City Applies for Neighborhood Stabilization Program 2 Funding

City Applies for Neighborhood Stabilization Program 2 Funding

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 to stabilize neighborhoods impacted by foreclosure is being realized.  Denver received approximately $6 million to implement NSP1, which is underway now.

Under NSP2, the U.S. Department of Housing and Urban Development allocated an additional $1.93 billion which will be awarded on a competitive basis to states, local governments and nonprofit organizations. The deadline to apply for NSP2 funding was July 17, 2009. The City of Denver Office of Economic Development applied for $18,994,444 in NSP 2 funds. Recipients will use the funds awarded under this notice 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.

Twenty-five percent (25%) or more of funds will target households at 50% of the area median income or less. Denver’s NSP2 application focused on identifying and pursuing multi-family and single-family opportunities for redevelopment and rehabilitation along enhanced transit corridors and rail lines, building and rehabbing to green standards and creating jobs. Denver will utilize a comprehensive approach to redeveloping impacted neighborhoods, including workforce training and assistance, developing small business opportunities and green job creation.

Proposed NSP2 activities are:

• Acquisition and rehabilitation of single family and multi-family housing units
• Acquisition and development of vacant land
• Demolition of blighted structures
• Financial assistance to households purchasing foreclosed units

The City of Denver NSP2 Program is focusing on highly impacted census tracts within the City that are along high traffic bus corridors and existing and future light rail lines. Creating affordable housing opportunities for low and moderate income households near transit provides greater access to job centers and economic opportunities. If awarded funding, the City will focus the NSP2 program in these Denver neighborhoods:

• West Colfax – Census tracts 7.01 and 7.02
• Westwood – Census tracts 45.01 and 45.02
• Villa Park – Census tracts 9.04 and 9.05
• Globeville – Census tract 15.0
• Chaffee Park – Census tract 2.01
• Sunnyside – Census tract 11.01
• Cole – Census tract 36.01
• Clayton – Census tract 36.02
• Northeast Park Hill – Census tracts 41.01 and 41.02
• Montbello – Census tracts 83.04, 83.05, 83.06, 83.11, 83.12
• Green Valley Ranch – 83.03
• Elyria Swansea – 35.0

The full City and County of Denver Neighborhood Stabilization Program 2 application can be accessed here.

Posted on Monday, July 20, 2009 (Archive on Monday, January 01, 0001)
Posted by kpellegrin  Contributed by kpellegrin