The Neighborhood Stabilization Program (NSP), which was authorized in the federal Housing and Economic Recovery Act of 2008, allocates $178 million to be distributed among Texas cities, counties, and nonprofits to redevelop abandoned and foreclosed properties that have become sources of blight. Of this amount, the U.S. Department of Housing and Urban Development (HUD) has directly allocated $76 million to the Texas cities and counties determined to be in most need of funds, and has allocated the remaining $102 million to the state to be distributed according to a HUD-approved action plan that was created by the Texas Department of Housing and Community Affairs (TDHCA). Under the approved plan, cities from certain counties are eligible to receive NSP funds either through the pre-determined direct allocation or through the competitive grant process.

On March 12, 2009, the TDHCA governing board approved the notice of funding availability (NOFA) for the allocation of the $102 million in state NSP funds. The NOFA will be published in the Texas Register on March 27, 2009, at which time TDHCA will begin accepting applications for funding from eligible Texas cities. The period for TDHCA to accept applications will end on April 27, 2009. A copy of the NOFA can be found at:

TDHCA and the Office of Rural Community Affairs are holding a Texas Neighborhood Stabilization Program Application Workshop in Austin on Friday, March 27, 2009, from 2:30 pm to 5:00 pm. Detailed information about participating in the workshop in person or via webinar can be found at:

For more information on the allocation of NSP funds in Texas, please visit TDHCA’s website at

TML member cities may use the material herein for any purpose.
No other person or entity may reproduce, duplicate, or distribute any part of this document without the written authorization of the
Texas Municipal League.

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