Jefferson County has been awarded $6.01 Million Dollars in Federal NSP Funds. In partnership with the Cities of Arvada, Golden, Lakewood and Wheat Ridge, these funds will be used to help stabilize neighborhoods throughout Jefferson County. As the NSP dollars are distributed, Jefferson County and the part-nering Cities will determine the best use of these funds. Please check back frequently for information on specific projects as plans progress. In the meantime, the following are examples of the allowed uses for the NSP funds:
- Establish soft-seconds, loan loss reserves, shred-equity loans and other financing mechanisms for qualified homebuyers
- Purchase abandoned and foreclosed properties in order to sell, rent or redevelop
- Establish land banks for homes that have been foreclosed upon
- Demolish blighted structures
- Redevelop demolished or vacant properties
- Redevelop properties for non-residential uses such as public parks, commercial uses or mixed-use developments
NSP is intended to benefit people who have incomes at or below 120 percent of the Area Median Income. However, NSP funds may not be used to assist existing homeowners who are facing foreclosure.
When will Jefferson County be awarded the funds?
The funds will be awarded through the Colorado Division of Housing, who is currently waiting to receive their contract with the Federal Government.
How will the funds be used and distributed?
Jefferson County will contract with existing non-profit agencies to work on behalf of the Cities of Arvada, Golden, Lakewood and Wheat Ridge to administer the NSP funds. These Cities will in turn solicit organizations and vendors needed specific to their individual projects.
Will the County be able to assist homeowners in foreclosure?
The NSP funds may not be used to assist current homeowners in avoiding foreclosure. There are organizations that offer assistance listed in Resources.
Abandoned Home: Vacant for at least 90 days during which time no tax or mortgage payments have been made; mortgage or tax proceedings must have been initiated.
Foreclosed Property: The mortgage or tax foreclosure has been completed in accordance with state or local law and title has been transferred from the former homeowner.
Used Funds: Obligated with a transaction that has been initiated which creates a requirement for the grantee to remit payment in the present or future; use period of 18 months begins when HUD signs grant agreement and grantees have 4 years to spend amount equal to or greater than initial allocation.
Current Market Appraised Value: Established by an appraisal conforming to the requirements of the Uniform Relocation Act at 49 CFR 24.103. An appraisal may not be more than 60 days old at the time that a grantee, sub-recipient, developer or individual homebuyer makes an offer for a home under the NSP.
Discount: Purchase must be at a discount of at least 5% from the current market appraised value; for purchase transactions in the aggregate, grantee's average purchase discount for all properties purchased dur-ing the 18 month use period must be at least 15%, although grantees can reduce the average aggregate purchase discount requirement to 10% by determining the maximum reasonable discount for each purchase transaction through the use of a methodology that results in a discount equivalent to the total carrying costs that would be incurred by the seller if the property were not purchased with NSP funds.
Sub-recipient: Has the same meaning under the NSP as under the regular CDBG program and includes any nonprofit organization awarded funds by a state.
Revenue: Has the same meaning as program income under the regular CDBG program, with a few exceptions.
Middle Income (MI): Households whose incomes fall between 80 percent and 120 percent of AMI.
Low, Moderate and Middle Income (LMM): Aggregated groups (households, jobs for persons, clients, etc.) whose incomes do not exceed 120 percent of AMI.
Maximum Sales Price: Aggregated cost of acquiring, rehabilitating and redeveloping the property; grantees will not be allowed to include costs associated with boarding up, lawn mowing, or maintaining a property in static condition in determining the sales price.
Vendors: Realtors, Lenders, Contractors & Other Professionals
NSP is not necessarily a big money-making opportunity. In fact, some of the federal restrictions may make your job as a vendor somewhat difficult. Some of these restrictions include:
- Davis-Bacon requirements on all construction
- All real estate acquisitions must be purchased at 15% below current market value
- This is non-equity earning program for homebuyers, meaning that any buyer purchasing an NSP home must return all equity upon sale of that home
- Any participant in an NSP funded program or project must be at or below 120 percent of the area median income
- At least 25 percent of all funding must be used to house individuals or families at or below 50 percent of area median income
If you are still interested in becoming a vendor, please contact Emily J.B. Sander to be added to the vendor list: firstname.lastname@example.org / 303.271.8371. Specific contact information regarding our partners will be posted as plans progress, so please check back.
The NSP funds may be used to purchase foreclosed and abandoned homes, as well provide low interest loans and down payment and closing cost assistance to qualified homebuyers. NSP funds may not be used to assist homeowners who are currently in foreclosure. For help in purchasing a home, reha-bilitating your home, or avoiding foreclosure, please see Resources at the top of this page.
If you are interested in purchasing one of the rehabilitated homes in Arvada, Wheat Ridge, or Lakewood and are income-eligible, please contact us to begin the prequalification process.
If you have specific questions or want to be added to our mailing list of interested vendors and citizens, please feel free to contact us:
Emily Sander, Analyst
Jefferson County Community Development