NSP2 Dollars: Just the Ticket for LIHTC Developers
By Caitlin Jones
1 min read
Tax Credit Advisor, May 2011: Federal Neighborhood Stabilization Program dollars, especially those from the second funding round (NSP2), can be an attractive source of funding for affordable multifamily rental housing projects, including those using low-income housing tax credits, panelists advised at the National Housing & Rehabilitation Association’s recent 2011 Annual Meeting.
They said many NSP2 grantees still have funds available to commit and are looking for eligible projects.
The NSP program was established in 2008 to provide federal grants through states and localities to revitalize distressed neighborhoods with high levels of foreclosed homes and vacant and abandoned properties. The monies can be utilized for a variety of housing purposes, including the purchase, renovation, and re-sale of foreclosed homes, and the acquisition and rehabilitation of properties for use as affordable rental housing. New construction is permitted in certain instances. Grantees often provide the monies to developers as soft loans.
