Opportunity Information: Apply for FR 5321 C 01
Apply for FR 5321 C 01
- The Department of Housing and Urban Development in the recovery act sector is offering a public funding opportunity titled "Neighborhood Stabilization Program 2" and is now available to receive applicants.
- This funding opportunity was created on Jun 11, 2009 and posted on May 12, 2009.
- Applicants must submit their applications by Jul 17, 2009 PAPER SUBMISSION, PLEASE READ NOTICE CAREFULLY.. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).
- 1. You must be a state government, a unit of general local government, a nonprofit entity or consortium of nonprofit entities. You must demonstrate the capacity and experience to carry out a program of NSP2 activities. 2. Nonprofit entities are public and private nonprofit organizations, including governmental entities, that are organized under state, local or tribal laws for other than profit making activities. Public nonprofits include states, local governments, Indian tribes, and public housing authorities. 3. State and units of general local government are defined in the CDBG program in 42 U.S.C. 5202. 4. A consortium is defined as two or more private or public nonprofit organizations that collectively have the capacity and experience to carry out the proposed NSP2 activities in the target geography and that enter into an agreement to submit a single application for NSP2 funding. One organization must be designated as the lead applicant. The lead applicant must submit the application, and, if selected for funding, execute the NSP2 agreement with HUD and assume responsibility for the grant on behalf of the consortium in compliance with all program requirements. 5. An eligible applicant may have a for profit partner(s) who will assist in carrying out NSP2 activities. If you are applying with a for profit partner, you will submit a firm commitment executed and dated by each for profit partner with your application. All for profit partners must be identified in your application. The integrated application must reflect your programs as a single program including your partner(s) and may only briefly summarize the individual partners past experiences in factor 2. All other components of the application must reflect an overall program design. HUD will not consider individual program designs of partners in scoring an application. Second, prior to providing NSP2 funds to a for profit partner, you must carry out a cost analysis and enter into a separate written agreement with each such partner. The agreement must include the applicable requirements described in Appendix 1, paragraph U, and set forth your partner s responsibilities for performance and compliance with NSP2. 6. If you are a consortium, you will enter into agreements at two points. First, a consortium agreement, submitted with the application, must be executed by all consortium members. The agreement must require the members to cooperatively carry out the NSP2 program in the approved application, and must authorize one member to act in a representative capacity for all members of the consortium (lead member) and assume overall responsibility for ensuring that the consortium s NSP2 program is carried out in compliance with all NSP2 requirements. The consortium agreement must state that the consortium funding agreements will be executed no later than December 1, 2009. If the lead member is a private nonprofit organization, but the consortium members include a state, Indian tribe, or unit of general local government, the agreement must authorize the member state, Indian tribe, or unit of general local government to assume all responsibility for environmental review, decision making, and action for proposed projects within its jurisdiction on behalf of the consortium in accordance with the requirements of 24 CFR Part 58. All consortium members must be identified in your application. The integrated application must reflect all consortium members programs as a single program and may only briefly summarize the individual consortium members past experiences in factor 2. All other components of the application must reflect an overall consortium program design. HUD will not consider individual program designs of consortium members in scoring an application. Second, after selection, but before the grant is awarded, the lead member must enter into a separate consortium funding agreement with each member of the consortium.
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Opportunity Summary:
The Neighborhood Stabilization Program 2 (NSP2) grant opportunity is a U.S. Department of Housing and Urban Development (HUD) competitive funding program designed to help communities respond to the fallout from the foreclosure crisis, especially where foreclosed and abandoned properties have weakened neighborhood stability. NSP2 sits within the broader Community Development Block Grant (CDBG) framework authorized under the Housing and Community Development Act of 1974, which means it follows many familiar CDBG-style rules and compliance expectations, but it is tailored specifically to foreclosure-driven neighborhood distress. The core purpose is straightforward: awarded funds are meant to stabilize neighborhoods whose viability has been damaged by foreclosures and abandonment, typically through strategic acquisition, rehabilitation, redevelopment, and related interventions that reduce blight and return housing and properties to productive use.
