The Neighborhood Stabilization Program

Neighborhood Stabilization Program (NSP) funding is intended to stabilize neighborhoods. To do this, State and local governments can: Buy abandoned or foreclosed homes; Redevelop demolished or vacant properties; Demolish or rehabilitate abandoned, foreclosed or blighted properties; Offer down payment and closing cost assistance to low- to moderate-income homebuyers; reuse properties for affordable rental housing. In addition, these grantees can also create land banks. The Louisville Metro Neighborhood Stabilization Program will allocate approximately $2-4 million toward the acquisition and redevolopment of vacant properties to be sold for private homeownership or leased to low-income households. Louisville Metro selected River City Housing, Rebound Inc, and New Directions Housing (NDHC) to redevelop vacant properties to be sold for homeownership in the target areas. New Directions Housing Corporation has chosen to acquire and redevelop vacant residential properties in the Shelby Park Neighborhood. Vacant properties acquired and improved using NSP funding will proceed expeditiously to construction. Anyone interested in the purchase of an NSP-assisted home, must receive at least 8 hours of HUD-approved housing counseling. Properties can be sold to families that earn up to 120% Area Median Income ($74,150 for a family of four in Louisville).