FPR Tool Kit: REALTOR® Strategies for Advancing Neighborhood Stabilization Program Goals

A second round of funding for the Neighborhood Stabilization Program (NSP) was included in the American Recovery and Reinvestment Act (ARRA) signed into law on February 17, 2009. This $2 billion in NSP funds is in addition to the initial $3.92 billion in NSP funds provided by the Housing and Economic Recovery Act of 2008 (HERA) that became law in July 2008.

This source of federal funding is an important element in the strategic planning effort of local communities to address neighborhood deterioration and declining property values linked to foreclosure, vacancy and abandonment.

NAR believes that REALTORS® are an important part of the neighborhood stabilization team and are well equipped to assist state and local officials to plan strategically in their efforts to stabilize cities, towns and neighborhoods impacted by the foreclosure crisis. The REALTOR'S® expertise in analyzing housing markets, their hands-on daily exposure to neighborhood conditions, and their observation of buyers/sellers needs are all important factors in strategic planning to address, and to target, foreclosure response initiatives.

The flexible FPR funds can be used to hire consultants and/or grant writers to assist REALTOR® Associations in working with local communities in the NSP program application process. This resource exemplifies just one of the many opportunities for partnerships which in this case highlights the important connection between the REALTOR® community and the states, local governments and non-profit entities that are eligible to apply for NSP funds.

The participation of the REALTOR® community in contributing their expertise and resources in understanding market conditions on a neighborhood by neighborhood scale will enhance the information used to strategically focus public or private funds in addressing foreclosure mitigation efforts and overall community stabilization.

The timeframe for accessing this NSP II funding is short so REALTORS® interested in partnering with communities in the NSP II application process need to move quickly. The ARRA law requires that the HUD Secretary must publish criteria for NSP II within 75 days of enactment or by (April 30, 2009 est); followed by submission of applications with 150 days of enactment (July 15, 2009 est). HUD is required to obligate all funds within one year of enactment (February 17, 2010).