The Neighborhood Stabilization Program Grant (NSP) was established for the purpose of stabilizing communities that have suffered from foreclosures and abandonment.
NSP1 (Formula Allocation) HUD allocated $3.92 billion on a formula basis to 309 grantees including 55 states and territories and 254 selected local governments. The program was designed to stabilize communities across America hardest hit by foreclosures. NSP1 funds are authorized under Division B, Title III of the Housing and Economic Recovery Act (HERA) of 2008, provides grants to all states and selected local governments on a formula basis.
NSP2 (Competitive Allocation) HUD allocated $1.93 billion on a competitive basis to states, local governments, and non profit organizations. The program objectives and eligible uses did not change under the Recovery Act, but the allocation process and some regulations on the funds have changed. NSP2 funds are authorized under the American Recovery and Reinvestment Act (the Recovery Act) of 2009, provides grants to states, local governments, nonprofits and a consortium of nonprofit entities on a competitive basis.
The deadline to apply for NSP2 funding was July 17, 2009.