Discussion Paper

How to spend $3.92 billion: stabilizing neighborhoods by addressing foreclosed and abandoned properties

Abstract: The Housing and Economic Recovery Act of 2008 created the Neighborhood Stabilization Program (NSP), under which states, cities, and counties will receive a total of $3.92 billion to acquire, rehabilitate, demolish, and redevelop foreclosed and abandoned residential properties. These funds can stabilize hard-hit neighborhoods, putting them on the path to market recovery. This will only happen, however, if they are used in ways that are strategically targeted and sensitive to market conditions. This paper outlines 11 key principles that states, counties, and cities should follow as they plan for and use NSP funds.

Keywords: Housing and Economic Recovery Act; Neighborhood Stabilization Program (NSP); Foreclosure;

Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Community Affairs Discussion Paper

Publication Date: 2008

Number: 08-01

Pages: 27 pages