U.S. Rep. Bill Pascrell, Jr. (D-NJ-08) today announced that $1,196,876.72 in federal Neighborhood Stabilization Program (NSP) grant funding was awarded to Paterson.  Paterson had previously been awarded $2.2 million in NSP grants in the first round of funding.

The Neighborhood Stabilization Program (NSP) provides grants to every state and certain local communities to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes.  Rep. Pascrell voted to approve the program as part of the Housing and Economic Recovery Act of 2008.

“I am heartened that local Paterson agencies have pulled together to make certain that the city gets the full benefit of the first round of NSP dollars,” said Pascrell a member of the House Ways and Means Committee who recently voted to provide an additional $1 billion in funding for the program as a component of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. 

“This is the type of common sense investment in Paterson we need to reverse the effect foreclosures have had in our neighborhoods. The future of our city depends on all federal and municipal authorities working together to make the most of these NSP resources. I will continue to monitor the city’s progress, offering any assistance that may be needed. ”

Paterson plans to use its first round of NSP funding to purchase and rehabilitate five distressed properties for use by low, moderate and middle income families.  The latest round of NSP funding targets states and local governments nationwide that have high numbers of foreclosed and/or vacant properties in the neighborhoods with the highest concentrations of foreclosures, delinquent loans, and subprime loans. 

Grantees may use NSP funds to establish financing mechanisms, acquire and rehabilitate housing, operate landbanks, demolish blighted property and redevelop property for housing purposes.  Grantees are also required to use at least 25 percent of their funds for activities that provide housing for households at or below 50 percent of area medium income.  This funding represents the third appropriation for NSP, bringing the total for the program to $7 billion.

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