HUD announces the release of a Federal Register Notice concerning the Neighborhood Stabilization Program’s (NSP) requirements for Target Areas and Program Income Transfers. Its primary purpose is to hasten the expenditure of remaining grant funds to facilitate closeout of all open NSP grants, given that most originally planned program activities are at or near completion.
The Notice has three elements:
- It enables grantees to re-designate, adjust, or expand their target areas
- It permits grantees to transfer streams of program income, including future streams of program income, from NSP to the CDBG program with a single HUD-approved request
- It also reminds grantees that failure to draw funds from the line of credit for two consecutive fiscal years may result in HUD determining that need for the funds no longer exists, cancelling the line of credit, and proceeding to grant closeout
In identifying new target areas, HUD supports the ability of NSP grantees to use these funds in Opportunity Zones. Created by the 2017 Tax Cut and Jobs Act, the Opportunity Zone tax incentives are designed to stimulate private investment in designated, low-income census tracts and allows individuals and companies to invest equity in real estate projects or in businesses in these communities.
HUD is preparing additional instructions about this Notice and will release them in the near future.
View the Notice of Changes to NSP Closeout Requirements Related to Program Income Amendment.
Have questions? Want to learn more? A webinar on the Notice will be held on September 26, 2019. More information on how to attend coming soon.