United states legislature as part of the housing economic recovery ACT
In 2008, the Neighborhood Stabilization Program (“NSP”) was enacted by the United States Legislature as part of the Housing Economic Recovery Act, in order to deal with the current housing foreclosure crisis facing many localities throughout the county. These funds have been awarded to selected cities who meet the criteria and requirements in order to acquire homes foreclosed upon in that City.
All work performed must comply with Title X of the 1992 Housing and Community Development Act. The City was required to utilize Contractors to assist in the rehabilitation of these homes, and was required through this program to choose contractors who have extensive rehabilitation and construction experience in the previous 10 years.
Additional requirement is that the contractor/applicant prove substantial experience evaluating the condition of homes; including testing for dangerous chemicals; evaluating and remedying building code violations; determining and budgeting for anticipated rehabilitation costs, including preparation of project budgets; and obtaining required building permits and inspections.
Finally the Applicant must hold a current California general contractor license in good standing.
The goal of the Program is to recapture 100% of the costs incurred to purchase and rehabilitate each Home.