One key question on the minds of many Americans today (regardless of your political lean) is: "When am I going to benefit from the stimulus program my tax dollars have paid for?"  Well, today we have a partial answer - the Neighborhood Stabilization Program.

The stimulus program designed to directly benefit the “average” American was the American Recovery and Reinvestment Act of 2009 passed by Congress on February 13, 2009. The stated goal of the Recovery Act was threefold:

• Create new jobs as well as save existing ones
• Spur economic activity and invest in long-term economic growth
• Foster unprecedented levels of accountability and transparency in government spending

From the Recovery Act came the main housing stimulus program – The Neighborhood Stabilization Program. The Neighborhood Stabilization Program is a grant program awarded by the U.S. Department of Housing and Urban Development and administered locally by the City of Memphis Division of Housing and Community Development. The goal of the program is to reduce blight. The State of Tennessee received almost $50 Million dollars for NSP, with $11.5 Million going to the City of Memphis and $2.7 Million to Shelby County. The city chose to concentrate its efforts in the neighborhoods with the greatest need. The following zip codes are included in the NSP program:

NSP Zip Codes
38127	38106
38111	38109
38116	38118
38115	38128
38114	38141

Who can benefit?

NSP will sell, lease, or lease purchase renovated homes in any of the above mentioned zip codes to families with incomes at or below 120% of Shelby County's median income , which was $47,386 according to the 2000 Census. Therefore, if your family income is $60,000 or less, you should consider NSP for as a potential route to homeownership.

A copy of the Neighborhood Stabilization Program Property Resale Procedures is attached below and available here.

 

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Neighborhood Stabilization Program
Property Resale Procedures
1
Overview
The City of Memphis is in the process of acquiring foreclosed properties for the City’s
Neighborhood Stabilization Program (NSP). The properties are for resale to individuals
or families that have incomes of 120% or below the area median income for Shelby
County. The NSP properties will be rehabilitated and brought up to code standards for
livability before any of these homes can be purchased. The acquired properties offered
for resale must be located in the following zip codes: 38106, 38109, 38111, 38114,
38115, 38116, 38118, 38127, 38128 and 38141.

All NSP properties for resale will be listed on the City’s website as they become
available for purchase. The purchase of these properties will be on a first-come firstserve
basis and is dependent upon the applicant’s ability to meet income eligibility and
other program requirements.
Although a particular property is selected by the applicant, it may not be available at the
time the applicant completes all requirements of the program. If the property selected is
no longer available, the applicant may select another City of Memphis NSP Property to
purchase. Program requirements include income eligibility, housing counseling, and a
processed mortgage loan application from a reputable mortgage lender.
NSP Property Resale Process

– Applicants must contact the Housing Finance Department (HFD) at
901.576.7474. Applicants must provide identification verification and income
eligibility documentation to the Housing Finance Analyst (HFA) to determine
if the applicant is eligible to participate in the city’s NSP Program. Applicants
must continually monitor the City of Memphis NSP properties listed on the
City’s website to identify available properties to purchase.
– The following information must be provided to the Housing Finance Analyst
by fax or mail before the applicant can receive counseling:
???? Current check stub, not more 30 days old
???? Social security income verification, not more than 6 months
old
???? 2008 Income Tax Returns for self-employed (* Good until
April 15, 2010)
???? State issued identification
– If the applicant is determined to be income eligible, the HFA will assign the
applicant to one of the HUD/NSP certified housing counselors to complete a
minimum of eight (8) hours of housing counseling. All applicants must
Neighborhood Stabilization Program
Property Resale Procedures
2
complete the housing counseling to be eligible to purchase one of the city’s
NSP properties.
– The applicant must contact their assigned housing counseling agency to
schedule an appointment for counseling. If applicant has not contacted the
housing counseling agency within 30 days, their application will be
withdrawn from the city’s NSP program.
– The housing counseling agency is responsible for providing a certificate of
completion with recommendations to the Housing Finance Department after
the applicant has completed the required eight (8) hours of housing
counseling.
– After the applicant has completed their minimum housing counseling
requirements (8 hours) and has a certificate of completion stating the
“applicant is mortgage ready”, the applicant must contact the HFD
Department at 901.576.7474. If the applicant’s housing counseling certificate
states he/she is “not mortgage ready” the applicant must contact their HFA to
determine what additional NSP home purchase assistance may be available..
– If the applicant is “mortgage ready”, the HFA will provide a list of mortgage
lenders that the applicant can contact in order to submit an application for a
mortgage loan. The applicant may contact any other reputable mortgage loan
company of their choice, or apply through the City’s NSP Mortgage Loan
Program.
– If the applicant applies through a bank or mortgage company, the applicant
must provide the HFA the original decision letter (approved or declined)
drafted by the mortgage loan company. This letter must be signed and dated
by an authorized official of the mortgage loan company that the applicant
submitted their application to, and not be more than 12 months old.
– Once the applicant has received a decision on their mortgage loan application
(approved or declined) they must contact the HFD Department at
901.576.7474 to determine what additional NSP home purchase assistance
may be available.

Revised Feb 2010

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