During the past few years, communities have been impacted across the country with mortgage foreclosures and declining property values. In response, Congress passed the Housing and Economic Recovery Act (HERA) in July 2008. The law created a new Neighborhood Stabilization Program (NSP).The purpose of the NSP is to provide targeted assistance to state and local governments to acquire and rehabilitate foreclosed upon residential properties that might otherwise become a source of blight within communities. HERA appropriated $3.92 billion in NSP funding to communities nationwide.

ST. PETERSBURG NEIGHBORHOOD STABILIZATION PROGRAM

The city of St. Petersburg will be receiving $9,489,962 under the NSP. HERA provides that these funds be generally treated as Community Development Block Grant (CDBG) funds. Therefore the city amended its Annual Action Plan to describe the implementation of the program locally. The complete Amendment can be reviewed at the following link: http://www.stpete.org/housing/housedoc.asp.

 Target Areas (HUD data)

• Where there are the greatest percentage of foreclosures,
• Where there are the highest percentage of homes financed by sub-prime mortgages,
• or, areas likely to face a significant rise in the rate of home foreclosures.

Non-profit Housing Providers

• The City will partner with qualified non-profit agencies to acquire and provide affordable multi-family rental housing for households whose incomes are below 50% of area median income (AMI).
  
• The city expects to make a minimum of $2,374,741 of NSP funding available for this portion of the plan. The Request for Qualifications document RFQ 6821 can be viewed at: http://www.stpete.org/purchase/solbidn.asp

For Realtors: Realtors may recommend properties for purchase by the city, if they meet the following qualifications

Property qualifications:

• Foreclosed
• Bank owned
• Unoccupied
• Located in Areas 1, 2 and 3 on the map
• City may pay 99% of the appraised market value.

Contact:
Mike Psarakis
Senior Real Estate Coordinator
Tel: 727- 893-7794
Email: Mike.Psarakis@stpete.org

Additional Guidelines:

• The city is prepared to pay usual and customary closing costs, including the required state certified appraisal fee.
• Once acquired and renovated by the city, the houses will be sold to eligible households with incomes at or below 120 percent of area median income who will occupy the home as their primary residence.

Homebuyer Assistance Information and Eligibility Requirements:

• Homebuyer Loan Assistance Program
• A+ Housing Program (for public school teachers)
• Police in Neighborhoods Program (PIN)

Additional Resources:

• The Federal Register of October 6, 2008 contains information about the NSP,
• Additional information can be viewed on HUD's Website 
• Local HUD Approved Counseling agencies