On July 30, 2008, President Bush signed into law the Housing and Economic Recovery Act of 2008. Under this legislation the Neighborhood Stabilization Program was created to provide emergency assistance to communities affected by the growing foreclosure crisis in an effort to stabilize communities and prevent blight. Through this program, the State of New Jersey is eligible to receive $51.4 million dollars to be used across the state.
On Monday, November 3, 2008, the New Jersey Department of Community Affairs published information about the proposed structure of the New Jersey Neighborhood Stabilization Program. All NSP grantees have a December 1st deadline for submitting proposals to the Department of Housing and Urban Development which outlines how the funds will be spent. The Department of Community Affairs has released a draft proposal which outlines a preliminary budget for the state program. The preliminary budget includes:
$5.1 million – Administration
$23 million – Acquisition
$4.6 million – Demolition
$13.8 million – Rehabilitation
$4.1 million – New Construction
$463,236 – Redevelopment for non-residential uses
A percentage of the acquisition budget will be used to create land banks according to the proposals received. $12.9 million of the total funding will be used specifically to aid households earning 50% of the area median income or less.
In addition to the proposed budget of the program, the draft action plan also outlines the Department of Community Affairs methods for determining areas of greatest need and provides maps of the areas designated as high priority communities. Areas not specifically identified in the draft proposal may also apply for funds but must provide an explanation of how they fit in with the DCA priorities outlined.
In mid – late November, the Department of Community Affairs will issue an RFP soliciting proposals for the use of NSP funds. DCA will accept proposals from local units of government, nonprofit and for-profit developers. All proposals must contain proof of municipal support with greater weight given to those proposals that indicate the active involvement of local government.
The DCA proposal is open for public comment until Wednesday November 19, 2008. To view the full proposal and obtain information about where to send comments, click here.
To view a summary of the state program click here.
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