Neighborhood Stabilization Program


The Neighborhood Stabilization Program (NSP) was established to stabilize communities that have suffered from foreclosure and abandonment. It provides assistance to cities, counties and housing non-profit organizations to acquire and redevelop foreclosed properties that might otherwise become sources of blight within their communities.

NSP-1 was authorized under Title III of the Housing and Economic Recovery Act of 2008. The United States Department of Housing and Urban Development (HUD) administers NSP funds. Kentucky's allocation of $37.4 million was awarded to 22 cities, counties and non-profit housing agencies. NSP funds were used to purchase foreclosed or abandoned properties, which were then rehabilitated, resold or redeveloped in order to stabilize neighborhoods and stem the decline of property values of neighboring homes.

NSP-3 funds are the third round of NSP grants that HUD made available to all states and select units of local government. NSP-3 funds are authorized under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) of 2010. HUD has allocated NSP-3 funds on a formula basis where all states, including Kentucky, received a minimum allotment of $5 million of NSP-3 funds. HUD is requiring that these funds be targeted to communities with the most severe neighborhood problems associated with the foreclosure crisis. Kentucky was able to fund six projects with NSP-3.

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General Program Information: NSP-1

NSP-1 Award Summary (.pdf - 19 kb)
NSP-1 Quarterly Reports
NSP-1 Substantial Amendment/Action Plans

General Program Information: NSP-3

NSP-3 Award Summary (.pdf - 12 kb)
NSP-3 Quarterly Reports
NSP-3 Substantial Amendment/Action Plans

Forms and Documents

Kentucky NSP Guidelines (.pdf - 134 kb)
Fair Housing/Equal Opportunity/Section 3 Documents
Household Underwriting Forms
Loan Documents
Project Management Forms

Training Resources

KY Fair Housing/Affirmative Marketing Presentation Slides (.pdf - 146 kb)
KY Fair Housing/Affirmative Marketing Presentation Webinar (.avi - 91957 kb)
KY Income and Assets Training Webinar (.wmv - 119894 kb)
KY Income and Assets Verification Presentation Slides (.pdf - 10452 kb)
KY URA Workshop Presentation Slides (.pdf - 65 kb)
KY URA Workshop Presentation Webinar (.avi - 64551 kb)
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Neighborhood Stabilization Program Partner Information

Need information on other housing programs? Contact:

Kentucky Housing Corporation
U.S. Department of Agriculture
U.S. Department of Housing and Urban Development
HUD-Approved Housing Counselors

Facing Foreclosure?

NSP funds cannot be used to prevent foreclosure. If you are a struggling homeowner, contact the Kentucky Homeownership Protection Center at or call (866) 830-7868.