- What is Land banking?
"To acquire homes for later development, rehabilitation or affordable sale or rental. Properties must be residential and have been foreclosed upon. Vacant land can not be acquired for land banking purposes."
- What are Transit Oriented Activities?
Mixed-use residential or commercial area designed to maximize access to public transport, and often incorporates features to encourage transit ridership. A neighborhood that has a center with a transportation hub surrounded by relatively high-density
- If a property is not in foreclosure but is blighted, can it be used for a project?
Yes, blighted structures can be demolished under the NSP Demolition Program.
- How long does a property have to be vacant?
To be considered abandoned, property must be vacant for at least 90 days AND no mortgage or tax payments have been made by the property owner for 90 days.
- What is a 'foreclosed property'?
A property that has been foreclosed upon at the point under state or local law, the mortgage or tax foreclosure is complete. Title of the property must have been transferred.
- What is an 'abandoned property'?
When mortgage or tax foreclosure proceedings have been initiated for that property, no mortgage or tax payments have been made by the property owner for at least 90 days, AND the property has been vacant for at least 90 days.
- Do properties need to be foreclosed and abandoned or foreclosed or abandoned?
- This is dependant on the NSP activity from which you are applying for funds. For example, properties must be foreclosed if you are applying for funds under the Residential Financing Program, however under the Home Buyer and Rental Program, properties
can be either foreclosed or abandoned. Under the NSP Redevelopment of Vacant and Abandoned properties, properties are not required to be foreclosed or abandoned but must be vacant. Please see HUD's Explanation of Property Types under Each Eligible Use
and the State's RFP for further information. Link:http://www.hud.gov/offices/cpd/communitydevelopment/programs/neighborhoodspg/pdf/nsp_terminology.pdf
- If we are interested in developing a group home or recovery home, which activity should we apply under?
Group homes and other types of public facilities are eligible for funds under the Redevelopment of Demolished or Vacant Property Program.
- What is considered "green initiatives"? Are they IHDAs LIHTCs?
Technologies, products and practices that will:
- Provide greater energy efficiency
- Provide healthier indoor air,
- Reduce water usage,
- Preserve natural resources, and
- Improve durability and reduce maintenance.
- Reduce waste and pollution
- Can household units be mixed with AMI, ELI, LI, and middle income families?
Yes, properties can be developed and are encouraged to provide integrated housing for one or any combination of the State's priority population.
- Can a new structure or re-had for new educational institution apply for these funds?
Yes, public facilities are eligible but must provide an "area benefit" to low-mod-middle income households. Applicants are reminded that the focus of the State's NSP funds will be housing.
- Can churches partake in the acquisition of land and property to help stabilize communities?
Non-profit organizations are eligible for NSP funds. Churches wishing to apply for in NSP funds must meet the requirements for faith based organizations as defined by HUD.
- Does it matter if an area was designated by HUD versus IHDA?
If an area was designated as an area of greatest demand by HUD and not IDHS, please provide a narrative explaining this in your application.
- Is an activity that includes acquisition, demo, and redevelopment considered one NSP activity or three activities (NSP Demo, NSP Redevelopment, NSP Home Buyer)?
This would be considered three differenent NSP activities.
- Can you do a demolition only project? If so, would this be awarded less points towards a successfully approved project?
Yes, applicants can apply for a demolition only project, however, there must be an area benefit to low-middle income households. Understanding that the State's goals are to use NSP funds for the end-goal of residential housing, demolition projects
that seek to redevelop the land are encouraged.
- I brought a foreclosure recently and would like to use NSP funds for rehab. Is this permissible?
Yes, NSP funds can be used for rehabilitation of previously acquired property under the Redevelopment of Demolished or Vacant Property Activity. However, the property must be vacant and must have been previously developed.
- What is permanent housing?
- Housing designed for permanent occupancy that is not defined by HUD as a public facility.
- Can holding costs for land banks be paid from NSP funds?
- The State will allow carrying costs of land banked properties to be paid for up to two years. Beyond two years, applicants should identify other sources of funds in order to meet the ongoing needs of the properties.
- Is an empty structure where the owner is paying the real estate taxes considered abandoned? Can this be properties previously acquired and demolished by the City?
- This property would not qualify as abandoned under the definition provided by HUD and provided in the previous answer. Properties owned by the city would likely not meet the definition of abandoned within the NSP Notice. The questioner may
investigate redeveloping properties under the NSP Redevelopment of Demolished or Vacant Property Program as properties redeveloped within that activity do not need to be abandoned.
- If a property is not in foreclosure, does it have to be both vacant AND abandoned?
