Program Description
The Neighborhood Stabilization Program (NSP) provides funding for the purchase of foreclosed or abandoned properties and to rehabilitate, resell, or redevelop these properties in order to stabilize neighborhoods and stem the decline of house values of neighboring homes.Funding Source
The Neighborhood Stabilization Program, which provided South Dakota with $19.6 million, was authorized under Title III of the Housing and Economic Recovery Act of 2008. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, South Dakota will receive an additional $5 million for NSP3 activities.
Eligibility Requirements
An NSP eligible property must be located in a targeted area only and provide permanent housing. Eligible applicants will be units of local governments, nonprofit organizations and for profit developers.
Eligible Activities
- Financing mechanisms for homeownership assistance
- Purchase and rehabilitation of homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent or redevelop such homes and properties
- Demolish blighted structures
- Redevelop demolished or vacant property
- Establish land banks for homes and residential properties that have been foreclosed upon
Application Procedure
SDHDA will provide notice of availability of funds.