City of Las Vegas, NV

08/18/2022 | News release | Distributed by Public on 08/18/2022 20:52

Neighborhood Stabilization Plan

UPDATE AUG. 18, 2022 - Due to actions from the regional office of the Department of Housing and Urban Development (HUD), the city of Las Vegas has been asked to suspend all relocation efforts for Neighborhood Stabilization Program (NSP) participants.

In 2010, the Neighborhood Stabilization Plan (NSP) was authorized by the federal government to provide emergency assistance intended to stabilize communities experiencing high rates of abandoned and foreclosed homes. The temporary program aimed to assist families whose annual incomes were up to 120 percent of the area median income during the foreclosure crisis.

NSP was never intended to be a permanent program, and the Department of Housing and Urban Development has asked communities to expeditiously close out programs or risk losing remaining federal funds. Closing this program will NOT result in any evictions and all tenants will receive relocation assistance, including cash payouts in accordance with federal regulations.

The city used $14.7 million of these federal funds to purchase and rehabilitate 72 foreclosed single-family homes that were then managed by the Southern Nevada Regional Housing Authority to be rented to income-qualified households.

Over the last two years, when homes became unoccupied, they were put up for sale, and since 2020, 11 homes were sold. Currently, the city owns 61 homes. All of these homes are currently occupied, and continue to be managed by the Southern Nevada Regional Housing Authority.

To close out the program the city, through a competitive bid process, has retained the firm of Del Richardson & Associates, Inc. to assist with facilitating the relocation of current tenants. Tenants will be relocated in a manner that avoids displacement, takes into account the diverse needs of each family, and that is in full compliance with all applicable state and federal laws including the uniform relocation act guidelines.

While the final details of the relocation process will be unique to each household, at a minimum Del Richardson & Associates, Inc. will provide the following:

  • Letters to tenants informing them the NSP program is closing and outlining their rights. The letters inform the tenants they are not being evicted, and explain available services.
  • Offering individual consultations to determine eligibility for relocation assistance and/or payments;
  • Provide relocation assistance, which includes the following for those who qualify referrals to available properties; assistance completing payment claims; payments for moving expenses; and replacement housing payments for the purchase or rent of a replacement home.
  • Provide reasonable accommodations for persons with disabilities and language assistance.

The proposed deadline for NSP closeout is Dec. 31, 2022. The city will be flexible with tenants and make every possible attempt to ensure every relocation has a positive tenant outcome. As tenants relocate, NSP homes will be repaired and placed for sale at fair market value, as required by the Department of Housing and Urban Development.

All proceeds from the sale of these homes will be reinvested in community needs, such as affordable housing.