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U.S. DEPART\IENT OF HOUSING ANI) URBAN DEVELOPMENT
WASHINGTON, DC 20410-70X)0
ASSISTANT SECRETARY FOR
COMMUNITY PLANNING AND DEVELOPMENT
The Honorable Manuel Diaz
Mayor
City of Miami
Miami City Hall
3500 Pan American Drive
Miami, FL 33133
Dear Mayor Diaz:
SEP 2 6 2008
On behalf of Secretary Steven Preston, I am pleased to inform you that the City of Miami
has been allocated $12,063,702 in funding through HUD's Neighborhood Stabilization Program
(NSP). The NSP is authorized by the recently enacted Housing and Economic Recovery Act of
2008 (HERA) and is funded at a level of $3.92 billion.
The purpose of the NSP is to assist states and Local governments in addressing the effects of
abandoned and foreclosed properties in the nation's communities. The uses of NSP funds are:
• Establishment of financing mechanisms for purchase and redevelopment of foreclosed upon
homes and residential properties;
• Purchase and rehabilitation of abandoned and foreclosed homes and residential properties;
• Establishment of land banks for homes that have been foreclosed upon;
• Demolition of blighted structures; and
• Redevelopment of demolished or vacant properties.
Pursuant to the statutory directive of HERA, the NSP is closely related to the long standing
Community Development Block Grant (CBDG) program. As a result, HUD will implement the
NSP by relying upon existing CDBG requirements and making appropriate adjustments to
accommodate the directives of HERA. The guidance implementing the NSP is contained in a
Notice to be available September 29, 2008 on HUD's website at www hud.gov/nsp and also
published in the Federal Register during the first few days of October. This website will also
provide a wide range of other information which will be useful to NSP grantees.
The Notice describes the application process that your jurisdiction will have to follow to
obtain its NSP allocation. .Briefly, the application will be an amendment to your jurisdiction's
existing consolidated plan that governs the use of CDBG and other HUD formula program funds.
This approach has the advantage of building upon planning actions already undertaken by your
jurisdiction and, to further speed the process, HUD is abbreviating citizen participation
requirements. These steps are intended to assist grantees in developing their program and
submitting their application to HUD not later than December 1, 2008. Failure to apply by
December 1. 2008 will result in the reallocation of your jurisdiction's funds to other grantees.
www.hud.gov espanol.hud.gov
2
The Department is committed to assisting grantees in the implementation of the NSP at the
state and local level. To this end, Secretary Preston is hosting a housing summit in Washington, DC
on October 7 and 8 and I encourage you to attend to benefit from the most current information
regarding the NSP and other aspects of HERA. Information on the housing summit can be found at
www.hud.gov. Further, HUD will conduct a series of one day informational sessions on the NSP to
be held at several locations across the country beginning October 10. Information on these sessions
will be available on HUD's website as soon as details are finalized.
As your staff undertake efforts to develop an NSP program, I urge them to contact the
Community Planning and Development staff in your assigned HUD field office if they have any
questions. HUD's field staff is, as always, the best source of guidance as to program requirements
and HUD's expectations.
I look forward to working with you to ensure the rapid and successful implementation of the
NSP to benefit the nation's communities.
Sincerely,
Susan D. Peppier
Assistant Secretary