BISMARCK, ND – February 17, 2009 – (RealEstateRama) – The North Dakota Housing Finance Agency (NDHFA) is soliciting pre-applications for a second round of funding under the Neighborhood Stabilization Program (NSP). Approximately $1.25M remains available. Second round applications must be received in NDHFA’s office by the close of business on March 16, 2009.
Eligible areas for the NDHFA administered funds were determined based on the number of foreclosures and sub-prime mortgages and were identified in the plan approved by HUD. These areas include the cities and surrounding areas of Minot, West Fargo, Mandan, Jamestown, Dickinson, Williston, Grafton, Wahpeton, Lincoln, Devils Lake, Valley City, Casselton, and the state’s four Indian Reservations. Eligible uses or activities under the state plan include the purchase, rehabilitation and resale of foreclosed properties; demolition of blighted structures; and redevelopment of demolished or vacant properties.
The Housing and Economic Recovery Act of 2008 provided funding for the NSP which, in turn, provides grants to states and certain units of local government to acquire, rehabilitate, or demolish foreclosed and abandoned properties. North Dakota was determined to be eligible for $19.6 million in NSP funds. Under the plan approved by HUD, the cities of Fargo, Bismarck and Grand Forks receive a specific allocation of these funds and the remainder of approximately $6.6 million is being administered by the NDHFA.
Pre-applications in excess of $15.2 million were received during the first round which closed on January 15, 2009. Eight applicants with proposed eligible activities totaling $5.4M were selected and invited to submit full applications. The NSP requires that at least 25 percent of the available funds must involve activities addressing the a) purchase, rehabilitation and resale of foreclosed or abandoned property; or b) the redevelopment of foreclosed or abandoned property and must benefit households at or below 50 percent of area median income. Priority in the second round will be given to applications that meet this requirement.
Pre-application materials can be found on the NDHFA website or by contacting Planning and Housing Development Division Director Jolene Kline at jkline (at) ndhfa (dot) org, (701)-328-8080 or (800) 292-8621.
