Can we use Federal NSP funds to create shared equity homes?

Yes. Congress requires that foreclosed properties purchased with Neighborhood Stabilization Program (NSP) funds be preserved as affordable housing “for the maximum period practicable.” HUD requires only that program sponsors adhere to HOME program standards which require 5-15 years of affordability, depending on the level of public investment. However, this is intended to serve as a minimum guideline only and many communities are attempting to achieve lasting affordability for all or a portion of their NSP assisted units. NCB Capital Impact produced a report and a webinar outlining the relevant regulations.