The US Department of Housing and Urban Development (HUD) created the Neighborhood Stabilization Program (NSP) to provide assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. For details on the program, visit: www.hud.gov/offices/cpd/communitydevelopment/programs/neighborhoodspg/

NSP1

Under the first round of funding, called NSP1, Minnesota Housing (the State) and Hennepin County received an allocation from HUD of $38.8 million and $3.8 million, respectively. The City of Brooklyn Park has been allocated $3.67 million in NSP funds to assist the City with its foreclosure recovery plan. 
 
Brooklyn Park plans to utilize the $3.67 million in NSP1 funds for the following activities: 

1. Financing Mechanisms for Buyers: The City is offering down payment assistance to homebuyers purchasing foreclosed homes and zero-interest rehabilitation loans to homebuyers who intend to purchase and rehabilitate a home for owner-occupancy. Information on these programs will be available soon.

2. Purchase and Rehabilitate Vacant Homes: The City is partnering with developers with the capacity to purchase, rehabilitate, and re-sell homes to new owner-occupants. The program targets severely damaged homes and leverages private re-investment in the city’s housing stock.

3. Demolish Homes and Land Bank Lots: The City is purchasing a limited number of blighted homes for demolition. The lots will be land banked for a number of years until the market recovers and homes can be re-built on the vacant lots.