The Michigan State Housing Development Authority (MSHDA) has announced that it is seeking proposals to fast-track allocation of remaining funds from the first round of funding for the Neighborhood Stabilization Program (NSP1). Failure to obligate NSP1 funds to eligible activities by the deadline of September 19 will result in the loss of funds to Michigan.
Passed in fall of 2008, the first round of the Neighborhood Stabilization Program funneled millions to Michigan communities, and a second round of funding brought $224 million to a state-organized consortium.
While all NSP1 funds initially were allocated to programs and projects at the state and local levels, some programs and projects will not be able commit all funds to meet the deadline, and are available or likely to become available for reallocation to other eligible NSP activities. MSHDA does not know the exact amount of funding that will be available for reallocation, but cannot wait until such final tallies are available to begin reallocation.
In anticipation of additional NSP funds becoming available in the next 30 days, MSHDA is issuing this request for proposals. Eligible activities are limited to, 1) acquistion and redevelopment of foreclosed, demolished or vacant residential homes and properties; 2) demolition of blighted structures to strengthen a defined low/moderate/middle income (LMMI) neighborhood area with a targeted housing revitalization strategy; 3) redevelopment, with or without acquisition, of vacant and/or demolished properties for public facilities to support ongoing targeted housing revitalization; and/or 4) provision of financial assistance through down payment assistance and housing counseling for homebuyers and/or tenants within the NSP assisted properties.
Due to the short time remaining for commitment of NSP1 funds, MSHDA will entertain applications only for projects or activities resulting in the direct commitment of NSP1 funds. MSHDA will not make sub-allocations to subrecipients for future selection of projects, but will make direct project commitments to projects a subrecipient proposes or sponsors. MSHDA will allow applicants to submit multiple project applications.
Eligible applicants include state agencies, local governments, land banks, nonprofit and for-profit entities that have projects ready for commitment. Those interested in applying should review of all NSP1 Guidance at the MSHDA website . http://www.michigan.gov/mshda/0,1607,7-141-5564_54750---,00.html
For further information, contact Sue DeVries, Neighborhood Stabilization Program Coordinator at MSHDA, 517-241-4350 or devriess@michigan.gov
Arnold Weinfeld covers federal issues and is Director of Strategic Initiatives for the Michigan Municipal League. He can be reached at 517-908-0304 or by e-mail
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