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Neighborhood Stabilization Program

The Neighborhood Stabilization Program (NSP) was authorized by the Housing and Economic Recovery Act (HERA) of 2008, which provided grants to all states and selected local governments on a formula basis. Cuyahoga Countyreceived over $12 million to be used in eligible areas within the Urban County Communities.

In 2009, the American Reinvestment and Recovery Act (ARRA) allocated approximately $2 billion in Neighborhood Stabilization Program 2 funds available on a competitive basis. Cuyahoga County, the City of Cleveland, Cuyahoga County Metropolitan Housing Authority and the Cuyahoga County Landbank formed a consortium and were awarded approximately $40 million in funding.

In September 2010, U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan awarded $1 billion in funding to states along with a number of counties and local communities struggling to reverse the effects of the foreclosure crisis as part of the third round of funding through the NSP. Cuyahoga County is expected to receive approximately $2.5 million in NSP3 funds.

As a result of this funding, the Department of Development created several programs, including the Ideal Homes Program, which renovated formerly vacant and abandoned homes to like-new status. Potential homebuyers are also eligible to receive up to $20% or $20,000 in down payment assistance. To learn more about this program, or to see a listing of the homes click here.

Program Materials

Developer Loan Program: The NSP Developer Loan program provides pre-qualified developers with financing to purchase, renovate and resell foreclosed houses to income eligible homeowners. Developers and Homeowners must be pre-approved to participate in this program.

Target Area Maps (NSP 2)

NSP 1 Quarterly Reports  

NSP 3 Quarterly Reports

Program Seminars

Resources for Homeowners and Tenants

While Neighborhood Stabilization Program funds may not be used to help existing homeowners and tenants, by law, other community resources are available. Homeowners having difficulty paying their mortgage should call "211" for referral to nonprofit counseling agencies that may be able to help negotiate payment plans or loan modifications and possibly offer one-time mortgage payment assistance.

Tenants concerned that the home or apartment they rent may be in foreclosure should also call "211" for referral to nonprofit agencies that may be able to help with advice on tenants' rights and assistance with moving costs if needed.

Once such agency that assists tenants is Cleveland Tenants Organization, at (216) 432- 0617. With financial support from Cuyahoga County, mailings are sent to tenants when the home they rent first goes into foreclosure. This advance warning allows tenants time to plan for an orderly move, instead of having to move on short notice when the foreclosure process is complete. Cleveland Tenants Organization and other community based nonprofit agencies are advocating for legal reforms to allow tenants to stay in their homes, as long as they pay rent, even after the foreclosure sale is complete.

For more information, contact:
Jonathan Holody
Program Officer