Federal Funds Stabilizing Phoenix Neighborhoods
As part of the Housing and Economic Recovery Act passed by Congress in July 2008, NSP funding went to communities hardest hit by residential foreclosures and mortgage delinquencies.
The city of Phoenix received an initial grant of nearly $39.5 million in federal NSP funds to help eligible families purchase foreclosed homes (at a discount), which in turn helps to stabilize Phoenix neighborhoods.
Phoenix developed an action plan for using the funds, according to the community's needs and input. The plan offers various types of homeownership assistance, including loans for down payment and closing costs and for home improvement and offers "move-in ready" homes throughout the Phoenix area. In addition, in February 2010 the city of Phoenix was awarded a grant of $60 million under the Neighborhood Stabilization Program (NSP2), funded through the American Recovery and Reinvestment Act (ARRA) of 2009. The U.S. Department of Housing and Urban Development (HUD) awarded a total of $1.93 billion dollars to states, cities and organizations. Phoenix, along with its partners, received the sixth largest grant amount in the competitive process.
In September 2010, HUD announced that the Obama administration had awarded an additional $1 billion to further stabilize neighborhoods hard-hit by foreclosure. This third round of funding, known as NSP3, brought $16 million to the city of Phoenix to stabilize neighborhoods. The NSP3 Substantial Amendment outlines how the NSP3 funds be used to continue neighborhood stabilization programs implemented under NSP1 and NSP2.
To learn more, call 602-262-6602 or email nsphome@phoenix.gov.