Neighborhood Stabilization Program (NSP)

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*** UPDATE:  NSP2 Funding No Longer Available.  NSP3 Coming Soon.***

Neighborhood Stabilization Program (NSP) Funding for Multifamily Affordable Rental Housing

What is the Neighborhood Stabilization Program?

The city of Phoenix was awarded a $60 million Neighborhood Stabilization Program (NSP2) grant funded through the American Recovery and Reinvestment Act of 2009 (ARRA). The grant from the U.S. Department of Housing and Urban Development will be used to continue programs created in 2009 using $39.478 million in funds from the Housing and Economic Recovery Act (HERA). These programs address abandoned or foreclosed properties in the NSP Target Area through acquisition, rehabilitation, demolition, redevelopment and financial incentives.

 View the NSP Target Areapdf_icon

What is the Goal of the NSP Multifamily Affordable Rental Housing Program?

The goal of the program is to stabilize the multifamily housing market in the NSP Target Area, and ensure adequate availability of long-term affordable housing.  The NSP multifamily housing strategy includes two major components:

  • Acquisition and rehabilitation of foreclosed multifamily properties.
  • Preservation of affordable units created with federal funding.

Who can Apply for NSP Multifamily Funding?

  • Experienced nonprofit and private multifamily developers can apply for funding under the NSP Multifamily Affordable Rental Housing program.  
  •  Applications accepted until all $21.6 million in NSP2 funding has been committed. More information to follow on first review of applications.
  • A Funding Application Checklist has been prepared as a guide to assist when completing the application.

How Much Funding can I Apply For?

  •  Applications may request funding up to $4 million.  Funding requests in excess of this amount, up to $6 million, may be considered based on additional dollar-for-dollar leveraged funding provided by the developer.
  • All applicants will be subject to the city of Phoenix NSP Multifamily Affordable Rental Housing Underwriting Guidelines and specific NSP requirements.

What are the NSP Requirements?

NSP requirements include, but are not limited to:

  • Purchase price must be at least 1 percent below appraised value.
  • Properties must be abandoned or foreclosed as defined by HUD.
  • Properties must serve families at or below 50 percent of Area Median Income (AMI).pdf_icon
  • Properties must include energy efficient improvements such as Energy Star rated appliances, dual pane/low-e windows, etc.

Where Must Projects be Located?

Projects must be located within the NSP Target Area within the city of Phoenix. Priority will be given to applications where projects are located in at least one of the following within the NSP Target Area: 

In addition to the above, additional priority will be given to applications where projects are located within one-half mile of the following:

  • Public school
  • Park or recreational facility
  • Full service grocery store
  • Public transportation
  • Hospital or senior center

For additional information on the NSP2 program, please refer to the city of Phoenix NSP2 Multifamily Rental Housing Fact Sheet.

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