- Are Team Illinois communities considered priority areas under this program?
Yes, as a special needs population identified by the State, TEAM ILLINOIS communities are considered priority areas for the NSP.
- How many Illinois communities will receive direct funding from HUD?
The State of Illinois is one of the NSP entitlement communities to receive direct funding from HUD. The Illinois Department of Human Services (DHS) has been named by the Governor's Office to be the Lead Allocating Agency for the State. DHS will
work in strong partnership with the Illinois Housing Development Authority (IHDA) and the Illinois Department of Commerce and Economic Opportunity (DCEO) to ensure the proper administration of the NSP funds.
In addition, there are 13 other NSP entitlement communities in the State that will receive direct funding from HUD. Those communities include: Aurora, Chicago, Cicero, Cook County, DuPage County, Elgin, Joliet, Kane County, Lake County, McHenry
County, Rockford, St. Clair County, and Will County.
- What will this money do?
This funding is intended to stabilize neighborhoods. To do this, local governments and other entities can:
- Buy abandoned or foreclosed homes;
- Redevelop demolished or vacant properties;
- Demolish or rehabilitate abandoned, foreclosed or blighted properties;
- Offer down payment and closing cost assistance to low- to moderate-income homebuyers
- Reuse properties for affordable rental housing
- Create landbanks to assemble, temporarily manage, and dispose of vacant land
- How long do NSP entitlement communities have to spend this money?
Grantees have 18 months to obligate these funds, and four years to expend funds. Congress was very clear that this money be put to work quickly. In some areas, this level of federal funding will be unprecedented, so HUD will help these communities
implement their programs. Meanwhile, we are actively encouraging local governments to coordinate with each other and with the State. Implementing these programs may require an area-wide or even regional approach.
- What will happen if grantees don't obligate the funding within 18 months?
HUD will recapture the funds.
- How can residents in my community access NSP funds to combat the foreclosure crisis we are facing?
Please be advised that NSP grants are only distributed to designated NSP grantees-state agencies and local governments. Each grantee will have to determine how best to allocate its NSP grant so long as it complies with the eligible uses described in
Title III of the Housing and Economic Recovery Act of 2008. The State and local governments can distribute funds to other local governments, to nonprofits and other governmental entities, and can carry out activities directly. In some cases, NSP
grantees may choose to manage their grants collaboratively with other NSP grantees or contract out to a private organization. Individual citizens or nonprofits should check with their local government or the State to find out how they may receive
- Have the NSP regulations been published yet in the Federal Register? If so, is it possible to get an electronic copy? If not, do you know when they will be published?
Yes, the NSP Federal Register Notice is currently available on the NSP website. It was also published in the Federal Register on October 6, 2008, cited under 73 FR 58330.
- The Federal Register Notice discussion on program income says that the sale of property must be in an amount equal to or less than the cost to acquire and redevelop or rehabilitate the home or property, but the example talks about $25,000.
How can there be profits if the sale must be in an amount equal to or less than the acquisition cost?
It is true that in some circumstances the sale of a property will not generate a profit, but there is a vital distinction. The requirement regarding the sale price has to do with selling a property to someone for use as their residence (see Notice
section J). The example cited in the Federal Register Notice question concerns program income requirements, and it talks about selling a multifamily building (such as a rental property), but the example does not talk about selling individual units to
individual homeowners; it talks about selling the entire building. Nothing prohibits selling a residential building to an investor, developer or a nonprofit for a profit.
- Can an NSP grantee offer NSP funding to a person whose home has been foreclosed in order to buy another home? Can a nonprofit purchase a foreclosed home and sell it back to the original owner who was foreclosed?
Nothing would prevent a grantee from taking these actions. It is up to the grantee to decide whether this is an appropriate use of their funds.