Overview

The federally-funded Neighborhood Stabilization Program (NSP) is providing emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities.

The Neighborhood Stabilization Program provides grants to every state and certain local communities, including Osceola County, to purchase foreclosed homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of housing values of neighboring homes. The program is authorized under Title III of the Housing and Economic Recovery Act of 2008.

This funding will assist the citizens of Osceola County by providing homeownership opportunities at a continual affordable market rate. We are currently accepting applications for the Neighborhood Stabilization Program. The following requirement and activities are eligible under NSP guidelines.

1. Potential recipients must become a primary resident of Osceola County, Florida
2. Funding can only be used to assist in buying the primary residence homestead.
3. All units purchased must be foreclosed and bank owned REO at the time of purchase.
4. The REO units purchased as primary residence must be located within the county's Areas of Greatest Need. Maps of eligible areas can be obtained through Human Services and include areas of St. Cloud, Poinciana, BVL and Kissimmee.
5. All applicants must meet the minimum Section 8 HUD approved income limits and provide documentation to prove eligibility.
6. A second mortgage note and lien on the property will be required for the assistance. No interest, no payments.
7. A soft-second deferred payment loan DPL of up to $60,000 will be available through a deferred payment loan agreement with a lien.
8. Focus shall be on units that require minimal to no repairs.
9. Homebuyer counseling conducted by a HUD certified agency is required for all qualified applicants. Minimum of 8 hours.
10. Homebuyers must contribute at least $1,000 towards the purchase process.
11. Up to 20% of down payment, primary mortgage reduction, and in some cases, repairs and closing may be eligible. Awards will be made on case-by-case basis.
12. You must apply, qualify and obtain preapproval letter for financing for a primary mortgage in order to receive approval of homebuyer assistance. Approval letter must come from an NSP-approved lender.

Applications may be picked up at Osceola County Human Services Monday through Friday, 9:00 a.m. to 4:00 p.m. Completed applications are to be submitted at the same location.

To receive application by mail or e-mail, call Beth Eimers at 407-742-8404 or Liberty.Eimers@osceola.org or Wonkiasha Washington at 407-742-8453 or Wonkiasha.Washington@osceola.org between 10:00 a.m. and 3:00 p.m. with any questions regarding the application process.

On July 30, 2008, President Bush signed into law the Housing and Economic Recovery Act of 2008 to address the severe housing crisis. Title III of the Act appropriates $3.92 billion of grant funds under the Neighborhood Stabilization Program NSP for states and local governments to purchase and redevelop abandoned or foreclosed properties. The Housing and Economic Recovery Act of 2008 directed the United States Department of Housing and Urban Development (HUD) and the Florida Department of Community Affairs (DCA) to target funding to areas with the greatest needs based on the extend of foreclosures, subprime mortgages, and mortgage delinquencies and defaults.

NSP grantees develop their own programs and funding priorities. However, NSP grantees must use at least 25% of the funds appropriated for the purchase and redevelopment of abandoned or foreclosed homes or residential properties that will be used to house individuals or families whose income does not exceed 120% of area median income.

Additional attachments including eligibility income criteria for applicants and the county's proposed plan are included for your information.

For more information, contact Beth Eimers at 407-742-8404 or Wonkiasha Washington at 407-742-8453.