# N

S P 3 eighborhood tabilization rogram

To the extent feasible, an NSP3 activity must have a direct relationship to addressing redevelopment of foreclosed upon, abandoned, and/or vacant multi-family or single- family properties. Applicant must be the entity who will maintain site control and directly carry-out NSP3 activities without the assistance of sub-recipients or sub-awardees. Applications may contain one or more activities. All proposed activities must meet the national objective of serving individuals and households whose incomes are ≤ 120 percent of area median income. In addition, at least 25 percent of the grant request must benefit individuals and households whose incomes are ≤ 50 percent of area median income. (Note: Demolition costs are limited to 10 percent of grant funds.) We encourage you to develop cost-effective projects that offer significant impact and can be carried out expeditiously. Please pay special attention to State Objectives and project review criteria in the PY2010 Action Plan Substantial Amendment.

- A. Area(s) of Greatest Need – Proposed project must target units located in Jefferson County within an area with a NSP3 Foreclosure Need Score of 15 or greater. Applicant must provide a local housing market analysis which in addition to home foreclosures, abandonment of properties and sub-prime loans may include items such as sales volume, sales price, cost and availability of credit, absorption rate, and age of listings. Analysis will include the likely volume of properties eligible for NSP3 activities. Other important market issues could include typical development costs, level of required rehabilitation, price volatility, resale and lease-up time, property type, property/project size, and level of homeownership. Describe the data sources used to determine the area(s) of greatest need. For guidance, please refer to HUD’s NSP3 Program Design Guidebook at the following link: http://hudnsphelp.info/media/resources/NSP3DesignGuidebook.pdf. It is important to select an area of need where market conditions will support the proposed project and where the proposed project will have a stabilizing impact on the community.
- B. Project Description - Describe the project in as much detail as possible including separate elements of the project. For example, if the project consists of acquisition and rehabilitation of foreclosed upon homes and the sale or lease of those properties to qualified buyers or renters, the applicant should address the following: identify (or describe process to identify) properties to be acquired; determine pricing of these properties to ensure required discount (minimum one (1) percent discount); required rehabilitation standards; the process to carry out rehabilitation activities; identify (or describe process to identify) potential buyers or renters for these properties; identify continued affordability standards and enforcement mechanisms (as well as definition of affordable rents if applicable) to ensure long-term affordability; the process to ensure each homebuyer obtains a mortgage loan from a lender who agrees to comply with the bank regulators’ guidance for non-traditional mortgages; the process to provide the required eight hours of homebuyer counseling from a HUD-approved housing counseling agency before obtaining a mortgage loan; and the process to affirmatively

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