The Neighborhood Stabilization Program (NSP) was established for the purpose of stabilizing communities that have suffered from foreclosures and abandonment. Through the purchase and redevelopment of foreclosed and abandoned homes and residential properties, the goal of the program is being realized.

NSP1, a term that references the NSP funds authorized under Division B, Title III of the Housing and Economic Recovery Act (HERA) of 2008.  NSP2 is a term that references the NSP funds authorized under the American Recovery and Reinvestment Act (the Recovery Act) of 2009, provides grants to states, local governments, nonprofits and a consortium of nonprofit entities on a competitive basis.

NSP1

Under NSP1, HUD allocated $3.92 billion on a formula basis to 309 grantees including 55 states and territories and 254 selected local governments. The program was designed to stabilize communities across America hardest hit by foreclosures. Grant agreements for these funds have already been signed.   The City of Kettering has identified two target areas as areas of greatest need.  It is within these two target areas, Census Tracts 210 and 213, that the City’s NSP funds will be used.  Link to Map of Target Areas

In April 2009, the City of Kettering received NSP1 funds from the State of Ohio in the amount of $795,574.00.  Currently 94% of these funds have been either obligated to or expended on projects.  To date, the city has purchased vacant or abandoned properties on Dunhill Place and Talisman Drive and will renovate them to bring them up to city code.  The properties will then be sold to qualifying persons of low, moderate or middle-incomes.  Additionally, the city provided direct assistance to two income-eligible first time homebuyers to purchase vacant and abandoned homes in the target areas.  NSP will also provide funding to bring these dilapidated homes up to city code as well.  Funding is currently available to assist one more homebuyer to purchase and renovate a vacant, abandoned, or foreclosed home in the target census tracts indicated on the map above.  Applicants must meet the eligibility requirements and income guidelines outlined on our “Buying A Home” page.

Kettering has obligated $260,000.00 in NSP1 funding for new construction of four new homes in the Wiles Creek area.  These homes will be constructed on vacant land that was formerly occupied by substandard housing.  Construction on new homes is expected to complete by the Spring of 2011.

NSP2

Under NSP2, HUD allocated $1.93 billion on a competitive basis to states, local governments, and non-profit organizations. The program objectives and eligible uses did not change under the Recovery Act, but the allocation process and some regulations on the funds have changed.  

The City of Kettering has also been awarded $1,538,715.00 in NSP2 funding as part of their participation with the City of Dayton NSP2 Consortium

(City of Dayton's Consortium page).  The Consortium received more than

$29 million in total.  Funding should be received by April 2010 and projects

will include:  purchase and renovation of vacant and foreclosed homes for home ownership opportunities and new construction on vacant lots in the Wiles Creek Area. 

Nature of the Program

NSP is a component of the Community Development Block Grant (CDBG). The CDBG regulatory structure is the platform used to implement NSP and the HOME program provides a safe harbor for NSP affordability requirements.

NSP grantees develop their own programs and funding priorities. However, NSP grantees must use at least 25% of the funds appropriated for the purchase and redevelopment of abandoned or foreclosed homes or residential properties that will be used to house individuals or families whose incomes do not exceed 50% of the area median income. In addition, all activities funded by NSP must benefit low, moderate, or middle-income persons whose income does not exceed 120% of area median income. Activities may not qualify under NSP using the "prevent or eliminate slums and blight" or "address urgent community development needs" objectives.

Eligible Uses

In general, 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

Partnerships

Through a partnership with CountyCorp's Housing Source, the City of Kettering has rehabilitated two properties with Neighborhood Stabilization funding.  The properties meet HUD and City of Kettering housing standards and specifications.  The rehab included new heating and air conditioning systems, roof replacement, water heater replacement, new windows, flooring, bath fixtures, appliances and landscaping.  Any lead-based paint, asbestos or insect infestation/damage has been remediated.  A particular focus of this project has been energy efficiency and long-term affordability. 

One of these properties, located at 1113 Mendota Court, Kettering, Ohio 45420, is currently for sale to a qualified buyer.  Incentives to purchase include down payment assistance, 5-year home warranties and more.  For more information, please visit CountyCorp's Housing Resource web page at http://www.thehousingsource.org/archives/6415.

Contact

If you would like additional information regarding this program, please contact us at 937-296-2441.

Annual Action Plan

2012 Annual Action Plan 2012 Annual Action Plan Draft

2012 Annual Action Budget 2012 Annual Action Plan Draft Budget

Foreclosure Counseling

A recent survey released online by RealtyTrac showed that foreclosure rates in the Montgomery County, Ohio area were among the worst in the nation.  The HomeOwnership Center (HOC) of Greater Dayton, a partner agency to the City of Kettering, provides foreclosure counseling and education services to current and potential Kettering homeowners.  The HOC holds private counseling sessions in Kettering on the second and fourth Tuesdays of each month.  For more information or to schedule an appointment, please contact the HomeOwnership Center at 937-853-1600.

Historical Preservation and Proposed Federally Funded Projects

Clearance for some Community Development projects must be obtained from the Ohio Historic Preservation Office prior to commitment of funds.  Historic review of these projects must comply with Section 106 standards set by the Secretary of the Interior.  Information regarding historic review for current or proposed projects is available at the City of Kettering Planning and Development Department.  Questions, comments, or objections regarding historical preservation at proposed Community Development projects may be directed to the Community Development Program at 937-296-2441.  Written comments may be submitted to the City of Kettering Community Development Program, Planning and Development Department, 3600 Shroyer Road, Kettering, Ohio 45429.