This particular notice is not just a general program announcement; it is a correction to the original NSP2 Notice of Funding Availability (NOFA). HUD issued these corrections to adjust and clarify several program mechanics and application requirements. First, it allows applicants to use a combined index score to determine whether they meet the geographic targeting threshold requirement, which affects how an applicant demonstrates that its chosen target areas meet NSP2 distress criteria. Second, HUD makes a technical correction to the eligible activities table, specifically to activity (C), to align the NOFA with the American Recovery and Reinvestment Act of 2009 (the Recovery Act). Third, the notice rescinds an aggregate 5 percent purchase discount, while keeping a 1 percent discount available for individual purchases intact; in practice, this changes assumptions some applicants may have used when modeling acquisition costs for eligible properties. Fourth, HUD corrects omissions in the Applicant Checklist in Appendix 3, which matters because missing checklist items can translate into incomplete submissions or preventable compliance issues.
In terms of legal and funding background, NSP began with an initial appropriation under the Housing and Economic Recovery Act of 2008 (HERA), often referred to as NSP or NSP1. Congress then appropriated additional neighborhood stabilization funds under the Recovery Act in 2009, and those Recovery Act funds are what NSP2 refers to in this notice. The NOFA text draws a clear distinction in terminology: HERA-related grants and rules are referenced as NSP or NSP1, while the Recovery Act competition and its rules are referenced as NSP2. Even though the program is framed as a distinct initiative, it is still a component of the CDBG program structure, which influences eligible applicant types, compliance, and how HUD administers the awards.
Eligible applicants for NSP2 include state governments, units of general local government, nonprofit entities, and consortia of nonprofit entities. Applicants must be able to demonstrate capacity and experience to carry out an NSP2-eligible program in the proposed target geography. The notice clarifies that nonprofits can be either private or public nonprofits, and it explicitly notes that public nonprofits include governmental entities such as states, local governments, Indian tribes, and public housing authorities, so long as they fit the definition and structure described. Consortia are allowed and are defined as two or more public or private nonprofit organizations applying together as a single applicant; one entity must serve as the lead applicant, submit the application, and, if selected, execute the grant agreement with HUD and take responsibility for overall compliance and performance.
Partnerships with for-profit entities are allowed, but the for-profit partner does not apply directly as the primary applicant. Instead, an eligible applicant can include a for-profit partner to help carry out NSP2 activities, and the application must include firm commitments executed and dated by each for-profit partner. The program is clear that HUD scores the application as one integrated program rather than evaluating separate partner sub-applications. If NSP2 funds will be provided to a for-profit partner, the recipient must complete a cost analysis and then execute a separate written agreement with each for-profit partner, incorporating specific NSP2 requirements and clearly defining responsibilities for performance and compliance.
The funding is awarded through competitions and is split into two main rounds described across notices. The primary competition covered by this notice is the program round, offering up to $1.93 billion for neighborhood stabilization activities. A separate technical assistance round, described in another notice, offers up to $50 million to provide technical assistance and capacity building, including support for communities receiving NSP1 or any entity receiving NSP2 funds. This structure signals that HUD was trying to fund both direct stabilization projects and the administrative or technical capacity needed to implement them effectively.
On submission and administrative requirements, the notice emphasizes that some of HUDs general electronic submission rules published December 29, 2008 do not apply here, and it also notes that logic model portions of that General Section are not required for NSP2 under this notice. At the same time, certain baseline federal registration and identifier requirements remain critical, including obtaining a DUNS number and complying with funding restrictions. It also underscores a practical compliance point that often trips applicants up: the need to keep the Central Contractor Registration (CCR) current (the system used at the time), because HUD cannot verify the DUNS number and Tax Identification Number without an active registration, and that can delay or prevent grant payments. The opportunity listing also highlights that the closing date required paper submission and that applicants needed to follow the NOFA carefully for submission instructions.
