Neighborhood Stabilization Program (NSP),

Since announcing our Neighborhood Stabilization Program (NSP), IHCDA has received many positive responses, but also a bevy of questions about the initiative and how Hoosiers qualify.

The federal Neighborhood Stabilization Program (NSP) funds are Indiana's share of $3.92 billion appropriated to all 50 states and more than 250 cities and counties to assist with national foreclosure problems. The state developed a plan to distribute approximately $50 million to local units of government to assist with neighborhood redevelopment needs, and $31 million to be maintained in a fund that would be made available to low- and moderate-income individuals and families who choose to purchase abandoned and foreclosed homes through the Market Stabilization Fund.

· IHCDA will make this funding source available to home buyers who intend to occupy the home themselves, in an effort to stimulate the housing market and encourage asset development among Hoosiers.

· IHCDA will utilize our single-family participating lenders, the Indiana Association of REALTORS, HomeEC certified housing counseling agencies and other partners to provide marketing and outreach to potential eligible homebuyers for this funding.

· Through this program, IHCDA will offer up to $15,000 (not to exceed 20% of purchase price) to assist homebuyers with the acquisition and/or rehabilitation of a foreclosed residential property. Matching funds up to $10,000 may be provided by the Federal Home Loan Bank.
We have been out in communities around the state talking to lenders and realtors about this exciting new homebuyer opportunity. If you or your clients would like to learn more about the Market Stabilization Program, please visit our website's "Homebuyer" section. More details about the program can be found on our website, including income limits, a downloadable brochure, and a link to IndianaHousingNow.org where interested parties can type the address of a foreclosed home to see if it qualifies under this program.

Benefits of New Housing Initiative Are Numerous

Earlier this month I was pleased to announce a new program that not only addresses the problem of vacant foreclosed homes, but also helps Hoosiers realize home ownership.
The Market Stabilization Program will make the dream of home ownership a reality for many Hoosier families across the state. Under this new program, low to moderate income Hoosiers who buy foreclosed homes and use them as their primary residence, may be eligible to claim up to $25,000 for a down payment or rehabilitation. The Indiana Housing and Community Development Authority would provide up to $15,000 and the state's partner, Federal Home Loan Bank, would provide up to $10,000.

The benefits of motivating buyers to purchase foreclosed homes are multiple, from removing blight to spurring economic development to providing families with a sound investment.
Indiana is unique in using the funds from the federal Neighborhood Stabilization program to develop a state-wide program to deal with foreclosed homes. Most states are sending all of the federal funds to local governments. Indiana communities will still receive more than $50 million from the state to address any redevelopment needs, but a portion has been set aside for the new housing initiative. First time homebuyers or buyers who haven't owned a home in three years can also take advantage of the federal government's $8,000 tax credit with the combined incentives, there really hasn't been a better time to purchase a home.

Last year, we assisted nearly 3,000 families achieve the American Dream through our existing programs, but with this new program we believe we have an opportunity that exceeds all previous efforts. It is my hope that this new program opens several new windows of opportunity for many Hoosier families.

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