Neighborhood Stabilization Program 2 (NSP2)

The Neighborhood Stabilization Program2 (NSP2) is a HUD program established to stabilize neighborhoods whose viability has been and continues to be damaged by the economic effects of properties that have been foreclosed upon and abandoned. NSP2, a term that references the NSP funds authorized by Title XII of Division A of the American Recovery and Reinvestment Act of 2009, provided grants to states, local governments, nonprofits and a consortium of public and or private nonprofit entities on a competitive basis.

TCB was awarded $78 million of NSP2 funds to revitalize distressed communities impacted by the foreclosure crisis. The grant is one of just a handful of awards to national non-profits, and it is the only exclusively multifamily NSP2 award. TCB is investing its NSP2 funds in communities that have been hardest hit by foreclosure and abandonment, reviving distressed neighborhoods and creating construction and permanent jobs. These funds will directly leverage approximately $290 million in additional public and private financing and create or preserve 1,200 units of affordable housing in Massachusetts, Connecticut, New York, Pennsylvania, Ohio, Virginia, North Carolina, Indiana, Illinois and the District of Columbia.

NSP2 HUD Waiver Request - Public Notice

NSP2 HUD Waiver Request - Public Notice 10152012 [PDF 23KB]

NSP2 HUD Waiver Request - Public Notice

Conflict of Interest Letter - April 30, 2013 [PDF 42KB]

Current Status

TCB is using NSP2 funds to accelerate construction on "ready to-go" multifamily buildings. TCB will speed revitalization of blighted assets and accelerate job creation and local tax impact.
Since the award of the grant in February 2010, TCB has already obligated more than $81 million which will produce 930 units of affordable housing. 669 of these units are in abandoned or foreclosed properties. 261 units are in newly constructed projects on vacant sites in communities with high rates of foreclosure and vacancy.
TCB's NSP2 activities create jobs. Of the $81 million obligated to date, approximately $18.5 million will be used for acquisition; the remaining $62.5 million will be used to pay contractors, engineers, architects and other local workers and small businesses to complete the developments. We estimated that this initial work alone will create as many as 600 short-term and 150 long-term jobs. As of October 2011, 166 long-term jobs had been created.
In most cases, the majority of the NSP2 funds TCB loans to developments will be repaid when permanent financing is assembled. Then, TCB will reinvest the funds in further revitalization of abandoned, foreclosed and vacant properties. By revolving the funds several times, TCB’s NSP2 program will produce over 2,800 units of housing and leverage over $290 million of debt and equity investment in distressed communities in its first three years, creating as many as 3,000 short-term and 750 long-term jobs.
In March 2011, HUD's Office of Inspector General (OIG) auditors reported no findings. TCB is expected to expend 50% of the grant funds by February 2012. Visit the Audits and Reporting page to download the complete audit.
As of the February 11, 2012 deadline, TCB's NSP2 program met and exceeded the NSP2 50% expenditure goal by spending $41,627,298.46 of its $78.6 million dollar award. See HUD's letter congratulating TCB on the milestone.

Approved NSP2 Loans

47th Street Lofts - Chicago, IL
Cohoes Falls Apartments - Cohoes, NY
Depot Crossing - Wareham, MA
Province Landing - Provincetown, MA
Northtown Village Townhomes Senior - East Chicago, IN
St. Stephen's Apartments - Chicago, IL
Thornwood House - University Park, IL
West Village Apartments - New Haven, CT
The Mills - Charlotte, NC
Pontiac Square - Fort Wayne, IN

Contact

For further information on TCB's NSP2 grant, please contact our Boston office:

The Community Builders, Inc.
95 Berkeley Street
Suite 500
Boston, MA 02116-6240

Jane Seiden
Phone: 857-221-8654
E-mail: jseiden@tcbinc.org