Neighborhood Stabilization Program


The purpose of the Neighborhood Stabilization Program (NSP) is to assist communities that have been, or are likely to be affected by foreclosures, while providing affordable rental and homeownership opportunities to households at or below 120% of Area Median Income.
For more information on the program, to view the NSP houses currently available, and/or to find out how to participate in NSP, please visit www.nspdelaware.org.

NSP 1

Delaware State Housing Authority (DSHA) was allocated $19.6 million in Neighborhood Stabilization Program 1 (NSP 1) funding in March of 2009 by the U.S. Department of Housing and Urban Development (HUD).

NSP 1 Federal Notice

NSP 1 Application

Other Documents

NSP 1 Amendment

  • The State proposes to establish a Revolving Loan Fund, in cooperation with the City of Wilmington, for the purchase, rehabilitation, and sale foreclosed/abandoned properties (as a separate fund with a set of accounts that are independent of other program accounts). This action will enable the State to carry out the same specific, eligible NSP activity authorized by HUD in 2008 and to further stabilize housing conditions in Wilmington’s current target areas for at least an additional two (2) years beyond the effective date of the proposed change.
  • Wilmington NSP1 Program - Substantial Amendment Revolving Loan Fund (RLF)
  • Notice
  • The period for receipt of public comment on the proposed substantial amendment to the NSP1 shall be for 15 days from December 15, 2015 to December 30, 2015. Please follow the public comment process posted in the Notice.

NSP 2

A second round of NSP funding was made available by HUD in May of 2009. DSHA agreed to be the lead applicant in developing a statewide application for NSP 2 funding. New Castle County, Kent County, Sussex County and the City of Wilmington all worked with DSHA to develop the application and DSHA was awarded $10,007,109 in NSP 2 funding.

NSP 2 Federal Notice

NSP 2 Application

NSP 2 Amendments

Certain changes from the application as awarded required approval by HUD. The proposed changes outlined in amendments were prepared by DSHA staff in collaboration with our partners and will allow us to make our NSP2 more successful. The requested amendments are:

The period for receipt of public comment on the draft amendments to our NSP 2 was from 9/27/10-10/7/10.

Amendment 4 Public Comment Period open September 27, 2011 through October 12, 2011

Amendment 5

  • The State proposes to enlarge the target area of Kent County’s NSP2 program by adding four additional Census tracts where the County may purchase, rehabilitate, and transfer foreclosed/abandoned properties for the purpose of stabilizing selected County neighborhoods. The additional Census tracts are 410, 415, 430, and 433. Three of the four Census tracts in the expanded area are contiguous to the current target area and are part of the NSP1 allowable areas. One Census tract lies outside the target area. Housing conditions in all Census tracts continue to present a need for further attention from the program.
  • Kent County NSP 2 Program - Substantial Amendment (Target Areas)
  • Kent County NSP Target Area Map
  • Notice
  • The period for receipt of public comment on the proposed substantial amendment to the NSP1 shall be for 15 days from December 15, 2015 to December 30, 2015. Please follow the public comment process posted in the Notice.

Other Documents

NSP 3

DSHA was awarded $5,000,000 in NSP 3 funding in March of 2011. DSHA is proposing to use these funds to provide mortgage and down payment assistance to homebuyers purchasing foreclosed homes in targeted census tracts and to develop rental housing for people with incomes at 50% or less of median income who have a disability.

NSP 3 Federal Notice

NSP 3 Application

NSP 3 Draft Amendment

Certain changes from the application, as awarded, required approval by HUD. The proposed changes outlined in a draft amendment to the plan were prepared by DSHA staff and will allow us to make our NSP 3 more successful. The requested draft amendment is:


Draft Amendment 1

The NSP 3 draft amendment 1 Public Comment Period opened June 13, 2012 through June 28, 2012

Other Documents

NSP 3 — Rental Housing for Special Needs Persons

Neighborhood Stabilization Program 3 (NSP 3) Nonprofit Developer Interest Meeting Invitation - November 15, 2012

Documentation & Materials for Permanent Rental Housing



NSP Forms:



NSP Quarterly Reports

*NSP Quarterly Reports April 2009- March 2011 have some formatting problems; extraneous characters appeared in some of the narrative sections of the reports after they were entered into the HUD reporting system and printed. We are working to improve the readability of reports going forward, but are unable to modify past reports.

NSP 1

NSP 2

NSP 3