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Town of Jupiter, Wellington, Housing Partnership, Inc. and Neighborhood Renaissance Neighborhood Stabilization Program 2 (NSP2)
On July 30, 2008 the United States Congress approved Public Law 110-289 – Title III of the Housing and Economic recovery Act, 2008 (HERA), appropriating to the U.S. Department of Housing and Urban Development (HUD) funding for emergency assistance for the redevelopment of abandoned and foreclosed homes and residential properties. HERA was amended, and appropriated an additional 1.93 billion nationwide for the same purpose. This second round of neighborhood stabilization funds, referred to as Neighborhood Stabilization Program 2 (NSP2) is available through a competitive process and in order for the Town of Jupiter, the Wellington, Housing Partnership, Inc., and Neighborhood Renaissance to obtain these funds; the organizations must submit a funding application to HUD no later than July 17, 2009.
HUD’s Description of Neighborhood Stabilization Program 2
HUD determined five eligible uses for the NSP2 funds. They include:
1. Establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties, including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low- and moderate-income homebuyers including such mechanisms as soft-seconds.
2. Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon in order to sell, rent or redevelop such homes and properties.
3. Establish land banks for homes and residential properties that have been foreclosed upon.
4. Demolish blighted structures.
5. Redevelop demolished or vacant properties as housing
Public/Private Partnerships
The Town of Jupiter and Wellington, each of which is a municipal corporation within the State of Florida, Housing Partnership Inc. and Neighborhood Renaissance Inc., each of which is a private nonprofit 501(C)3 corporation within the State of Florida (hereby referred to as the NSP2 Consortium) are entering into an agreement to jointly apply for funds under the NSP2 request for applications for the purpose of addressing the problem of abandoned and foreclosed homes. The consortium will request $11.03 million under this program to be used in Palm Beach County Census Tracts 1.01, 2.02, 2.04, 2.05, 2.06, 2.12, 77.05, 77.08, 77.24, 77.25, 77.26 for the following activities.
Proposed Program Activities
Second Mortgage Program For Acquisition and Rehabilitation:
The applicant will implement a second mortgage assistance program utilizing NSP2 funds that will work with homeowners to acquire and rehabilitate foreclosed or abandoned properties.
Eligible families would be required to locate homes which have been foreclosed upon and complete all negotiations with the bank or financial institution which owns the property. Properties must be located in the Census Tracts identified in factor one of the application. Consortium staff will assist potential homeowners in determining affordability, assist households with negotiations, inspections, and evaluation of rehabilitation costs. Eighty-six units will be assisted with acquisition and rehabilitation.
Proposed cost: $7.31 million
Residential Multi-Family Rehabilitation and Rental
This activity will involve the purchase and rehabilitation of abandoned and
foreclosed multi-family residential properties, by partners Housing Partnership, Inc. and Neighborhood Renaissance.
All units acquired under this program must be located in one of the Census Tracts identified in Factor One of the application. The purchasing entity will be responsible for identification of the units and ensuring that the purchase price conforms to the NSP2 program. All units in the rental properties will be available to households with incomes at or below 50 % of Area Median Income (AMI).
The program will allow the funds to be used to purchase properties for rental. Each prospective homebuyer/renter will be required to attend housing counseling conducted by either Housing Partnership or Neighborhood Renaissance.
For rental property, the rate charged to renters should not exceed the Fair Market Rent for the county. At least fourteen units will be purchased under this activity.
Proposed Cost: $ 2.72 Million
General Administration and Planning
The consortium shall use up to 10-percent as allowable by HUD for general administration and planning of the grant funds to achieve outcomes over a three year period.