Key opportunity details include the HUD funding opportunity number FR 5321 C 01, the title Neighborhood Stabilization Program 2, and a posted date of May 12, 2009, with a closing date of July 17, 2009, and an archive date of July 18, 2009. The award instrument is a grant, there is no cost sharing or matching requirement, and the funding is categorized under Recovery Act activity. Applicants were directed to HUDs NSP2 information page (HUD.gov/Recovery/NSP2) and provided a HUD contact within the Office of Block Grant Assistance for support accessing the full announcement. Overall, the corrected NOFA is best read as HUD tightening program clarity and application mechanics while keeping the main mission intact: targeting hard-hit areas and funding locally driven interventions that reduce the destabilizing effects of foreclosure and abandonment.
Neighborhood Stabilization Program 2 (NSP2) - FAQs
What is the Neighborhood Stabilization Program 2 (NSP2)?
NSP2 is a competitive grant program run by the U.S. Department of Housing and Urban Development (HUD). It was designed to help communities respond to the impacts of the foreclosure crisis, particularly in places where foreclosed and abandoned properties have weakened neighborhood stability.
What problem is NSP2 intended to address?
NSP2 focuses on stabilizing neighborhoods whose viability has been damaged by foreclosures and abandonment. The goal is to reduce blight and return housing and properties to productive use through targeted local interventions.
How does NSP2 relate to the Community Development Block Grant (CDBG) program?
NSP2 sits within the broader CDBG framework authorized under the Housing and Community Development Act of 1974. Because of that, NSP2 follows many familiar CDBG-style rules and compliance expectations, while being tailored specifically to foreclosure-driven neighborhood distress.
Is this notice a new program announcement or something else?
This notice is a correction to the original NSP2 Notice of Funding Availability (NOFA). HUD issued corrections to adjust and clarify program mechanics and application requirements.
What are the main corrections HUD made to the NSP2 NOFA?
Based on the notice summary, HUD corrections include: allowing use of a combined index score for the geographic targeting threshold; making a technical correction to the eligible activities table for activity (C) to align with the Recovery Act; rescinding an aggregate 5 percent purchase discount while keeping a 1 percent discount for individual purchases; and correcting omissions in the Applicant Checklist in Appendix 3.
What does the correction about the combined index score affect?
It affects how an applicant demonstrates that chosen target areas meet NSP2 distress criteria. The correction allows applicants to use a combined index score to determine whether they meet the geographic targeting threshold requirement.
What changed regarding purchase discounts?
The notice rescinds an aggregate 5 percent purchase discount but keeps a 1 percent discount available for individual purchases. This may affect how applicants model acquisition costs for eligible properties.
Why does the Applicant Checklist correction matter?
The notice corrects omissions in the Applicant Checklist in Appendix 3. Missing checklist items can lead to incomplete submissions or avoidable compliance issues, so HUD clarified the checklist requirements.
What is the legal and funding origin of NSP2?
NSP began with an initial appropriation under the Housing and Economic Recovery Act of 2008 (HERA), commonly referred to as NSP or NSP1. Congress later appropriated additional neighborhood stabilization funds under the American Recovery and Reinvestment Act of 2009 (the Recovery Act), and those Recovery Act funds are what NSP2 refers to in this notice.
How does the notice distinguish NSP1 and NSP2?
The NOFA draws a terminology distinction: HERA-related grants and rules are referenced as NSP or NSP1, while the Recovery Act competition and its rules are referenced as NSP2.
What kinds of activities does NSP2 generally support?
The notice describes NSP2 funding as intended for strategic acquisition, rehabilitation, redevelopment, and related interventions aimed at stabilizing neighborhoods and returning properties to productive use.
Who is eligible to apply for NSP2 funding?
