The U.S. Congress appropriated $3.92 billion for the NSP in July 2008 for state and local jurisdictions across the country.  The City of Charlotte submitted a NSP Grant Application to the U.S. Department of Housing and Urban Development (HUD) and received approval for $5,431,777 in NSP Funds. 

The City also submitted a State of North Carolina NSP Application to the North Carolina Department of Commerce and was awarded an additional $2,625,000.

The City has committed $1 million of these funds for down payment and rehabilitation assistance.  These funds are available to qualified buyers, in designated neighborhoods for a limited amount of time.

The combined HUD and State grants require a minimum of $2,145,444 (27%) of the $8,056,777 awarded to the City be used for development serving households earning 50% or less than the area median income.

Non-Proft Developer Proposals
If you are a non-profit developer interested in building affordable housing with NSP funding, click here.


Program Features and Requirements

·         Down payment assistance of up to $10,000 for qualified buyers in designated neighborhoods

·         $15,000 available for rehabilitation and repair of foreclosed and abandoned property

·         Pre-purchase home buyer education

·         Families with incomes that are 120% or less of the median income

·         Must complete a pre-purchase home-buyer education program

·         The home must be the family's primary residence and in a designated neighborhood

·         The purchaser must be a first time home-buyer (not owned any property in the last 3 years)

·         Maximum purchase price of the home is $147,000

10 Easy Steps TO BUY a FORECLOSED HOME with NSP Down Payment & Rehabilitation Assistance

Step 1)  Complete homebuyer certification class from HUD approved housing counseling agency like Community Link (800) 977-1969. The agency must sign and date the NSP certification letter in addition to your homebuyer certification.  Both documents should be included in your loan documents sent to the City by your lender.

Step 2)  Contact a registered lender to see how much home you can afford.  If your lender is not already registered, a simple verification will need to be completed by the Lender.  Let your lender know that you will be using City funds for down payment and rehabilitation if you purchase an eligible foreclosed or abandoned home in an eligible neighborhood.

Step 3)  Find a home – identify a foreclosed or abandoned home in an eligible neighborhood that is less than $147,000.  Use the address search to see what neighborhood your home is in.  The "NSA" listed in your search result is the neighborhood your property is located in.  Check to make sure the same NSA is on the eligible neighborhood list.  Please remember that the purchase price must be 1% less than the appraised value, and the buyer is required to pay at least $500 toward the purchase of the property. 

Step 4)  Have your lender send us your loan information with the address of the home you would like to purchase. Remember, the City will provide up to $10,000 for down payment assistance.

Step 5)  The City will order a minimum housing code inspection of the home and send your real estate agent and your lender a list of mandatory repairs to bring the home up to code.

Step 6)  You should work with your real estate agent to find a qualified contractor to give you a quote for rehabilitating the home.  All the mandatory items in the minimum housing code inspection must be brought up to code. You may also include cosmetic items like – new carpet, paint, appliances, siding, etc.  The City will give you up to $15,000 for these rehabilitation activities.

Step 7)  You must send the rehabilitation quote to the City for approval. Once the rehabilitation quote and all other documentation are approved the City will contact your lender to proceed with closing.

Step 8)  You or your representative must pick up your loan package which includes your rehabilitation and down payment funds, loan agreement, deed restrictions, deed of trust, promissory note, and attorney closing instructions.  Identification must be presented in order to pick up your loan package.

Step 9)  At closing your attorney will hold the rehabilitation funds in escrow to pay your contractor when he completes your rehabilitation.  If your contractor requires multiple draws payment should be worked out with the attorney and City prior to closing.

Step 10)  Once your contractor has completed rehabilitation on your home you should contact the City. We will order a final inspection. If the inspection passes the City will instruct the closing attorney to release the rehabilitation funds from escrow directly to your contractor.

ALL DONE!

More Program Information
Neighborhood Stabilization Program Area Media Income Affordability Matrix
Geography Map
Eligible Neighborhoods
Address Search (Find NSA and cross reference with eligible neighborhood list above)
Inspection Request Form
Housing Counseling Certification Form-to be submitted along with Certificate from training Agency
Registered Lenders (April 2009)
HUD Certified Counseling Agencies
City Rehabilitation Standards- to be used as a standard for any rehab work funded

Lender Information
Guidelines for Subsidy
NSP Application
Appraisal Requirements
FAQ
Lender Agreement
Lender Agreement Cover Letter - Includes items required to be submitted with Lender Agreement.

NSP 2
In February of 2009, the U.S. Congress appropriated $1.92 billion for the Neighborhood Stabilization Program  under the American Recovery and Reinvestment Act of 2009 ("Recovery Act"). The new national competitive round of funding is known as "NSP 2." The City of Charlotte will apply with the North Carolina Department of Commerce – Division of Community Assistance as part of a statewide NSP 2 application. Please click the link to view the final application.

For additional information, contact Alvena Smith at 704-336-5615 Richard Payne at 704-336-2735 or Aisha Alexander at 704-336-2175.