Neighborhood Stabilization Program Research Articles

Architectures of mis/managed retreat: Black land loss to green housing gains

Hurricane Katrina submerged thousands of single-story, slab-on-grade homes in low-lying New Orleans, disproportionately displacing African Americans they sheltered and sustained. Critical disaster studies cast charitable individuals and organizations as sponsors of Black survival, yet nongovernmental aid programs remain marginal to scholarship on environmental justice and Black geographies. This paper sheds light on the funding programs, public-private partnerships, and design-build projects by which philanthropies and charities aid Black, Indigenous and other People of Color (BIPOC) in retreat from flood hazards. This nested case study of HUD’s Neighborhood Stabilization program and the Salvation Army’s EnviRenew program shows Black developers, planners, and architects of retreat from New Orleans’s Pontchartrain Park Historic District gained public, private, and philanthropic sponsors at steep costs: the loss of land, life, and leadership in sustainable development. Drawing on administrative data, legal documents, and stakeholder interviews, the mixed-methods analysis finds new housing built above projected base flood elevations inside flood hazard zones not by choice or by chance, but in compliance with aid programs requiring Black participation in land buyout programs (Road Home) and Black facilitation of green home building and buying (Build Back Better). The Pontchartrain Park case of “management failure,” which included rescinded grants and land takings, not only illuminates the macroeconomics and microaggressions that restrict where and how Black resettlement takes place. Ultimately, this article reveals climate mitigation patrons relocate BIPOC households and heritage from endangered places in theory, yet, in practice, their relief formulas may house marginalized minorities in precarious places above measured risks.

The Evaluation of the Neighborhood Stabilization Program

The past decade has been marked by a massive housing bubble and foreclosure crisis. During the first half of the decade, home prices nationally experienced unprecedented growth, increasing 85 percent in real terms between 1997 and 2005 (Shiller, 2008). The increase was notable for its sheer magnitude and because it occurred in many markets throughout the country. In a report to Congress on the causes of the foreclosure crisis, the U.S. Department of Housing and Urban Development (HUD) detailed how, in a few short years, the country saw a housing market that had seemingly limitless potential for growth change into one that brought the economy to the brink of collapse (HUD, 2010).

The effectiveness of Habitat for Humanity as a neighborhood stabilization program: The case of Charlotte, North Carolina

Habitat for Humanity has been in operation since 1976 as a popular organization that provides housing to low-income families. In more recent years, the organization has gradually shifted its priorities toward becoming a more holistic neighborhood stabilization program, receiving a large amount of federal funding to help stabilize neighborhoods in the wake of the Great Recession. Very limited research has been done to assess the effectiveness of Habitat construction on neighborhood outcomes. This article provides a quantitative assessment of housing price values in Charlotte, North Carolina in neighborhoods that underwent a greater than average amount of Habitat construction compared to a set of similar neighborhoods with no Habitat activity. Using an adjusted interrupted time series model, we find little evidence that Habitat had a substantive impact on housing values compared to control neighborhoods.

Neighborhood price externalities of foreclosure rehabilitation: an examination of the Neighborhood Stabilization Program

The federally funded, HUD-administered Neighborhood Stabilization Program (NSP) was enacted in the wake of the financial recession to mitigate the underlying adverse neighborhood effects associated with foreclosed properties. We examined the neighborhood price impacts of NSP-funded foreclosure rehabilitation undertaken by Habitat for Humanity in Dallas County, Texas, using a difference-in-difference framework. Foreclosure rehabilitation projects in Dallas County produced an average 15% increase in neighborhood home prices that sold up to 30 months after the rehabilitated property sale and within 0.1 miles of the rehabilitated property. Foreclosure rehabilitation that involved significant exterior repairs was associated with the largest estimated effect sizes. Results suggest that NSP funding in Dallas County effectively targeted homes that had the potential to have the most severe neighborhood impacts and that rehabilitation was an effective means of reversing neighborhood price externalities associated with blighted foreclosed properties.

