HUD is pleased to announce the publication of the Neighborhood Stabilization Program (NSP) Closeout Guide. The NSP Closeout Guide is intended to supplement the Notice of NSP Closeout Requirements and Recapture and the Closeout Instructions for Community Development Block Grant Programs Grants, as well as offer guidance to grant recipients on closing out NSP1, NSP2, and NSP3 grants. This Guide is a living document that will be updated over time and with addendums to provide additional instruction and clarification to the closeout process, as needed.
HUD has not established a deadline for closing out NSP grants. Program closeout is different than meeting expenditure deadlines. Meeting expenditure deadlines does not automatically prepare a grantee for closeout, and additional preparation is required to meet the closeout criteria. Grant closeout has benefits, including less frequent reporting, but the fundamental rules of the NSP program continue to apply to the use of program income following closeout for most grantees. Grantees are encouraged to take their time in properly preparing for closeout, which will facilitate the closeout process and post-closeout administration.
Grant closeout is described in the Guide in four phases:
- Understanding the closeout criteria
- Preparing for closeout
- Completing the closeout process
- Complying with post-closeout requirements
Grantees should consult with their HUD representative on questions about the closeout process.