The North Carolina Neighborhood Revitalization Program (NC Neighborhood) will offer a non-entitlement municipality or county the opportunity to tailor a project to meet the community development needs specific and most critical to their locality, primarily for their low- and moderate-income residents. The NC Neighborhood Program incorporates several previous Rural Economic Development Division (REDD) Community Development Block Grant (CDBG) programs and activities such as Scattered Site Housing and Supportive Housing.

North Carolina received approximately $45 million in CDBG funds for 2018. Of this amount, approximately $10 million will be made available for the NC Neighborhood Program.  The state makes these funds available through awarding grants to non-entitlement governments throughout North Carolina. 

The NC Neighborhood Program will support the three livability principles that helps guide sustainability and resiliency throughout areas that receive funding. Regardless of the program activity or activities local governments pursue, NC Neighborhood Program projects must incorporate at least one of the following three livability principles as an area of focus:

• Promote equitable, affordable housing. Expand location and energy-efficient housing choices for people of all ages, incomes, races, and ethnicities to increase mobility and lower the combined cost of housing and transportation.
• Support existing communities.  Target federal funding toward existing communities - through strategies like transit-oriented, mixed-use development, and land recycling - to increase community revitalization and the efficiency of public works investments and safeguard rural landscapes.
• Value communities and neighborhoods.  Enhance the unique characteristics of all communities by investing in health, safe, and walkable neighborhoods - rural, urban, or suburban.

Eligible Applicants

All municipalities are eligible to receive State CDBG funds except for entitlement communities, which receive funds directly from HUD.  North Carolina's 24 entitlement municipalities are:  Asheville, Burlington, Cary, Chapel Hill, Charlotte, Concord, Durham, Fayetteville, Gastonia, Goldsboro, Greensboro, Greenville, Hickory, High Point, Jacksonville, Kannapolis, Lenoir, Morganton, New Bern, Raleigh, Rocky Mount, Salisbury, Wilmington, and Winston-Salem. 

In addition, all counties are eligible to receive State CDBG funds except Mecklenburg County, Wake County, Union, and Cumberland County, which have been designated by HUD as urban entitlement counties.  As entitlement counties, neither the counties nor their municipalities are eligible for Small Cities funding, except for the towns of Holly Springs and Linden.

Housing Activities 

Funds for the housing category may be spent on rehabilitation, acquisition, clearance, relocation, substantial rehabilitation, replacement housing and emergency repairs. Please see 24 CFR 570.201 for a complete list of eligible housing activities.

There are no project boundaries for any of the activities in the housing category.  The applicant may choose to do scattered site housing or housing in a concentrated area or a combination.  There is no limit on the number of houses or the number of activities for the project.  The applicant will need to decide how many houses can be treated during the 30-month grant period. 

Background

The U.S. Housing and Urban Development (HUD) allocated $3.92 billion to all states and particularly hard-hit areas trying to respond to the effects of high foreclosures. HUD's new Neighborhood Stabilization Program (NSP) will provide targeted emergency assistance through HUD's Community Development Block Grant (CDBG) Program under the Housing and Economic Recovery Act of 2008 (HERA). These targeted funds will be used to purchase foreclosed homes at a discount and to rehabilitate or redevelop them in order to respond to rising foreclosures and falling home values. 

Neighborhood stabilization funds may be used for activities which include, but are not limited to:

• acquiring land and property

• demolishing or rehabilitating abandoned properties

• offering down-payment and closing-cost assistance to low- to moderate-income homebuyers

• creating "land banks" to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property

Eligible entities include entitlement cities and non-entitlement counties in target areas, non-profits, community development corporations, councils of government, public housing authorities, and public finance agencies. 

Information for NSP 3- Substantial Amendment:

The State of North Carolina received an allocation of $5 million in the newly-authorized third round of the Neighborhood Stabilization Program (NSP3), which was provided under Section 1497 of the Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act). This substantial amendment outlines the expected distribution and use of the state’s allocation. The public comment period has expired on the amended action plan. Contact Valerie Fegans for more information at valerie.fegans@nccommerce.com.

NSP 1 Announcements and Past Grantees

RALEIGH, March 18, 2009 – Gov. Bev Perdue announced that 20 local governments, nonprofits and other organizations have received grant awards totaling $48.85 million under the new federal Neighborhood Stabilization Program by the U.S. Department of Housing and Urban Development. The program’s purpose is to assist those areas hit hardest by the housing crisis. 

States were required to identify areas of greatest need based on the number of foreclosure starts and other housing-related statistics from state and national sources. In North Carolina, areas in 23 counties met the “greatest need” criteria: Alamance, Brunswick, Buncombe, Cabarrus, Catawba, Cumberland, Dare, Davidson, Durham, Edgecombe, Forsyth, Gaston, Guilford, Iredell, Johnston, Mecklenburg, New Hanover, Pitt, Randolph, Rowan, Union, Vance and Wake. 

Grantees

The NSP-1 grantees include: the cities of Charlotte, Durham, Gastonia, Greensboro, High Point, Lexington, Raleigh, and Rocky Mount; Wake and Vance counties; Forsyth County and City of Winston-Salem; the Housing Authorities of Charlotte and Greensboro; Habitat for Humanity of Forsyth County and Greater Greensboro; NC Community Development Initiative Capital, Inc.; NC Housing Finance Agency; Passage Home, Inc.; Center for Community Self-Help; and Saint Augustine’s University.  

The NSP-3 grantees include: the cities of Durham, Gastonia, Raleigh and Rocky Mount; Builders of Hope, Inc.; and Passage Home, Inc.

Grantee Forms and Compliance Plans

For financial management documents go here. For requisitions not listed please contact tmoore@nccommerce.com.

Each grantee is required to have a Language Access Plan. Should grantees have any questions on how to complete the template or questions about complying with limited English proficiency, please contact your Grants Representative or compliance@nccommerce.com. For any forms or templates not listed, please contact valerie.fegans@nccommerce.com or compliance@nccommerce.com.