Public Investment and Housing Price Appreciation: Evidence from the Neighborhood Stabilization Program

This study assesses impact of the Neighborhood Stabilization Program (NSP), a federal program designed to convert foreclosed properties into renovated affordable housing through public investment. To identify the impact, I exploit a discontinuity in how neighborhoods were selected with respect to a critical threshold. The program caused non-foreclosure housing prices in targeted neighborhoods to appreciate 6.5% between 2009 and 2011. These pricing gains remained stable through the end of my sample in 2014. Furthermore, the program caused changes in neither the supply of foreclosures nor neighborhood income. This suggests quality improvement externalities were behind the price appreciation. Lastly, low market liquidity and asymmetric information in targeted neighborhoods may justify the NSP public initiative, despite foreclosure resale profitability after 2009.

Measuring foreclosure impact mitigation: Evidence from the Neighborhood Stabilization Program in Chicago

The Neighborhood Stabilization Program (NSP) is a $7 billion nationwide government program that was established to reduce the negative impacts of the housing crisis in foreclosure-concentrated neighborhoods. NSP rehabilitations aim to bring foreclosed and abandoned properties back to productive use. Very few quantitative studies have evaluated NSP and provided policy suggestions for future stabilization. Furthermore, there is some ambiguity about the channels through which foreclosures influence neighboring properties. This study fills the gap in the literature by evaluating the effects of NSP acquisition and rehabilitation in terms of the impact on elevating neighboring property values. In addition, it provides evidence that disamenity effects are a source of the negative impacts of foreclosures on their neighbors. Using a 2008–2014 repeated cross-section dataset for housing sales in the city of Chicago, the difference-in-differences estimates reveal that the average sales prices of homes within 0.1 miles of the NSP projects increased by 14.3% and these effects do not appear until the completion of the rehabilitation. Furthermore, large program effects are found for normal homes but not for foreclosure-related homes. The results vary under different contexts of NSP implementation, but the analytical approach presented in this study is reproducible for NSP studies in other regions.

Examining Changes in Long‐Term Neighborhood Housing Vacancy during The 2011 to 2014 U.S. National Recovery

ABSTRACTHigh levels of neighborhood housing vacancy—especially periods exceeding more than several months—have long been a concern to community developers and policymakers in the United States. During the foreclosure crisis, such concerns became more pronounced, exemplified by the adoption of three legislated rounds of the Neighborhood Stabilization Program from 2008 to 2011. Despite such concern, what we know about longer term neighborhood housing vacancy has been limited, in part by a lack of good data. This article utilizes data from the U.S. Postal Service to explore changes in vacancy over a critical period of broader housing market recovery. It identifies the extent to which neighborhood characteristics predict changes in long‐term vacancy from 2011 to 2014 for the 50 largest metropolitan areas. High neighborhood vacancy rates persisted in some neighborhoods during this period, and these tended to be high‐poverty neighborhoods. Neighborhoods with more Hispanic and Asian residents experienced larger declines in long‐term vacancy. However, poorer neighborhoods lagged significantly. If a neighborhood had a poverty rate that was one standard deviation above—and a median income that was one standard deviation below—an otherwise comparable neighborhood, it was expected to see 13% more vacancies at the end of the period.

Have Distressed Neighborhoods Recovered? Evidence from the Neighborhood Stabilization Program

Abstract During the 2007–2009 housing crisis, concentrations of foreclosed and vacant properties created severe blight in many cities and neighborhoods. The federal Neighborhood Stabilization Program (NSP) was established to help mitigate distress in hard-hit areas by funding the rehabilitation or demolition of troubled properties. This paper analyzes housing market changes in areas that received investments during the second round of NSP funding, focusing on seven large urban counties. Grantees used NSP to invest in census tracts with high rates of distressed and vacant properties, and tracts that had previously received other housing subsidies. The median NSP tract received quite sparse investment, relative to the overall housing stock and the initial levels of distress. Analysis of housing market outcomes indicates the recovery has been uneven across counties and neighborhoods. In a few counties, there is some evidence that NSP2 activity is correlated with improved housing outcomes, primarily increased sales volume.

Have distressed neighborhoods recovered? Evidence from the neighborhood stabilization program

During the 2007–2009 housing crisis, concentrations of foreclosed and vacant properties created severe blight in many cities and neighborhoods. The federal Neighborhood Stabilization Program (NSP) was established to help mitigate distress in hard-hit areas by funding the rehabilitation or demolition of troubled properties. This paper analyzes housing market changes in areas that received investments during the second round of NSP funding, focusing on seven large urban counties. Grantees used NSP to invest in census tracts with high rates of distressed and vacant properties, and tracts that had previously received other housing subsidies. The median NSP tract received quite sparse investment, relative to the overall housing stock and the initial levels of distress. Analysis of housing market outcomes indicates the recovery has been uneven across counties and neighborhoods. In a few counties, there is some evidence that NSP2 activity is correlated with improved housing outcomes, primarily increased sales volume.

