Neighborhood Stabilization Program (NSP)

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Neighborhood Stabilization Program 1 & 3 (NSP)

The City of Lauderhill was approved to receive $4,293,288 (NSP 1) and $1,500,609 (NSP 3) in emergency assistance from the Department of Housing and Urban Development (HUD) through the Neighborhood Stabilization Programs (NSP).

The purpose of the City’s NSP program is to facilitate the purchase and rehabilitation of vacant foreclosed and abandoned properties that might otherwise become sources of abandonment and blight within the community.

NSP 1 and 3 Purchase Assistance Program

The Purchase Assistance Program is a down payment and principal buy down program which will provide the lesser of $50,000 or twenty (20%) percent of the sales price for a home that has been abandoned, foreclosed, vacant, or is a short sale. Applications are accepted on a first come, first qualified, first served basis. Applicants are responsible for finding eligible homes located within the boundaries of the City of Lauderhill (Condominium, Townhouse or single family residences) which must serve as your primary residence. Homestead Exemption must be filed within the year of purchase. A copy of the approved Homestead application must be submitted to the Office of Business and Neighborhood Enrichment Division upon receipt.

Applicant Requirements:

  • Applicants do not have to be first time home buyers BUT must not own a home, in whole or in part, at time of application and prior to closing on the purchase of a NSP eligible property.
  • Applicants must qualify for a mortgage loan from a conventional bank or mortgage lender in order to receive assistance from the City.
  • Purchase assistance applications will not be accepted without a mortgage pre-approval from a lender.
  • Applicants must sign the City’s mortgage and promissory note. The City’s mortgage (typically a second mortgage) is forgiven after 10 or 15 years – depending on the amount of assistance receive.
  • Total household income cannot exceed 120% of the area median income. Please see income guidelines.
  • Applicants must attend a HUD- approved 8 hour home buyer education class prior to awards letter, if approved.
  • Applicants must have verifiable income and assets.
  • Property must be purchased one percent below appraised value.

Program Benefits:

  • NSP funds can be used to pay for a portion of the lender’s required down payment, 100% of closing costs or assist with reducing mortgage principal balance.
  • Ability to purchase property at a discount.
  • Below market interest rates may be available from your lender per program underwriting guidelines.
  • Reduced closing costs.
  • Fixed rate term for 30 years.
  • Liberal qualifying ratios.
  • Assistance with the home buying process.

Eligible Properties:

  • Single-Family Homes
  • Townhouse
  • Condominiums/Villas
  • Limitations on maximum sales prices - $386,202
  • All properties must have an inspection.
  • All properties must be foreclosed, abandoned, vacant, and/or short sale pursuant to HUD definitions of foreclosure.
  • Properties must be purchased at a 1% discount. Discount must be based off an appraisal completed no older than 60 days from date of purchase contract.
  • Investment or second homes purchases are not permitted under this program, no exceptions.

Documentation Verified to Determine Eligibility:

  • Completed application and disclosures with signatures and date
  • Proof of citizenship or legal residential status
  • Three (3) pay stubs for all household members over 18 years of age
  • Third Party Verification of Employment
  • Three consecutive (3) bank statements for all household members who have accounts
  • Third Party Verification of Assets for all household members
  • Other assets - 401(k), retirement/pension, IRA, CDs, annuities, etc.
  • Life insurance policy type and cash value (if applicable)
  • Self-employment income statement with schedule C, E, or F
  • Social security, supplemental security income (SSI), and disability benefits
  • Proof of unearned income, child support/alimony, contributions and gifts
  • Statement for scholarships, grants, and veterans administration benefits

 Terms of Assistance:

Zero (0%) percent interest, deferred payment loan secured by a mortgage and note. The loan is forgivable in its entirety at the end of the term. The term begins the date of closing, provided the title remains under the ownership of the original purchaser.

Homeownership Assistance Amount Affordability Period
Up to $20,000................................................................10 years
Over $20,000 to $50,000 .............................................15 years


Standard HUD Guidelines
There will be a yearly write-down of the loan after the end of each full year. The write-down will be equivalent to 1/10th or 1/15th of the mortgage depending on the term. The mortgage and note shall provide for pro-rated repayment, which shall be due if the home is sold, title is transferred or conveyed, or the home ceases to be the primary residence of the owner during the affordability period.

RELATED DOCUMENTS
Quarterly Progress Reports
Public Disclosure Notices

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