NEW YORK – December 17, 2008 – (RealEstateRama) – The New York State Housing Finance Agency (HFA) today issued a Request for Proposals to enable local governments, nonprofits and other providers to apply for $64.5 million in State and Federal funds to buy, renovate and then resell or rent foreclosed and abandoned properties.
The funds, provided under the Neighborhood Stabilization Program (NSP), are aimed at helping neighborhoods hardest hit by the foreclosure and subprime crisis. More than $54.5 million will come from Federal funds authorized by the Housing and Economic Recovery Act of 2008 passed by Congress in July. Another $10 million in State funds will be made available by the New York State Affordable Housing Corporation (AHC), a subsidiary of HFA. HFA is overseeing the distribution of NSP funds in New York State.
“The Neighborhood Stabilization Program is a vital tool in our efforts to protect communities at risk and to confront the growing problem of vacant and abandoned homes in New York,” said Priscilla Almodovar, President and CEO of HFA and AHC. “This program reinforces Governor Paterson’s goal of utilizing our scarce resources as efficiently as possible during these difficult economic times. I encourage local governments and not-for-profits to consider applying for these funds.”
Proposals must be submitted to HFA by February 10. A copy of the RFP is available at the agency’s website: www.nyhomes.org.
It is expected that most of the NSP funds will be used to purchase and rehabilitate foreclosed and abandoned residential properties, as well as to redevelop vacant sites. A limited portion of the funds will be used for demolition and to create local land banks. However, these uses must be part of comprehensive plans for revitalization or redevelopment of the sites for affordable housing.
Under Federal guidelines, priority will be given to areas with the greatest percentage of home foreclosures, areas with the highest percentage of homes financed with subprime mortgages, areas with the greatest amount of vacant homes, and areas likely to face a significant increase in the rate of home foreclosures.
The guidelines, issued by the U.S. Department of Housing and Urban Development (HUD), also state that all the NSP funds must be used to benefit households with incomes below 120% of the local Area Median Income. Additionally, one-quarter of the funds will be set aside to assist households that have up to 50% of the Area Median Income.
The following criteria will be among those used to award allocations:
• Assist at least 10 units;
• Include a strategy for neighborhood stabilization, including addressing factors that could contribute to future foreclosures;
• Include high-quality pre-purchase homeowner counseling;
• Leverage substantial additional resources;
• Assist multiple municipalities and multiple locations;
• Demonstrate experience in supervising and administering block grant programs;
• Incorporate “green” building and energy efficiency improvements;
• Include long-term affordability;
• Include supportive housing to help homeless persons live independently.
HUD has established NSP cap allocations for specific counties:
| COUNTY | INITIAL FUNDING ROUND CAPS |
| Albany Broome Delaware Dutchess Erie Monroe Nassau Niagara Oneida Onondaga Orange Rensselaer Rockland Schenectady Suffolk Westchester New York City Other counties |
$1,128,350 $617,122 $661,608 $2,147,246 $3,804,344 $3,357,581 $1,697,577 $363,414 $555,962 $1,741,196 $1,056,886 $522,158 $1,260,206 $935,147 $3,529,949 $4,555,214 $5,301,213 $250,000 per county |
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The NYS Housing Finance Agency was created in 1960 to sell bonds to finance the construction and rehabilitation of multi-family affordable rental housing in New York State.
AHC, a subsidiary of the HFA, was established in 1985 to promote homeownership by low- and moderate-income households. Financial assistance approved annually by the New York State Legislature, combined with other private and public investment, is used for the construction, acquisition, rehabilitation and improvement of owner-occupied housing.
Contact: Philip Lentz
Director of Communications
212-872-0679
plentz (at) nyhomes (dot) org