Eligible applicants include state governments, units of general local government, nonprofit entities, and consortia of nonprofit entities.
Do applicants need to show experience or capacity?
Yes. Applicants must be able to demonstrate capacity and experience to carry out an NSP2-eligible program in the proposed target geography.
What types of nonprofits are eligible under NSP2?
The notice clarifies that nonprofits can be either private or public nonprofits.
What counts as a public nonprofit for NSP2 purposes?
The notice states that public nonprofits include governmental entities such as states, local governments, Indian tribes, and public housing authorities, as long as they fit the definition and structure described in the NOFA.
Can multiple nonprofits apply together?
Yes. Consortia are allowed and are defined as two or more public or private nonprofit organizations applying together as a single applicant.
How does a consortium application work?
One entity must serve as the lead applicant. The lead submits the application and, if selected, executes the grant agreement with HUD and takes responsibility for overall compliance and performance.
Are for-profit partners allowed in NSP2 projects?
Yes, partnerships with for-profit entities are allowed. However, the for-profit partner does not apply directly as the primary applicant; an eligible applicant applies and may include a for-profit partner to help carry out NSP2 activities.
What documentation is required for for-profit partners?
The application must include firm commitments executed and dated by each for-profit partner.
How does HUD evaluate applications that include partners?
HUD scores the application as one integrated program rather than evaluating separate partner sub-applications.
What happens if NSP2 funds will be provided to a for-profit partner?
If NSP2 funds will be provided to a for-profit partner, the recipient must complete a cost analysis and then execute a separate written agreement with each for-profit partner. The agreement must incorporate specific NSP2 requirements and clearly define responsibilities for performance and compliance.
How is NSP2 funding distributed?
The notice describes NSP2 funding as awarded through competitions and split into two main rounds across notices: a program round for neighborhood stabilization activities and a separate technical assistance round described in another notice.
How much funding was available under the program round described here?
Up to $1.93 billion was available for neighborhood stabilization activities under the program round covered by this notice.
What is the technical assistance round and how much funding was available?
A separate technical assistance round (described in another notice) offered up to $50 million for technical assistance and capacity building, including support for communities receiving NSP1 or any entity receiving NSP2 funds.
Are HUD general electronic submission rules applicable to NSP2?
The notice emphasizes that some of HUDs general electronic submission rules (published December 29, 2008) do not apply to NSP2 under this notice.
Is a logic model required for NSP2 applications under this notice?
No. The notice states that logic model portions of the General Section are not required for NSP2 under this notice.
Are there federal registration or identifier requirements applicants must meet?
Yes. The notice highlights the importance of obtaining a DUNS number and complying with funding restrictions, and it emphasizes keeping the Central Contractor Registration (CCR) current (as used at the time).
Why is keeping CCR current important?
The notice explains that HUD cannot verify the DUNS number and Tax Identification Number without an active CCR registration, and that this can delay or prevent grant payments.
Was this opportunity submitted electronically or on paper?
The opportunity listing highlights that the closing date required paper submission and that applicants needed to follow the NOFA carefully for submission instructions.
What is the HUD funding opportunity number for this NSP2 notice?
The HUD funding opportunity number is FR 5321 C 01.
What are the key dates for this NSP2 opportunity listing?
The posted date is May 12, 2009. The closing date is July 17, 2009. The archive date is July 18, 2009.
What type of award instrument is used for NSP2?
The award instrument is a grant.
Is there a cost sharing or matching requirement?
No. The opportunity listing states there is no cost sharing or matching requirement.
How is this funding categorized?
The funding is categorized under Recovery Act activity.
Where were applicants directed for more information about NSP2?
Applicants were directed to HUDs NSP2 information page at HUD.gov/Recovery/NSP2.
Was a HUD contact provided for support?
Yes. The listing notes that a HUD contact within the Office of Block Grant Assistance was provided for support in accessing the full announcement.
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