Fewer vacants, fewer crimes? Impacts of neighborhood revitalization policies on crime

The relationship between neighborhood physical environment and social disorder, particularly crime, is of critical interest to urban economists and sociologists, as well as local governments. Over the past 50years, various policy interventions to improve physical conditions in distressed neighborhoods have also been heralded for their potential to reduce crime. Urban renewal programs in the mid-20th century and public housing redevelopment in the 1990s both subscribed to the idea that signs of physical disorder invite social disorder. More recently, the federal Neighborhood Stabilization Program (NSP) provided funding for local policymakers to rehabilitate or demolish foreclosed and vacant properties, in order to mitigate negative spillovers—including crime—on surrounding neighborhoods. In this paper, we investigate the impact of NSP investments on localized crime patterns in Cleveland, Chicago and Denver. Results suggest that demolition activity in Cleveland decreased burglary and theft, but do not find measurable impacts of property rehabilitation investments—although the precision of these estimates are limited by the number of rehabilitation activities.

Fewer Vacants, Fewer Crimes? Impacts of Neighborhood Revitalization Policies on Crime

The relationship between neighborhood physical environment and social disorder, particularly crime, is of critical interest to urban economists and sociologists, as well as local governments. Over the past 50 years, various policy interventions to improve physical conditions in distressed neighborhoods have also been heralded for their potential to reduce crime. Urban renewal programs in the mid-20 th century and public housing redevelopment in the 1990s both subscribed to the idea that signs of physical disorder invite social disorder. More recently, the federal Neighborhood Stabilization Program (NSP) provided funding for local policymakers to rehabilitate or demolish foreclosed and vacant properties, in order to mitigate negative spillovers—including crime—on surrounding neighborhoods. In this paper, we investigate the impact of NSP investments on localized crime patterns in Cleveland, Chicago and Denver. Results suggest that demolition activity in Cleveland decreased burglary and theft, but do not find measurable impacts of property rehabilitation investments—although the precision of these estimates are limited by the number of rehabilitation activities.

Neighborhood Stabilization Program

Neighborhood Stabilization Program

What Do the Neighbors Think? Assessing the Community Impact of Neighborhood Stabilization Efforts

In the wake of the mortgage crisis, neighborhood stabilization efforts have been launched to allay some of the "secondary effects of the mortgage crisis -- the economic and social impacts on properties, neighborhoods, and communities." One example of this kind of effort is the federally funded Neighborhood Stabilization Program (NSP), which provided several million dollars to the City of Boston in order to acquire, rehabilitate, and resell abandoned, foreclosed homes in high-foreclosure neighborhoods. The author discusses preliminary findings from ongoing research exploring the effect of foreclosure and NSP intervention on neighborhood social stability.

Fewer Vacants, Fewer Crimes? Impacts of Neighborhood Revitalization Policies on Crime

The relationship between neighborhood physical environment and social disorder, particularly crime, is of critical interest to urban economists and sociologists, as well as local governments. Over the past 50 years, various policy interventions to improve physical conditions in distressed neighborhoods have also been heralded for their potential to reduce crime. Urban renewal programs in the mid-20th century and public housing redevelopment in the 1990s both subscribed to the idea that signs of physical disorder invite social disorder. More recently, the federal Neighborhood Stabilization Program (NSP) provided funding for local policymakers to rehabilitate or demolish foreclosed and vacant properties, in order to mitigate negative spillovers—including crime—on surrounding neighborhoods. In this paper, we investigate the impact of NSP investments on localized crime patterns in Cleveland, Chicago and Denver. Results suggest that demolition activity in Cleveland decreased burglary and theft, but do not find measurable impacts of property rehabilitation investments—although the precision of these estimates are limited by the number of rehabilitation activities.

