NEIGHBORHOOD STABILIZATION
GENERAL INFORMATION
The Neighborhood Stabilization Program (NSP) has been established by US Department of Housing and Urban Development for the purpose of aiding communities that have suffered from foreclosures and home abandonment. The NSP program accomplishes its purpose by providing funding for the purchase and redevelopment of foreclosed homes and residential properties.
Through the NSP-2 program, the City of Bend has been allocated approximately $2.3 million dollars to assist distressed areas throughout Central Oregon (including Deschutes, Jefferson, and Crook Counties). In order to stabilize neighborhoods and stem the decline of house values of neighboring homes, NSP-2 program funds are being utilized to offer 0% interest, deferred payment loans to eligible households. The loan funds can be used to assist with the purchase of bank owned foreclosed upon homes.
General Loan Information:
| Maximum |
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20% of the purchase price or $35,000, whichever is less |
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| Interest |
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0% |
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| Terms |
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Deferred payment (due upon the sale, transfer, refinance, assignment or other conveyance) |
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| Down Payment |
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Borrower must contribute at least 50% of first mortgage lender's required down payment. Borrower's required contribution for the down payment may never be less than $1,000 or 1% of the purchase price, whichever is greater. Gift funds are a permitted source of cash to meet this minimum payment threshold. |
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| Fees |
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There are no fees assocated with the loan, however standard closing costs, such as title insruance, escrow fees, recording fees, etc. would apply (these costs are estimated to be approximately $525). |
General Loan Restrictions:
| 1. |
Applicant's income must not exceed 120% of the Area Median Income. (To view a copy of the income limits, click here). |
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| 2. |
Property must be within an eligible Census Tract (To view a map of eligible census tracts, click here) |
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| 3. |
Property must be purchased and maintained as a primary residence; this program is not open to investors or rental property owners. |
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4. |
For a copy of the NSP underwriting guidelines, please click here. |
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Other Information:
1. The NSP funds come from the Federal Government, therefore it is critical that particular program guidelines and statutory provisions be included in every Purchase Agreement. For a project to receive funding under the NSP program, the original offer must include the following addenda:
Acquisition Provisions Addendum, click
here
Program Provisions Addendum, click
here
2. Policy Memos
3. Non-profit or governmental agencies interested in submitting proposal for the Neighborhood Stabilization Program 50% Median Income Program Allocation, should click here.
Accessing NSP Funds - A Step by Step Guide
For a step-by-step guide to accessing the Neighborhood Stabilization Program process, please click here
Please submit program application, questions, comments, and/or concerns to:
Greg Blackmore
Program Coordinator, Affordable Housing Division
City of Bend
710 NW Wall Street
Bend, OR 97701
541.693.2123
gblackmore@ci.bend.or.us
