Welcome to the City of Los Angeles Neighborhood Stabilization Program
ANTONIO R. VILLARAIGOSA
City of Los Angeles
"As many homeowners know, foreclosures are a serious problem in Los Angeles, but
I want to reassure our homeowners that this problem is not being ignored," said
Mayor Antonio Villaraigosa. "The Neighborhood Stabilization Program (NSP) provides
valuable information as well as funds that will revitalize communities, make homes
available to first time home buyers, and put Angelenos back to work."
MERCEDES M. MÁRQUEZ
Los Angeles Housing Department
The Neighborhood Stabilization Program (NSP) was established under the Housing and
Economic Recovery Act of 2008 (HERA), which awarded $3.9 billion emergency assistance
funds to states and local jurisdictions heavily impacted by the foreclosure crisis.
In 2009, President Barack Obama signed the American Recovery and Reinvestment Act
(ARRA), which allocated an additional $1.93 billion in competitive grants for a
second round of NSP funds, as stimulus to assist jurisdictions in their recovery
efforts. On September 8, 2010, the U.S. Department of Housing and Urban Development (HUD)
awarded $9.88 million of third round NSP funds to the City of Los Angeles under the recently
enacted Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
The Los Angeles Housing Department (LAHD) has been awarded $142,740,870 in NSP funds from the US Department of Housing & Urban Development (HUD), one of the largest allocations made to a single jurisdiction. LAHD has developed an innovative program that uses
NSP funds for the acquisition, rehabilitation and resale of foreclosed residential
properties in areas that were hardest-hit by the foreclosure crisis to help arrest
declining home values and revitalize neighborhoods. The acquired properties are
restored, utilizing sustainable building practices and incorporating responsible
“green” building components.
Single family homes are sold to low- to moderate-income homebuyers. Multi-family
properties are sold to local non-profit organizations that in turn rent to low-
to moderate-income tenants. Homebuyers can take advantage of LAHD’s purchase assistance
in the form of deferred, subordinate loans for acquisition, down payment, and closing
Yes, these are tough economic times but LAHD stands ready to explore new initiatives
and compete for more resources to house Angelenos and stabilize families. We are
committed to intensify our efforts to prevent foreclosures and address the challenges
we now face in our neighborhoods and local communities.