NSP FAQ
Q

If a foreclosed property was previously assisted by HOME funds, can a grantee use NSP funds to acquire and rehabilitate it, and, if so, how does that affect the affordability requirements?

Date Published: October 2012

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A

There is no restriction on the use of NSP funds to acquire and rehabilitate previously assisted properties. With regard to HOME assisted properties, however, the affordability restrictions were probably terminated through foreclosure or transfer in lieu of foreclosure pursuant to 24 CFR Part 92. The Unified NSP1 and NSP3 Notice states that the grantee must revive the HOME affordability restrictions for the greater of the remaining period of HOME affordability or the continuing affordability requirements of the NSP Notice.


Tags: NSP Program Requirements - Affordability Period

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FAQ ID:

466