HUD Issues Guidance on NSP Disposition and Demolition

HUD Issues Guidance on NSP Disposition and Demolition

HUD is aware that market conditions in many target geographies require a mix of demolition and preservation of housing units to stabilize communities that have suffered from foreclosures and abandonment. This guidance seeks to clarify the way in which grantees can use Neighborhood Stabilization Program (NSP) funds to demolish and dispose of troubled properties. Please note that this guidance applies only to the NSP program, and unless otherwise stated should not be used for the Community Development Block Grant (CDBG) program activities.

View the Guidance on NSP Disposition and Demolition.

To access all NSP Policy Alerts, view the NSP Policy Alerts Notebook.

Welcome to the Missouri NSP Portal

This portal serves as the central point of the Missouri Neighborhood Stabilization Program's program management.  Here, you will find news and information regarding the MO NSP.  In addition, this portal facilitates policies and procedures between the grantees and the Missouri Department of Economic Development.

On this site you will find documents that can be downloaded, such as the Missouri State NSP Guide and relevant training materials and links.  Important forms are also in the portal and grantees may download, fill out, and upload the completed forms.

Many questions can be answered from browsing the FAQ or using the search feature, but if you have any additional questions or need help, please visit our contact page.

Attention: Missouri NSP Bulleting Number 03-12

Recapture of Program Income

We recently requested input from Missouri NSP sub-state grantees regarding options for recapturing a portion of future program income.  The request was made because of the need to provide ongoing general administrative funds for the State’s use in managing the NSP program in future years.  By allowing sub-state grantees to retain 100% of program income, there would have been no funds available to the State for management purposes.  As we stated in our request:  “The problem is that while the program as a whole will continue for months or even years to come using program income, there will be no additional funds available to cover the State's administrative costs without some way to recapture a portion of program income or other funds from the local level. In short, we need to find a simple and workable system to cover the State's administration until the NSP program is closed out.”

We appreciate the input that we received.  Sub-state grantees were generally supportive of the approach outlined in our original message.  We have decided to use that approach beginning on January 1, 2013.  Please note that program income generated prior to that date is not subject to these recapture provisions.

MO-NSP sub-state grantees will remit to the State 2.5% of all program income generated after January 1, 2013, on a quarterly basis.  Beginning with the quarter ending March 31, 2013, please remit to the State the appropriate amount and continue to remit funds within 30 days following the end of each quarter thereafter. If no program income was generated for the subject quarter, no actions are necessary.  Checks should be written to:

Missouri Department of Economic Development
Attn:  Sherry Reeves – NSP Program Income
P.O. Box 1157
Jefferson City, MO 65102

If you would prefer to transfer the funds via electronic funds transfer, please notify us separately so we can make appropriate arrangements.

Again, we appreciate your cooperation.  If you have any questions or comments, please contact your assigned MO-NSP Representative.