Neighborhood Stablization Program (NSP) up to $50,000 downpayment Assistance in Bakersfield, CA

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What is NSP?

The Neighborhood Stabilization Program (NSP) created under Title III of Division B of the Housing and Economic Recovery Act of 2008 is intended to help stabilize neighborhoods that are under distress from foreclosures, property flipping, and sub-prime lending.

Proposed NSP eligible uses and activities to be undertaken by the City.

  • Downpayment assistance up to $50,000 for qualified homebuyers purchasing a real estate owned (REO) lender asset (foreclosure) unit within the designated NSP areas. 
  • Rehabilitation of NSP acquired REO's purchased within the designated NSP areas to bring ownership residential units to City code.
  • Provide NSP-assisted homebuyers with eight hours of required homebuyer counseling.
  • Homebuyer cannot exceed 120% of the Area Median Income ($64,560 for a family of four in Bakersfield
  • Acquisition of REO units by the Housing Authority of the County of Kern (HACK) within low to moderate income areas to benefit families ≤ 50% of AMI.
  • Rehab of REO units purchased by HACK within low to moderate income areas to bring ownership/rental residential structures acquired with NSP assistance to City code to benefit families ≤ 50% of the AMI.
  • Cannot exceed 50% of the Area Median Income ($26,900 for a family of four in Bakersfield)
  • Land Banking - Bakersfield Redevelopment Agency (RDA) acquisition of foreclosed (dilapidated and/or distressed) housing structures within NSP designated RDA areas for redevelopment. 
  • RDA demolition/clearance of blighted structures within NSP designated RDA areas.
  • Redevelop demolished or vacant properties - Installation (i.e., design/construction) of public facilities and improvements (i.e., building infrastructure for support of affordable housing) within RDA areas for neighborhood stabilization.

Where inthe City of Bakersfield can NSP funds be spent?

NSP funds are to be spent within NSP designated areas.  NSP areas are defined as low-, moderate-, and middle income (LMMI) areas, show which Census Block Groups qualify for area benefit, where more than 51% of persons are determined to be low-, moderate-, and middle-income (120% or less of area median family income).  Federal NSP areas also display foreclosure and abandonment risk scores for each City block group (BG), and the higher scored NSP block groups are used to define the greatest need areas within the City.  About 60% ± of the City geography qualify for targeted federal funding due to the greatest need NSP determination indicators for Bakersfield  (See map link below).

What amount of NSP funding will the City of Bakersfield receive?  

Through a national formula applied by the U.S. Department of Housing and Urban Development (HUD), the City of Bakersfield has been allocated NSP funds in the amount of $8,982,836.  To receive these funds, the City must first submit a Substantial Amendment to its FY 2008-09 Annual Action Plan for Community Development Programs that allocates NSP funds to activities to address the housing foreclosure/abandonment crisis, and describes how the City proposes to target funds to Areas of Greatest need.

Supporting Documents:

 For Additional information please visit This information was obtained from the web site

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MIguel Garcia


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Miguel Garcia

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