Salem is First Urban Community in Oregon to Issue NSP Funds

Local woman is the first in the Salem-area to receive the funding.

Salem-News.com aerial overview of Salem, Oregon by Tim King

(SALEM, Ore.) - The City of Salem, in coordination with Oregon Housing and Community Services (OHCS), became the first urban community in Oregon to release Neighborhood Stabilization Program (NSP) funds.

As part of the NSP, Salem was allotted $845,564 to distribute to residents for the redevelopment of abandoned and foreclosed properties in pre-determined census tracks.

Salem resident, Robin Buchholz, purchased a home using NSP funds in northeast Salem for herself and her daughter. Buchholz is the first in Salem to purchase a home using the NSP program. Her loan includes $5,000 for rehabilitation work on the property.

“This is absolutely the only way I could get into a house. I attended the ABC’s of Homebuying in May and followed up on the NSP program. I was on the internet every morning at 5 a.m. looking at houses and I memorized the NSP census track maps. There was a lot of research involved in finding and buying a home that was a good fit for us,” said Buchholz.

“Without NSP, we could have been waiting another three years to buy a home. The overall cost for me now is $10 less a month than what I was paying in rent. The NSP funds I received went towards my down payment, which lowered my monthly payment, and now I can afford to hire people to help me make the modifications I need to the house, and to keep the house repairs current. This is the trickle down affect of the NSP money,” said Buchholz.

Over $800,000 in NSP funds are still available for use in Salem and Keizer. Qualified applicants can use the funds for down payment assistance for the acquisition and rehabilitation of single family properties. NSP funds can only be used by households with incomes at or below 120% of median family income (e.g., a family of four could earn approximately $69,850) for the purchase of Real Estate Owned (bank owned) properties located in specific census tracks. A map of required Salem-area census tracks can be found at: cityofsalem.net/Departments/UrbanDevelopment/FederalPrograms/Pages/NSP_Maps.aspx. For more information regarding 120% median family income, please visit: cityofsalem.net/nsp.

As part of the program, The City of Salem is offering 0% interest loans of up to $50,000 to assist with down payment, closing costs, and rehabilitation of approved properties. For more information on the program, please contact Rena Peck, Federal Programs Manager, 503-588-6178, ext. 7546 or visit cityofsalem.net.

News release from the city of Salem