Communities across the country have been severely impacted by mortgage foreclosures and declining property values. In response, Congress passed the Housing and Economic Recovery Act of 2008 which funded the Neighborhood Stabilization Program 1 (NSP 1) to help revitalize and stabilize impacted communities. The American Recovery and Reinvestment Act of 2009 (ARRA) provided additional funding for NSP activities to states, local governments, non profits, and a consortium of nonprofit entities on a competitive basis. An application was submitted by City staff for these additional NSP 2 funds and was awarded $326,784 to undertake this new program, the Neighborhood Stabilization Program (NSP).

Neighborhood Stabilization Program
The Neighborhood Stabilization Program (NSP) is intended to stabilize neighborhoods affected by large number of foreclosed homes. The Program addresses the problem of abandoned and foreclosed homes in Targeted areas within the City of Palm Desert, which is available for purchase by first-time homebuyers of low and moderate income. The NSP Program is available to anyone who has not owned a home in the last three years, has an annual income that is not greater than 120% of the area median income as published by the U.S. Department of Housing and Urban Development (HUD), and is purchasing a vacant foreclosed home in the designated Target areas in the City of Palm Desert. The NSP Program provides purchase price assistance as a silent-second loan and recorded as a second deed of trust to low and moderate income first-time homebuyers in the amount of twenty percent (20%) of the purchase price of the home.

Home Repair Assistance
In addition to purchase price assistance, the program also offers optional Home Repair Assistance which provides neighborhood stabilization to the foreclosed homes purchased within the program by incorporating energy-efficient improvements for long-term affordability and increased sustainability to housing and neighborhoods. Home Repair Assistance must meet Housing Quality Standard (HQS) standards and identified by City of Palm Desert prior to the close of escrow.

The total combined amount of purchase price assistance and home repair assistance cannot exceed $75,000. Closing cost assistance is not available under this Program.

If you have any questions, please contact the Redevelopment Agency Office at 760.346.0611 x 344.