Neighborhood Stabilization Program 2
The Neighborhood Stabilization Program2 (NSP2) was established to stabilize neighborhoods whose viability has been and continues to be damaged by the economic effects of properties that have been foreclosed upon and abandoned. NSP2, a term that references the NSP funds authorized by Title XII of Division A of the American Recovery and Reinvestment Act of 2009, (the Recovery Act) provides grants to states, local governments, nonprofits and a consortium of public and or private nonprofit entities on a competitive basis.
Rock Island Economic Growth Corporation, in a consortium agreement with the City of Moline, The City of Rock Island, The City of Sterling, and the Illinois Housing Development Authority has been awarded $18,530,708 in NSP2 funds. These funds will be used in targeted areas across 13 census tracts with high foreclosure and abandonment risk scores and that are comprised of older and troubled housing stock located in neighborhoods that have experienced disinvestment overtime. The Consortium proposed to use the NSP2 funds to purchase, rehabilitate, and resell 57 abandoned or foreclosed properties, redevelop 21 single family units and 142 multifamily units from vacant property, demolish 49 blighted structures, and provide financing mechanisms in the form of direct homeownership assistance and soft second loans for 78 units. These activities will benefit households whose income is at or below 120 percent of area median income, with 25 percent of the funds for households at or below 50 percent of area median income. The use of these awarded funds, and an additional $4,388,740 in leveraged funds, will result in increased median market values of real estate in the targeted areas, advancement of new investments in housing, the creation of over 900 construction jobs, and increased energy efficiency in the addressed units.
As part of the NSP2 grant, the City is buying, rehabilitating or rebuilding, and selling seventeen foreclosed homes to low and moderate income families. The program is funded by $2.7 million in federal stimulus money from the NSP2. Once a home is sold, that project income can be put back into the "pot" of grant money and used to rehabilitate additional houses.
Families may be eligible for a stipend of $30,000 depending on income. However, there are term limits to the stipend money; a family that receives the maximum amount would have to own the home for 20 years.
Interested in a New Home?
If you are interested in applying for a home through the NSP2 grant, please contact the Code Enforcement Department at 212 Third Avenue or (815) 632-6624. You will need to fill out an application and meet with the Code Enforcement Director. To download an application, click here. To download a Homebuyer Assistance Program Interest Sheet, click here.
Under the terms of the NSP2 grant, home buyers must have a household income 120 percent or less than the area's median income. The median income in Whiteside County is $56,000 for a family of four. The home buyer must not own a home now. They do not need to be first-time home buyers or live in Sterling to apply. In order to qualify, a home buyer must complete an 8-hour HUD counseling and training session.