The public is invited to view and provide comments regarding the draft of the amended Neighborhood Stabilization Program (NSP) Plan.
Pierre, SD – August 18, 2009 – (RealEstateRama) — The Housing and Economic Recovery Act of 2008 provided an appropriation of funds for emergency assistance for redevelopment of abandoned and foreclosed homes and residential properties. The funding known as Neighborhood Stabilization Program is considered Community Development Block Grant (CDBG) funds and is administered by South Dakota Housing Development Authority. South Dakota is entitled to receive $19.6 million in funding under the Neighborhood Stabilization Program. The NSP Plan is a substantial amendment to South Dakota’s current approved Consolidated Plan and annual action plan and it was approved by US Department of Housing and Urban Development January 2009.
The Neighborhood Stabilization Program Plan details how South Dakota will allocate its NSP funds. Eligible activities under NSP includes funding for acquisition and rehabilitation, for resale or rental, of single family homes or residential properties that have been abandoned or foreclosed; establishment of financing mechanisms for purchase and redevelopment of foreclosed upon homes or residential properties; funding to demolish blighted structures; and funding to redevelop demolished or vacant properties. Additional information on the Neighborhood Stabilization Program can be found on SDHDA’s website at www.sdhda.org.
There are federal and administrative changes that SDHDA would like to incorporate within its NSP administrative plan. The proposed changes to the Neighborhood Stabilization Program Plan are outlined as follows.
- The targeted areas are being removed and NSP funding may now be distributed to any geographic location in the state of South Dakota.
- The minimum required purchase discount for the NSP Program is amended to 1 percent (1%) for each foreclosed residential property purchased with NSP funds.
- NSP funding may not be used for acquisition costs unless the property has been foreclosed or abandoned.
- The NSP Plan may be amended by the SDHDA Board of Commissioners (Board), without public comment for administrative items and to reflect any changes necessary to comply with the Housing and Economic Recovery Act of 2008, the American Recovery and Reinvestment Act of 2009, or additional federal regulations affecting the Neighborhood Stabilization Program.
SDHDA will also begin accepting applications for NSP funding on a monthly basis until such time as no funds remain.
Written comments on these proposed changes will be accepted through 5:00 p.m. CDT, Wednesday, September 2, 2009. All interested parties are encouraged to present comments regarding these proposed changes. Written comments can be submitted via mail, fax (605-773-5154) or e-mail to peggy (at) sdhda (dot) org.
Copies of the plans, the proposed changes, and other NSP information are all available for distribution and may be obtained by accessing the SDHDA homepage at www.sdhda.org, by requesting a copy via e-mail to denise (at) sdhda (dot) org, by calling (605) 773-3181 (or 773-6107 TTY), or by writing to SDHDA at P.O. Box 1237, Pierre, SD 57501-1237. Alternative formats of the plans are available to persons with disabilities upon request.
The South Dakota Housing Development Authority (SDHDA) does not discriminate against any person because of race, creed, color, religion, sex, handicap, familial status, or national origin.
