circle_recovery_logo.jpgAs part of the American Recovery and Reinvestment Act of 2009 (ARRA), the Department of Housing and Urban Development (HUD) issued a competitive grant application intended to stabilize neighborhoods that have been hardest hit by the effects of foreclosed and abandoned properties.  The Neighborhood Stabilization Program 2 (NSP2) was developed as a competitive grant program through HUD, the first type of program HUD has ever embarked on.  A Request for Proposals was issued on May 4, 2009.  The basic requirements of this grant application were:

  • All funds distributed must benefit households with incomes ≤ 120% of the area median income (AMI) and 25% of funds must benefit households ≤ 50% AMI (see table below)
  • Selected proposed project geography must score at least 18 (out of 20) using HUD foreclosure rate assessment
  • Each grant recipient must return at least 100 foreclosed or abandoned housing units to productive use or otherwise mitigate their negative effects
  • Housing units must remain affordable for a minimum of 15 years for rehab and 20 years for new construction
  • To establish capacity to carry out the project, applicants must have completed 75 units of each proposed activity in the last two years (acquisition, rehab, etc.)
  • 50% of the grant amount must be expended in first two years; 100% of the grant amount must be expended in three years
  • A minimum of $5 million had to be requested in the grant application

The City of Evanston partnered with Brinshore Development LLC in submitting an application requesting $40.6 million to accomplish:

  • Purchase and rehab 100 foreclosed/abandoned housing units and;
  • Construct a 98-unit mixed income and tenure residential community on vacant industrial property in west Evanston

Following a unanimous vote from the Evanston City Council, The Community Development Department and Brinshore Development submitted an application to HUD on July 15, 2010.  Below is a map illustrating the Proposed Target Geography for the NSP2 Application.


HUD ultimately granted the City of Evanston and Brinshore Development $18.15 million in NSP2 funds.  The revised program includes:

  • Acquire and rehab 100 housing units to be occupied by households ≤ 120% of the area median income (currently $90,960 for a family of four)
  • Property types may include single-family homes, townhomes, small flats, multi-family buildings and condominiums, based on availability
  • Provide minimum eight hours of housing counseling for homebuyers
  • Provide soft second mortgages to home purchasers
  • Funds not used for the required 100 units of foreclosed/abandoned housing will be used for new development, which will be re-scaled or phased based on funding
  • A goal that, at minimum, 25% of construction contracts will go to minority -, woman- and Evanston-based businesses. The program must also achieve HUD Section 3 goals of employing low- and moderate-income persons.

Evanston is one of only 56 grantees across the United States to receive funding in this innovative program.

View the Original Application

View the Revised Budget