January 21, 2010 — After passing the Housing and Economic Recovery Act of 2008 (HERA) and the American Recovery and Reinvestment Act (ARRA) in 2008, the U.S. Department of Housing and Urban Development (HUD) began administering the Neighborhood Stabilization Program to help stabilize neighborhoods impacted by foreclosed and abandoned homes.  Under HERA, funds in the amount of $3.9B were allocated to local jurisdictions with the greatest need based on home foreclosures, subprime mortgages and homes in default or delinquency.  ARRA then allocated an additional $1.93B in funding (NSP 2) to be awarded to states, units of local government and nonprofit entities or a consortia of nonprofit entities through an application and scoring process that considered an applicant’s capacity, leveraging potential, and concentration of investment to achieve neighborhood stabilization.

On January 14, 2010, HUD announced the awards of these NSP 2 funds (please click link).

Please see our January 9, 2009 and February 20, 2009 client alerts for a further description of the NSP legislation.

Kutak Rock LLP has assembled a team of attorneys specializing in this new program to assist clients across the country to develop strategies to access and utilize these funds.  Our attorneys have extensive experience working closely with HUD on this new program and all aspects of the program regulations.  Please contact us to learn more about the Neighborhood Stabilization Program and the opportunities that it presents.

ATLANTA

  Drew Marlar (404) 222 4662
  Michael Kazamias (404) 222 4617
  Cory Thompson (404) 222 4669

CHICAGO

  Jay Gilbert (312) 602 4100

DENVER

   Nathan Humphrey (303) 292-7881

OMAHA

  Jill Goldstein (402) 346 6000
  John Wagner (402) 346-6000

www.kutakrock.com