The mortgage crisis has led to an abundance of vacant foreclosed homes across the country, negatively impacting communities’ property values and quality of life, and often leading to even more foreclosures. While urgent action is needed to reverse this trend, the crisis also offers a rare opportunity to make lasting progress on communities’ affordable housing goals. NSP funding is one in a series of new federal, state, and local programs intended to help communities buy vacant properties at reduced prices, renovate them, and resell them.
NSP funding provides an avenue for communities to invest in foreclosed properties such that public resources will be preserved into the future. By including finance mechanisms such as Deed Restrictions, Community Land Trusts, Shared Appreciation Loans, and Lease-to-Purchase programs in their NSP plans, communities can buy and renovate foreclosed properties and resell them at an affordable price to those families most in need of homeownership assistance. In return, assisted homeowners agree to pass affordability onto future homebuyers, thus preserving affordability from one generation to the next.