HCD Receives $50 Million Neighborhood Stabilization Grant

The Palm Beach County Department of Housing and Community Development (HCD) received notice that a Neighborhood Stabilization Grant (NSG) II in the amount of $50 million has been fully funded by the U.S. Department of Housing and Urban Development (HUD).

On July 7, 2009 the Board of County Commissioners authorized the submittal of this grant to HUD.  Unlike Neighborhood Stabilization Grant I, which was a formula based, guaranteed direct allocation grant, NSP II was competitive on a nationwide basis. Only seven grants were awarded in Florida one of which was Palm Beach County’s.

The Target area for Palm Beach County’s grant is the Urban Redevelopment Area which includes the Westgate Community Redevelopment Agency (CRA).  The purpose of the NSP II grant is to stabilize neighborhoods that have been damaged by the economic effects of abandoned and foreclosed properties. The county’s application included three components:

1. a $9.15 million low interest second mortgage loan program to homebuyers to acquire vacant and foreclosed properties for owner occupancy,
   
2. a $20.3 million competitive residential redevelopment program to provide grants or loans to entities to acquire/rehabilitate vacant foreclosed residential properties for affordable resale or rental; and
   
3. a $16.47 million neighborhood redevelopment program to provide loans or grants to entities partnering with for-profit developers to acquire and/or redevelop vacant residential properties for affordable multifamily rental.
   

NSP II funds may assist households earning up to 120 percent of the Area Medium Income (AMI), however no less than 25 percent of the total grant funding must be used to assist households whose income do not exceed 50 percent of AMI. The current AMI for Palm Beach County is $67,600.

Staff was able to secure $30,274,145 in nonfederal funds to be used as a match for the funding. The partnering agencies providing that funding are the Housing Finance Authority, the Palm Beach County Community Land Trust and the Westgate/Belvedere Homes CRA.