Community Development and Neighborhood Conservation
Affordable Housing and Housing Initiatives

Pima County Neighborhood Stabilization Program (NSP1)

Update: Pima County’s NSP1 application was approved, and the county entered the formal grant agreement with HUD on March 19, 2009. We have begun activities in three areas in the county:

Cardinal / Valencia area – HUD data identified this as an area of high home foreclosures and abandonment.  Staff has surveyed neighborhoods and begun to identify properties for purchase. We will choose vacant, uninhabited homes in scattered locations, which are located in otherwise well-kempt neighborhoods, and secure any homes purchased prior to the start of rehabilitation work.

We published a Request for Qualifications for firms to carry out the rehabilitation of homes and after rating applicants, have contracted with two local firms. Besides fixing damage, obvious problems and cosmetic issues, we will be using the Pima County Green Remodeling Program guidelines to help increase the resource, energy and water use efficiency, and improve the indoor environmental quality of rehabilitated homes – this will create homes that are more comfortable and affordable for the new residents.

South Tucson – the Primavera Foundation is a non-profit organization that provides homeownership services and develops housing for low-income clients. Primavera will use NSP1 and other fund sources to acquire scattered vacant residential lots for new home construction, and to purchase and rehabilitate vacant foreclosed homes, to provide affordable housing opportunities in South Tucson and surrounding areas. Primavera will build EnergyStar-rated new homes, and will use the county’s Green Remodeling guidelines for home rehabilitation.

Community of Ajo, AZ – the International Sonoran Desert Alliance (ISDA) is a non-profit organization that has initiated housing, economic development, and historic preservation projects in this community in far western Pima County. ISDA will use NSP1 funds to redevelop a portion of the historic Ajo Plaza, rehabilitating two vacant stores into viable new retail spaces, also using the county’s Green Remodeling guidelines in their redevelopment of this part of the Plaza.  ISDA may also oversee, with permission of the landowners, the demolition of vacant, blighted structures scattered throughout the community.

Introduction
Arizona local governments received news that the Department of Housing and Urban Development (HUD) has began the Neighborhood Stabilization Program (NSP1) to stabilize communities hardest hit by foreclosures, delinquencies, and the decline of housing values. NSP will provide emergency assistance to state and local governments to acquire and redevelop foreclosed properties. Pima County will receive $3,086,867 in grant monies to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. The program is authorized under Title III of the Housing and Economic Recovery Act of 2008.

Requirements
Each NSP grantee receiving an allocation of NSP funds submitted an action plan amendment describing the intended use of funds on December 1, 2008. All funds must be used within the statutory deadline of 18 months from receipt of the funds.

Neighborhood Stabilization Program Action Plan
The NSP Action Plan describes the process that will be used to determine the areas of greatest need, the distribution and eligible uses of NSP funds, and the expected outcomes and benefits to low-, moderate-, and middle- income families in Pima County.

Please review the the Pima County NSP Grant Application and it's corresponding documents.

NSP Quarterly Progress Reports

Pima County NSP Grant Application (Word)

NSP Substantial Amendment Checklist (Word)

Completed Application For Federal Aid (PDF)

Certifications (PDF)

Amendment Resolutions for Annual Action Plan (PDF)

NSP Contact Person:

Marcos Ysmael                                                          
Pima County CDNC
520-243-6752

Area of Greatest Need
Jurisdictions that receive NSP funds must give priority emphasis to the areas of greatest need within their states, including those:

(1)     with the greatest percentage of foreclosures,
(2)     with the highest percentage of homes financed by subprime mortgage related loans, and
(3)     identified as likely to face a significant rise in the rate of              home foreclosures.

HUD targeted areas based on the number/percent of foreclosures, subprime mortgages and mortgage defaults and delinquencies. HUD took a data driven approach to this process, relying on numerous data sets from government agencies and private sources. Below are comprehensive data maps that were used to determine the funding that Pima County received from the NSP program. Please review them to gain a better understanding of the current needs for the community.

Estimated Abandonment Foreclosure Risk Score Map(PDF)

Detailed Estimated Abandonment Foreclosure Risk Score Map (PDF)

HMDA High Cost Loan Rate Map (PDF)

Predicted 18 Month Underlying Foreclosure Rate Map (PDF)

USPS Residential Vacancy Rate Map (PDF)

Pima County CDP Data (Excel)

Map of Regional Foreclosures from 01/08-09/08

Eligible Uses
NSP funds may be used for activities which include, but are not limited to:

    * Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties;

    * Purchase and rehabilitate homes and residential properties abandoned or foreclosed;

    * Establish land banks for foreclosed homes;

    * Demolish blighted structures;

    * Redevelop demolished or vacant properties

Low/Moderate/Middle Income (LMMI) Requirements

All NSP funds shall be used to benefit individuals and families whose incomes do not exceed 120 percent of area median income, measured as 2.4 times the current Section 8 income limit for households below 50 percent of median income, adjusted for family size.

Note:  An entitlement community receiving money from the state must apply the area median income levels applicable to its regular CDBG program; not the “balance of state” levels.

At least 25 percent of NSP funds shall be used for the purchase of abandoned or foreclosed upon homes or residential properties that will be used to house individuals or families whose incomes do not exceed 50 percent of area median income.

Pima County 2008 income Limits 50%-120% (Word)

Pima County NSP Reports and PowerPoints

PowerPoint for Pima County Housing Commission: NSP Draft Plans (PPT)
The City of Tucson NSP Action Plan (PDF)

We will be updating our website as changes develop, so please check back often or refer to the following links for further information:

Neighborhood Stabilization Program (NSP)

NSP Federal Register Notice

NSP Statewide Allocations

NSP Local Government Allocations Summary

NSP Data on the Income Limits

NSP FAQ's posted by HUD

 

Solicitation for Applicants - Foreclosed Residential Property Acquisition and Rehabilitation for Affordable Rental Use

Solicitation for Applicants (pdf)

Residential Property Rehabilitation Specifications - June 2009

Specifications (pdf)

 

Pima County community development and housing programs promote equal opportunity for all residents.