Neighborhood Stabilization Program Round 3 (NSP3)

On October 13, 2010, the Department of Housing and Urban Development (HUD) issued a Notice of Formula Allocations and Program Requirements for Neighborhood Stabilization Program Formula Grants [Docket Number FR-5447-N-01]. This notice advised the public of the allocation formula and allocation amounts, the list of grantees, alternative requirements, and the waivers of regulations granted to grantees under Section 2301(b) of the Housing and Economic Recovery Act of 2008, as amended, and an additional allocation of funds provided under Section 1497 of the Wall Street Reform and Consumer Protection Act of 2010 for additional assistance in accordance with the second undesignated paragraph under the heading Community Planning and Development - Community Development Fund in Title XII of Division A of the American Recovery and Reinvestment Act of 2009, for the purpose of assisting in the redevelopment of abandoned and foreclosed homes.

Principles of Program

This Notice represents the third round of Neighborhood Stabilization Program funding and is referred to as NSP3. HERA provided the first round of formula funding (NSP1) to States and units of general local government; the City currently is receiving and managing $2,113,781 of NSP1 grant funds through the Department of Community Affairs.

The NSP3 program aims to integrate the following principles:

  • Assure compliance with NSP "deep targeting" requirements
  • Build inclusive and sustainable communities free from discrimination
  • Coordinate planning and resources
  • Ensure accountability
  • Ensure longest feasible continued affordability
  • Leverage resources and remove destabilizing influences
  • Rapidly arrest decline
  • Retain CDBG distinctive requirements
  • Set goals
  • Support projects that optimize economic activity
  • Target and reconnect neighborhoods


HUD is treating entitlement grantees’ use of NSP3 grant to be a substantial amendment to its current approved Consolidated Plan and 2010 Action Plan. The NSP3 grant is a special CDBG allocation to address the problem of abandoned and foreclosed homes. Treating NSP3 as a substantial amendment will expedite the distribution of funds, while ensuring citizen participation on the specific use of the funds. To receive NSP3 funding, the City must submit its substantial amendment to its Action Plan to HUD in accordance with the funding Notice by March 1, 2011. HUD encourages each grantee to carry out its NSP3 activities in the context of a comprehensive plan for the community’s vision of how it can make its neighborhoods not only more stable, but also more sustainable, inclusive, competitive, and integrated into the overall metropolitan fabric, including access to transit, affordable housing, employers, and services.

Application of Funding

At its regular meeting on February 8, 2011, City Council provided advisability to pursue the NSP3 grant and authorized the submittal of the NSP3 grant application (substantial amendment) to HUD as presented. A subsequent public hearing was held on April 26, 2011, on the proposed amended Plan to cancel one project (550 S Brown) and increase funding to different project (NBC Rental Housing) as follows:

  • Move the required set-aside (25%) low-income funds in the amount of $251,432.75 from the 550 S Brown Avenue rental project as a result of the project’s cancellation, to North Brevard Charities Sharing Center, Inc. (current NSP1 developer) Rental Housing project;
  • Establish the Indian River City Target Area as an additional "area of greatest need" in accordance with HUD’s data sources in which the set-aside funds can be utilized in, and providing up to 3 affordable rental units to low-income households;
  • Increase the number of low-income set-aside rental units from 1 at the canceled 550 S Brown Avenue project site to 2, possibly 3, at scattered sites within the two designated target areas:
    • Indian River City
    • South Street

View the Application

In accordance with the City’s Citizen Participation Plan, the City’s NSP3 grant application (substantial amendment) is available for review at the City’s Neighborhood Services Department located at:
725 S De Leon Avenue
Titusville, FL 32780