Overview

The Neighborhood Stabilization Program (NSP2) has ended.  There are no more funds available for home purchase under this program.  If you are interested in renting one of our NSP homes, please click on the link to Rental Program.

In January 2010, a Consortium of local nonprofit organizations was awarded a $10,191,000 Neighborhood Stabilization Program (NSP2) grant to stabilize neighborhoods in El Paso County, Texas whose viability had been and continues to be compromised by the economic effects of excessive foreclosures. The Consortium is comprised of the El Paso Collaborative for Community and Economic Development, AYUDA, Inc., Habitat for Humanity-El Paso and Project Vida. The Consortium selected the El Paso Collaborative for Community and Economic Development to serve as lead applicant and fiscal agent.

The goal of the NSP Program is to acquire, rehabilitate and return to productive use 125 single-family homes in 22 eligible census tracts located inside and outside the city limits of the City of El Paso. One hundred-five homes will be returned for use for home ownership and twenty homes will be returned to use as rental properties. The project’s end-users will be households with incomes up to 120% AMFI with a minimum of twenty-five percent of program funds reserved for end users with incomes at or below 50% AMFI. This threshold will be met by Habitat, Project Vida and AYUDA, Inc. exclusively serving these very-low income households. Habitat will make properties available for very-low income homebuyers. AYUDA, Inc. and Project Vida will make foreclosed, single-family units available to very-low- income renters. Project Vida will manage all the rental units during the grant period and will provide property management training to AYUDA, Inc. and the Collaborative to increase their future capacity.

Two for-profit developers, Dawco Builders, LLC and Karma-JKS Properties Inc. will acquire and rehabilitate the foreclosed properties and resell them to income-eligible households. Long-term affordability will be built into the program design to assure that NSP2-assisted properties remain affordable for the longest feasible period.

The financing mechanisms selected for this project are: loans to for-profit developers and Consortium Member for acquisition and rehabilitation, and homebuyer assistance to homebuyers.

SECTION 3 STATEMENT

It is the policy of the El Paso Collaborative for Community & Economic Development of El Paso, Texas to comply with Section 3 of the Housing and Urban Development Act of 1968 to ensure that employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, and consistent with existing Federal State, and local laws and regulations, be directed to low and very-low income individuals, especially recipients of government assistance for housing, and to business concerns which provide economic opportunities to low and very-low income individuals.