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

NSP1 was created under the Housing Economic and Recovery Act of 2008.  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 is utilizing 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 and rehabbing foreclosed homes with a zero-interest loans forgivable after ten to 25 years with the intention of purchasing a home for owner-occupancy. For information about obtaining down payment and rehabilitation assistance, please visit http://hennepin.us/neighborhoodstabilizationprogram or contact Tonja-West Hafner at tonja.k.west-hafner@co.hennepin.us

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. The City plans to have involvement in 90 properties with this activity over the next 3-5 years. Please visit www.brooklynpark.org/properties for a list of available rehabbed homes for purchase.
 
3. Demolish Homes and Land Bank Lots: Under rare circumstances, the City may purchase blighted homes for demolition. The City plans to take this course of action if the costs to build a new home are less than to rehabilitate the property.  Lots will be land banked for a number of years until the market recovers and homes can be re-built on the vacant lots. 

Please click here to review a report detailing the project funds spend down.