Analyzing Census tract foreclosure risk rates in mature and developing suburbs in the United States

In the early 2000s, many policymakers and researchers became concerned about suburban decline. The recent national subprime, foreclosure, and economic crises have intensified these concerns. In this study, I analyze the 2010 Neighborhood Stabilization Program 3, the 2005/2009 American Community Survey, and other databases with descriptive statistics and weighted least squares regression models. Differentiating among tracts in central cities, mature suburbs, and developing suburbs in the 100 largest metropolitan statistical areas, I examine what factors determine the Census tract foreclosure risk rate and what differentiates these factors. Results show that mature suburbs have foreclosure rates similar to central cities and that similar factors determine the neighborhood foreclosure risk rates among central cities and mature and developing suburbs to a different degree. These results demonstrate the need for place-based interventions.

In the blind spot: the federal government’s intervention in the housing crisis in suburban California

The federal government responded to the foreclosures crisis by implementing several policies. The Neighborhood Stabilization program (NSP) in 2009, a mitigation policy, aimed at helping local governments to buy, rehabilitate and sell foreclosed homes to mitigate the effects of the foreclosures in the most affected neighborhoods. This paper focuses on the allocation methodology used in this program to explain why some of the most affected places in California didn’t receive adequate funds to fight foreclosures. The initial version of the NSP targeted mainly the largest cities, but left suburban municipalities — yet deeply affected by the foreclosures — with reduced or delayed funds. The use of estimations of foreclosures number to allocate the money, as well as the lack of cooperation between suburban local governments also participated to inefficiently allocate the NSP money, and suggests that urban policies need to be adapted to better fit the change of urban structure in the US.

Have Distressed Neighborhoods Recovered? Evidence from the Neighborhood Stabilization Program

During the 2007-2009 housing crisis, concentrations of foreclosed and vacant properties created severe blight in many cities and neighborhoods. The federal Neighborhood Stabilization Program (NSP) was established to help mitigate distress in hard-hit areas by funding the rehabilitation or demolition of troubled properties. This paper analyzes housing market changes in areas that received investments during the second round of NSP funding, focusing on seven large urban counties. Grantees used NSP to invest in census tracts with high rates of distressed and vacancy properties, and tracts that had previously received other housing subsidies. The median NSP tract received quite sparse investment, relative to the overall housing stock and the initial levels of distress. Analysis of housing market outcomes indicates the recovery has been uneven across counties and neighborhoods. In a few counties, there is some evidence that NSP2 activity is correlated with improved housing outcomes.

Which Way to Recovery? Housing Market Outcomes and the Neighborhood Stabilization Program

To help communities recover from the foreclosure crisis, Congress enacted a set of policies known as the Neighborhood Stabilization Program (NSP). NSP's objective was to mitigate the impact of foreclosures on neighboring properties, through reducing the stock of distressed properties and removing sources of visual blight. This paper presents evidence on production outcomes achieved through the second round of NSP funding (NSP2), and discusses the housing market context under which the program operated from 2010 to 2013. Two key findings emerge. First, local grantees undertook quite different approaches to NSP2. The type and scale of activity, expenditures per property and spatial concentration vary widely across grantees. Second, census tracts that received NSP2 investment had poor economic and housing market conditions prior to the program, but generally saw improved housing markets during the program's implementation period, as did non-NSP2 tracts in the same counties. Based on these findings, we outline topics and suggested approaches for additional research.

Which Way to Recovery? Housing Market Outcomes and the Neighborhood Stabilization Program

To help communities recover from the foreclosure crisis, Congress enacted a set of policies known as the Neighborhood Stabilization Program (NSP). NSP’s objective was to mitigate the impact of foreclosures on neighboring properties, through reducing the stock of distressed properties and removing sources of visual blight. This paper presents evidence on production outcomes achieved through the second round of NSP funding (NSP2), and discusses the housing market context under which the program operated from 2010 to 2013. Two key findings emerge. First, local grantees undertook quite different approaches to NSP2. The type and scale of activity, expenditures per property and spatial concentration vary widely across grantees. Second, census tracts that received NSP2 investment had poor economic and housing market conditions prior to the program, but generally saw improved housing markets during the program’s implementation period, as did non-NSP2 tracts in the same counties. Based on these findings, we outline topics and suggested approaches for additional research.

The Neighborhood Stabilization Program: Stable for Whom?

The Neighborhood Stabilization Program (NSP) was established after the 2008 housing crisis to provide funding to local governments and other housing providers for stabilizing communities hardest hi...