Neighborhood Stabilization Program
The City of Xenia along with its Region 15 partners, received funding in 2009 from the NSP program. The City of Xenia has received $546,000 for demolition/landbanking, residential development, and administration. The process of demolition is beginning on 5-10 properties all of which were condemned, vacant and abandoned, and many foreclosed upon. Funds for residential development allows for rehabilitation of foreclosed upon properties to be sold to income eligible buyers, and new construction on previously foreclosed upon houses that have been demolished. Demolition can occur throughout the City of Xenia, residential development can occur only in target areas of the City.
DRAFT APPLICATION SUBMITTED TO STATE IN 2009
A draft copy of the Region 15 Ohio Neighborhood Stabilization Program Draft Application for Greene County, Clark County, City of Fairborn and City of Xenia is available at the City of Xenia Department of Community Development, 966 Towler Road, Xenia, Ohio, and downloadable here. The final application is due to the State of Ohio on February 27, 2009. If you have questions, contact the office at 937 376-7286.
NSP Background
In 2008 the Housing and Economic Recovery Act (HERA) (HR) 3221 was passed by Congress. This legislation provided for more than $3.9 billion of funds to be distributed by the U.S. Department of Housing and Urban Development to address the nation's abandoned and foreclosed homes crisis through the Neighborhood Stabilization Program (NSP). The Ohio Department of Development was allocated more than $83.3 million of the Ohio NSP funds to allocate to 17 cities, 12 counties, and 21 regions in Ohio. The funds were allocated based on foreclosures, subprime loans, defaults, delinquencies and vacancy rates, with the areas of greatest need receiving funding. These funds are to be used to improve neighborhoods by purchasing and redeveloping abandoned and foreclosed properties, establishing land banks and demolishing blighted structures.
Region 15, made up of Greene, Clark, Xenia, and Fairborn, with lead entity Greene County, has been authorized to obtain funding to local governments up to $1,970,355 with approximately $450,000 to be available to the City of Xenia. The City of Xenia has developed a preliminary local strategy showing "greatest need" targeted neighborhoods and outlining their general plans for utilizing the funding.
NSP funds may be used for the following types of activities:
- Residential Development - providing homeownership opportunities to households with incomes at or below 120% of AMI, and the improvement and reuse of vacant and abandoned properties, (and may include either the demolition of, or rehabilitation of, vacant and abandoned residential property).
- Affordable Housing Rental Initiative - to encourage nonprofit organizations and public housing authorities to rehabilitate vacant and abandoned residential property as rental opportunities for households with incomes at or below 50% of the area median income. (This part of NSP will be handled by the Ohio Housing Finance Agency through their tax credit programs, and will not be likely to affect Xenia, Ohio).
- Land Banks/Demolition - The demolition of blighted residential structures and /or the establishment of land banks, including the acquisition of residential property in many cases.
While the guidelines of the NSP program are to closely mirror the regulations for Community Development Block Group (CDBG) NSP Funds may be used to assist families earning up to 120% of Area Median Income rather than the CDBG ceiling of 80% of Area Median Income.
Award recipients must follow CDBG Program Rules and Regulations as written in the October 6, 2008 Federal Register Notice and in the Ohio Neighborhood Stabilization Program Guidelines as published by the Ohio Department of Development, Office of Housing and Community Partnerships which stipulate that NSP will basically follow the same requirements as CDBG with CDBG objectives followed including environmental review, proper procurement procedures, and payment of federal prevailing wage rates. The State of Ohio requires that communities strictly target areas for use of the NSP funds, with local communities making the case for "greatest need" in those areas.
