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NSP2 UPDATE: July 2009

Neighborhood Stabilization Program 2 (NSP2) Application

The Metropolitan Development Housing Agency, The Housing Fund, Woodbine Community Organization and Urban Housing Solutions are applying for a grant amount of up to $36,000,000 under the Neighborhood Stabilization Program 2(NSP2) Allocation. The proposed activities will include establishing a financing mechanism, acquisition, rehabilitation and resale of abandoned or foreclosed residential properties and redevelopment of demolished and vacant properties to be performed within the North, East, South and Southeastern areas of Nashville, as defined in the funding application. Additional information is available for review; please call 615-252-8422.

The public is invited to comment on the use of NSP2 funds by email at All comments on the draft NSP2 application must be submitted in writing and received by 4:00 PM on July 13, 2009.

NSP UPDATE: May 2009

MDHA has issued a Request For Proposal (RFP) for Neighborhood Stabilization Program (NSP). MDHA has set aside NSP funds for affordable rental housing developments to serve households earning less than 50% of the area median income. Proposal forms may be picked up between 7:30 a.m. and 4 p.m. daily, Monday through Friday at the Metropolitan Development and Housing Agency’s Construction Office, 712 South Sixth Street, Nashville, Tennessee or by contacting Ron Chenault email:

Proposals will be received until 2 p.m. on May 26, 2009, at the MDHA Construction Department Office.


NSP UPDATE: February 19, 2009

MDHA hosted an NSP Informational Meeting regarding the funds set aside to house individuals and families at or below 50% of Area Median Income.

Please e-mail questions to:


The Neighborhood Stabilization Program (NSP) is part of the Housing and Economic Recovery Act of 2008.  $3.92 billion has been made available nationwide, to state and local governments. This one-time grant program is being allocated under the Community Development Block grant program by the U. S. Department of Housing and Urban Development (HUD) as emergency assistance to redevelop abandoned and foreclosed homes.

The Metropolitan Development and Housing Agency (MDHA) is charged with administering the federal entitlement grants from HUD on behalf of Metropolitan Nashville and Davidson County. Preparation of the Consolidated Plan is a requirement for Metropolitan Nashville to receive funds through the Community Development Block Grant (CDBG), the HOME Investment Partnerships (HOME), the Emergency Shelter Grant (ESG) and the Housing Opportunities for Persons with AIDS (HOPWA) programs.

The NSP Substantial Amendment to the FY 2008 Annual Update of the Five-Year Consolidated Plan for housing and community development was submitted to HUD for review December 1, 2008.

The NSP Substantial Amendment Update submitted to HUD.
*Updated 12/4/08

If you have any comments or questions please submit them via e-mail at For additional information or to request reasonable accommodation, contact 615-252-8508.

This webpage will be updated regularly with NSP information as it is available.


HUD published their official notice regarding the Neighborhood Stabilization Program on September 29, 2008.  MDHA is required to submit to HUD a funding application and action plan by December 1, 2008.  MDHA will have 18 months from the receipt of the resources to obligate or commit the resources.

NSP Resources

Additional information on the NSP program can be found:

For more information about the State of Tennessee’s NSP program, please see:

HUD's Methodology for Allocating Funds

HUD's Methodology for allocating the Supplemental CDBG Appropriation:

The Housing and Economic Recovery Act of 2008 calls for allocating funds to States and local governments with the greatest need, as determined by:

  1. The number and percentage of home foreclosures in each State or unit of general local government;
  2. The number and percentage of homes financed by subprime mortgages in each State or unit of general local government; and
  3. The number and percentage of homes in default or delinquency in each State or unit of general local government."

To ensure these funds have the maximum impact possible and are targeted to States and local communities with the highest needs, HUD analyzed data from several different sources, including:

  • The Mortgage Bankers Association National Delinquency Survey data on the rate of foreclosure starts in 2007 and 2008, as well as current rates of subprime loans and loans in default or delinquency at the state-wide level;
  • Census Bureau data from 2006 on the number of owner-occupied mortgages in each state to ensure that all states are treated equally;
  • Federal Reserve's Home Mortgage Disclosure Act (HMDA) data on owner-occupied and investor mortgages made between 2004 and 2006, as well as the percent of those loans that are high-cost;
  • Vacancy data from the U.S. Postal Service to determine areas where abandonment of homes due to foreclosure is more likely;
  • Public data from the Office of Federal Housing Enterprise Oversight (OFHEO) to measure home price declines; and
  • Labor Department data on the rate of unemployment at the city and county level.
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