Neighborhood Stabilization Program
This program is no longer active.
The federally-funded Neighborhood Stabilization Program 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 (NSP) 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.
Osceola County will be receiving approximately $8,000,000 of NSP funding for this program for downpayment and related assistance to income qualified households.
This funding will assist the Citizens of Osceola County by providing Homeownership opportunities at a continual affordable market rate. This advertisement serves the purpose of extending the deadline for applications from eligible LMMI households who seek a single family unit as a primary residence within Osceola County. The following requirements and activities are eligible under NSP guidelines:
- Potential recipients must become a primary resident of Osceola County, Florida.
- Funding can only be used to assist in buying the primary residence (homestead).
- All units purchased must be foreclosed and bank owned (REO) at the time of purchase.
- 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 includes areas of St. Cloud, Poinciana, BVL and Kissimmee.
- All applicants must meet the minimum Section 8 HUD approved income limits and provide documentation to prove eligibility.
- A second mortgage note and lien on the property will be required for the assistance (no interest, no payments).
- A minimum of 150 units will be acquired (and in some cases rehabilitated) through assistance to income eligible applicants (less than 120% of Area Median Income (AMI), or LMMI).
- A soft-second deferred payment loan (DPL) of up to $60,000.00 will be available through a deferred payment loan agreement with a lien.
- Focus shall be on units that require minimal to no repairs.
- Homebuyer counseling conducted by a HUD certified agency is required for all qualified applicants (minimum 8 hours).
- Homebuyers must contribute at least $1,000 towards the purchase process.
- Up to 50% of down payment, primary mortgage reduction, and in some cases repairs and closing cost may be eligible. Awards will be made on case-by-case basis.
- You must apply, qualify and obtain and preapproval letter for financing for a primary mortgage in order to receive approval of homebuyer assistance.