CITY OF BOSTON
Neighborhood Stabilization Fund (NSP) is emergency financial assistance to encourage the purchase of foreclosed or abandoned properties.
NSP FACT SHEET
aka Cash to Close LIMITED
REO Downpayment Subsidy
As of 2-19-2009
Purpose:
Neighborhood Stabilization Fund (NSP) is emergency financial assistance to encourage the purchase of foreclosed or abandoned properties.
Allocation:
The City of Boston will receive approximately $8.4 million (Fed and State). A total of $1.5 million is available for down payment assistance.
Subsidy:
$15,000 down payment assistance for NSP area properties OR
$25,000 down payment assistance for FIT area properties
The amount of the subsidy is determined by the property location
NSP Geography
Specific neighborhoods of East Boston, Dorchester, Mattapan, Roxbury and Hyde Park. See NSP map.
Buyer Eligibility Requirements:
Home Buyers must take a min. of 8 hours of education counseling
(HB 101) with an REO component in the curriculum.
Primary, owner occupied residences
Does not have to be a first time home buyer but cannot own any other real estate
Max income of 120% AMI
No asset test; but Buyers must have at least 1.5% of their own funds
Buyers must go through an approved, City of Boston Participating Lenders
Program Requirements:
Properties must be REO (bank owned). Non- bank-foreclosed abandoned properties are also allowed under limited conditions.
Properties must be purchased at 95% of the appraised value or less
NSP target neighborhoods (see map)
Affordability Period of 10 years up to $25K:
Repayment of loan if Home Owner sells before 10 years. If sale is within the first 5 years, full repayment will be required; zero percent interest. Second five years, repayment will be pro-rated over remaining term of affordability period, 20% per year.
Lead Paint Title X regulations apply
No condo conversions allowed during Affordability Period
Resale Provision: Buyer must sell to another owner occupant during the Affordability Period
Residential single, 2 or 3 family homes or condos only
No layering of other NSP funds
If buying a 2 family and the amount of the subsidy represents at least 50% of the purchase price, rental income may be restricted to the affordable rental limits
If buying a 3 family and the amount of the subsidy represents at least 33% of the purchase price, rental income may be restricted to the affordablerental limits
“F.I.T.” Rehab Subsidy
(Foreclosed Intevention Team)
Up to $20,000 for owner occupants of properties within the high foreclosure areas of Hendry, Langdon and Dacia Street neighborhoods.
Funds are a 0% deferred loan to be used for health and safety repairs and visible exterior improvements.
Construction specifications and monitoring provided
NSP- Rehab Subsidy
(Neighborhood Stabilization Program)
•A rehab subsidy of up to $50,000 will be available for city offered REO properties. Includes carrying costs.
•Improvements to meet housing safety, quality and habitability codes, laws, or regulations
•May not be layered in to a purchase-rehab loan
•Will be a stand alone second 0% deferred loan
•Other city home repair programs available to REO buyers post purchase.
