Hennepin County has created homebuyer programs for the purchase, management and resale of foreclosed and abandoned properties. 

Buyers interested in NSP funds to help purchase home should do the following before shopping for a property:

  1. Read the full guidelines for the NSP Homebuyer Assistance Program and the NSP Homebuyer Rehabilitation Program and the Frequently Asked Questions;
  2. Contact Alyce Osborn by phone at 612-348-2205 or by e-mail at alyce.osborn@co.hennepin.mn.us to request an income eligibility application packet. We are only processing applications that we mailed out from our office; 
  3. Complete the application and return it with all required documentation, then we will determine if your household is income eligible for the Programs;
  4. Attend an eligible Home Stretch class by a HUD approved provider. If you have not attended a class, sign up as soon as possible, as the classes fill up fast;
  5. Find a Participating Loan Officer, from our list, who will provide an eligible first mortgage;
  6. Print a copy of the NSP Purchase Agreement Addendum to give to your real estate agent. The NSP Purchase Agreement must be attached to all purchase agreements;
  7. In order to provide a firm commitment of funds, we require 45 days from the date the buyer receives an eligibility letter from the county and has submitted a Purchase Agreement; and
  8. Contact us with any additional questions.

NSP Homebuyer Assistance Program

This program is to assist with neighborhood stabilization by providing financial assistance for low, moderate and middle income households to become homeowners in neighborhoods that have been impacted by the high rate of foreclosures. Hennepin County will provide NSP financing to assist buyers of vacant, foreclosed properties in a target area. The target areas for the NSP Homebuyer Assistance Program are located in Brooklyn Park, Brooklyn Center, Champlin, Crystal, New Hope and Richfield (funds for the cities of Crystal and Richfield are no longer available).


NSP Homebuyer Rehabilitation Program

This program is to assist with neighborhood stabilization by providing financial assistance for low, moderate and middle income households to become homeowners in neighborhoods that have been impacted by the high rate of foreclosures. Hennepin County will provide NSP financing to assist buyers to rehabilitate vacant, foreclosed properties they have purchased in a target area. The target areas for the NSP Homebuyer Rehabilitation Program are located in Brooklyn Park, Brooklyn Center, Champlin and Richfield.

NOTE:  The NSP Homebuyer Rehabilitation Program may not be accessible to all buyers. The buyer's lender must determine and approve the use of the NSP Homebuyer Rehabilitation Program loan with their available first mortgage loan products.

Background

The U.S. Department of Housing and Urban Development's (HUD) new Neighborhood Stabilization Program (NSP) provides emergency assistance to states and local governments for the redevelopment of abandoned and foreclosed homes. The focus of this program is the purchase, management and resale of foreclosed and abandoned properties for the purpose of stabilizing neighborhoods. The program was authorized under Title III of Division B of the Housing and Economic Recovery Act of 2008.

Hennepin County, as the lead agency of the Urban Hennepin County Community Development Block Grant (CDBG) Program, has received an allocation of $3,885,729 from HUD under NSP. In addition, Hennepin County submitted a competitive NSP application to Minnesota Housing Finance Agency (MN Housing) and was awarded $4,715,298.

Both awards required the County to complete the NSP Plan and an amendment to the Hennepin County Consortium 2008 Action Plan, prepared in accordance with the consolidated plan procedures for a substantial amendment. The County also entered in an NSP Grant Agreement with MN Housing.

A Tier I environmental assessment for the NSP was prepared and it was determined that these funds would not create a significant impact on the environment. This allowed Hennepin County to post and publish a Notice of Finding of No Significant Impact on the Environment.