- Applicants are reminded that the State strongly encourages applicants to target vacant property only in order to avoid costly relocation expenses. Requests to include occupied properties will be reviewed on a case-by-case basis by the State.
- What does "area benefit" mean?
- Activities such as demolition or land banking that may not have an immediate direct income eligible beneficiary must benefit a defined geographic area that is both predominantly residential and where at least 51% of the area households earn less than
120% of the area median income.
- Can you demolish a vacant structure?
- All properties demolished with NSP funds must be blighted, regardless of whether or not those properties will be redeveloped under the NSP Redevelopment Program.
- Can vacant properties be redeveloped into commercial buildings?
- Redevelopment of commercial structures is eligible under the NSP Redevelopment activity but commercial uses are not the focus of the State's plan. All uses of NSP dollars that will not directly benefit income eligible households must be shown to
benefit a defined geographic area that is both primarily residential and where at least 51% of residents earn no more than 120% of the area median income.
- Can you use NSP financing mechanism dollars on properties that use no other NSP dollars?
- Utilizing NSP dollars strictly for acquiring properties is an eligible use under NSP financing mechanism. The State is looking for proposals that can describe how the project will bring housing units back into useful service. This is a requirement of
the application regardless of the activity selected. In addition, if rehabilitation is needed and federal funds were used to acquire the property, then environmental, labor, and other federal requirements will still apply to the rehabilitation.
- Are vacant properties eligible for NSP dollars if they have not been foreclosed?
- Under the NSP Redevelopment of Demolished or Vacant Property Program, vacant properties are eligible and need not have been foreclosed upon.
- If we are combining activities, how do we know what types of properties are eligible?
- In circumstances where applicants are combining NSP activities, the eligible property types should be seen as cumulative. The property must be eligible under each activity to be undertaken.
- If we have previously purchased a property, can we apply for construction funds?
- The State does not see within the HERA statute or subsequent HUD notice that this activity would be ineligible but there remains some confusion on this topic and the State has asked HUD for clarification. Applicants should note however, that
properties should not be acquired in anticipation of NSP funds as those acquisitions would likely not be eligible. Also, previously acquired properties would no longer be considered foreclosed or abandoned and thus if allowed, would only be allowed under
the NSP Redevelopment of Demolished or Vacant Property Program. Applicants should also note the State may not have the ability to reimburse the costs of acquisition.
- Under NSP Redevelopment of Demolished or Vacant Property you can redevelop a vacant structure but if the structure is still very usable can you rehabilitate the structure for home ownership?
- The State has asked HUD for a determination as to whether "rehabilitation" is included within the definition of "redevelopment." HUD has indicated within their "Explanation of Property Types under Each Eligible Use" that rehabilitation may be
included as eligible within NSP Redevelopment of Demolished or Vacant Property Program pending the issuance of a Technical Correction Notice. Applicants should note that pending the issuance of the Technical Correction this answer is not final.
- Can NSP be used for non-housing project expenses that will support a community plan? A specific example would be planning and developing a neighborhood park in a neighborhood where NSP dollars will be used for acquisition / demolition /
- A neighborhood park could be an eligible end use under the NSP Redevelopment Program but applicants are reminded that housing is the focus of the State's Plan. Any demolition with NSP funds must be of blighted structures.
- Can 1-2 persons who want to live together - persons with disabilities - apply for a downpayment funding for a foreclosed home?
- NSP funds are not available directly from the State to individuals. Funds will be available to individuals through projects selected by the State through this Request for Proposals. In addition, there are existing programs to assist persons with
disabilities obtain downpayment and closing cost assistance. Contact the Illinois Assistive Technology Program, IHDA, your service provider and local Center for Independent Living to see if a program is operating in your community
- Is it the intent of the NSP to provide "gap financing" or a grant for the entire development cost?
- The State would prefer to provide NSP funds only for gap financing. Unfortunately in the current credit environment, access to private capital has been greatly reduced and traditional sources of funding for affordable housing have seen great
reductions in available funds. Given this environment, the State will consider requests from applicants for provide up to 100% of project costs. However, applicants should note that leveraging other funds with NSP funds will demonstrate local support for
the project and increased readiness to proceed as well as assist the State in funding as many projects as possible. In addition, all project costs must be reasonable.
- If we acquire, rehabilitate, and put a house up for sale, what happens if we can't sell the house? Can we sell to our own staff?
- There is a risk that homes may not sell quickly. Applicants should consider this risk as they design their programs and consider what alternatives they would be able to implement in this instance. Selling to staff would likely violate the conflict of
interest requirements of federal programs.