In March 2009, Commerce signed a $28 million Neighborhood Stabilization Program grant with the U.S. Department of Housing and Urban Development (HUD) and entered into sub-recipient agreements with 25 local governments experiencing high degrees of foreclosures and abandoned properties. In March 2011, Commerce signed an additional $5 million grant with HUD for Neighborhood Stabilization Program3 funds, which resulted in four more local government projects. A majority of local governments partnered with agencies, such as Habitat for Humanity, local housing authorities, or social service agencies.

These federal NSP funds were used to purchase and rehabilitate homes or properties that were sold or rented to low, moderate or middle income families. At least 25 percent of the funds helped low-income (less than 50 percent of Local Area Median Income) households. All funds were spent by March 2014.

Of the $33 million in NSP grant funds, over $32.9 million and another $5 million in program income funds have been spent to mitigate the impact of abandoned and foreclosed homes in Washington communities. Over 450 properties were acquired, rehabilitated and sold or rented to eligible people.

With the housing crisis that started in 2008 subsiding, and all funding distributed, we are now in the process of closing out the Neighborhood Stabilization Program in Washington State.