Proposed Cost: $1.00 million
HUD determined five eligible uses for the NSP2 funds. They include: 1. Establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties, including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low- and moderate-income homebuyers including such mechanisms as soft-seconds. 2. Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon in order to sell, rent or redevelop such homes and properties. 3. Establish land banks for homes and residential properties that have been foreclosed upon. 4. Demolish blighted structures. 5. Redevelop demolished or vacant properties as housing
The Town of Jupiter and Wellington, each of which is a municipal corporation within the State of Florida, Housing Partnership Inc. and Neighborhood Renaissance Inc., each of which is a private nonprofit 501(C)3 corporation within the State of Florida (hereby referred to as the NSP2 Consortium) are entering into an agreement to jointly apply for funds under the NSP2 request for applications for the purpose of addressing the problem of abandoned and foreclosed homes. The consortium will request $11.03 million under this program to be used in Palm Beach County Census Tracts 1.01, 2.02, 2.04, 2.05, 2.06, 2.12, 77.05, 77.08, 77.24, 77.25, 77.26 for the following activities.
Proposed Program Activities
Second Mortgage Program For Acquisition and Rehabilitation:
The applicant will implement a second mortgage assistance program utilizing NSP2 funds that will work with homeowners to acquire and rehabilitate foreclosed or abandoned properties.
Eligible families would be required to locate homes which have been foreclosed upon and complete all negotiations with the bank or financial institution which owns the property. Properties must be located in the Census Tracts identified in factor one of the application. Consortium staff will assist potential homeowners in determining affordability, assist households with negotiations, inspections, and evaluation of rehabilitation costs. Eighty-six units will be assisted with acquisition and rehabilitation.
Proposed cost: $7.31 million
Residential Multi-Family Rehabilitation and Rental
This activity will involve the purchase and rehabilitation of abandoned and
foreclosed multi-family residential properties, by partners Housing Partnership, Inc. and Neighborhood Renaissance.
All units acquired under this program must be located in one of the Census Tracts identified in Factor One of the application. The purchasing entity will be responsible for identification of the units and ensuring that the purchase price conforms to the NSP2 program. All units in the rental properties will be available to households with incomes at or below 50 % of Area Median Income (AMI).
The program will allow the funds to be used to purchase properties for rental. Each prospective homebuyer/renter will be required to attend housing counseling conducted by either Housing Partnership or Neighborhood Renaissance.
For rental property, the rate charged to renters should not exceed the Fair Market Rent for the county. At least fourteen units will be purchased under this activity.
Proposed Cost: $ 2.72 Million
General Administration and Planning
The consortium shall use up to 10-percent as allowable by HUD for general administration and planning of the grant funds to achieve outcomes over a three year period.
Proposed Cost: $1.00 million
Second Mortgage Program For Acquisition and Rehabilitation:
The applicant will implement a second mortgage assistance program utilizing NSP2 funds that will work with homeowners to acquire and rehabilitate foreclosed or abandoned properties.
Eligible families would be required to locate homes which have been foreclosed upon and complete all negotiations with the bank or financial institution which owns the property. Properties must be located in the Census Tracts identified in factor one of the application. Consortium staff will assist potential homeowners in determining affordability, assist households with negotiations, inspections, and evaluation of rehabilitation costs. Eighty-six units will be assisted with acquisition and rehabilitation. Proposed cost: $7.31 million
This activity will involve the purchase and rehabilitation of abandoned and foreclosed multi-family residential properties, by partners Housing Partnership, Inc. and Neighborhood Renaissance.
All units acquired under this program must be located in one of the Census Tracts identified in Factor One of the application. The purchasing entity will be responsible for identification of the units and ensuring that the purchase price conforms to the NSP2 program. All units in the rental properties will be available to households with incomes at or below 50 % of Area Median Income (AMI).
The program will allow the funds to be used to purchase properties for rental. Each prospective homebuyer/renter will be required to attend housing counseling conducted by either Housing Partnership or Neighborhood Renaissance.
For rental property, the rate charged to renters should not exceed the Fair Market Rent for the county. At least fourteen units will be purchased under this activity. Proposed Cost: $ 2.72 Million
General Administration and Planning
The consortium shall use up to 10-percent as allowable by HUD for general administration and planning of the grant funds to achieve outcomes over a three year period.
Proposed Cost: $1.00 million
The consortium shall use up to 10-percent as allowable by HUD for general administration and planning of the grant funds to achieve outcomes over a three year period.
Proposed Cost: $1.00 million
