City of Albuquerque Neighborhood Stabilization Program (NSP)

The City of Albuquerque was awarded $7,000,000 of Neighborhood Stabilization Program funds through the State of New Mexico Department of Finance and Administration in July, 2009 to acquire foreclosed residential properties for the purpose of rehabilitation and sale or rental to income eligible families.  These funds were provided to the State of New Mexico by the Department of Housing and Urban Development (HUD).  All NSP funds were obligated in August, 2010, one month before the HUD obligation deadline. 

Click here to view the Progress Report on the status of the City’s Neighborhood Stabilization Program (NSP).

Click here to see a PowerPoint presentation showing before and after photos of NSP properties. When the file downloads, press the 'F5' key on your keyboard to start the presentation.

NSP Homebuyer Guidelines

To qualify to purchase a home in the City of Albuquerque’s Neighborhood Stabilization Program, the homebuyer applicant:

• Must be purchasing the home as their principal residence;
• Must be income eligible, which means the annual household income cannot exceed 120% of the area median income (AMI) per HUD Income Guidelines which change annually  – click here for 2010 Income Guidelines;  and 
• Must have completed 8 hours of Homebuyer Education and receive a Home Ownership Education Certificate through the Greater Albuquerque Housing Partnership (GAHP) – click here to contact GAHP.

City of Albuquerque Neighborhood Stabilization Program Incentives:

1.  A grant of up to $4,000 is available for closing costs to all NSP homebuyers.

2.  A zero percent, non-amortizing soft second mortgage loan (no monthly payments), which may not exceed $50,000, is available to households who are qualified through GAHP – click here to contact GAHP. 

EXAMPLE:

                  Sales Price:                                     $170,000

                  First Mortgage-qualifies for:                $150,000

                  Soft Second Mortgage-qualifies for       $ 20,000

• The amount of the soft second mortgage loan is determined based upon the sales price of the home minus the amount of the first mortgage loan from a commercial lending institution for which the homebuyer qualifies.

• The soft second mortgage loan is not forgivable and is paid back to the City upon sale, assumption or transfer of the property, conversion to income property, or upon refinance with cash out. 
• Click here for a copy of the Soft Second Mortgage and Promissory Note.

3. A down payment assistance loan is available in an amount not to exceed 50% of the down payment required by the First Mortgage Loan.  However, the amount of the down payment assistance PLUS the amount of the Soft Second Mortgage may not exceed $50,000.  The purchaser must provide the remaining amount of the down payment required from another source.

1. Other Important Information:

   1. 1. The sales price of the home is set by the City Neighborhood Stabilization Program (NSP) and is the total of the cost of acquisition plus the cost of the rehabilitation.
2. 2. There are two approvals required for the homebuyer to purchase an NSP home:

First Approval: By the Lender for the first mortgage loan

• to determine the monthly payment the homebuyer can afford.

Second Approval: Contact GAHP

• To determine Program Eligibility
• To be approved for the City second mortgage loan and to determine the amount for which the homebuyer qualifies.
• Click here to contact GAHP.

3. The Rehabilitation of the home is based upon City Rehabilitation Standards and City Code compliance. 

Contact Us

For information about the Neighborhood Stabilization Program, please contact Valerie Bargas at vbargas@cabq.gov.

To purchase an NSP home, contact the Omni Development Group at (505) 792-4430 or visit their website at www.omni-online.com.

To rent an NSP unit, contact T&C Management at (505) 268-1181 or visit their website at www.tandcmanagement.com.