Neighborhood Program

CITY OF LA Neighborhood Stabilization Program (NSP)




Welcome to the City of Los Angeles’ “Walk‐In” Purchase Assistance Program (WIP). This program provides deferred payment second mortgages to first time homebuyers seeking to acquire a foreclosed or abandoned home. It also provides deferred payment loans to repair blighted properties after they have been urchased. The information that follows provides background and an overview of he program.

Housing and Economic Recovery Act of 2008 On July 30, 2008, the President of the United States signed the Housing and Economic Recovery Act of 2008 into law. The President’s signature approved several new initiatives and substantial reforms to address the nation’s current housing situation. One key element of the new law important to State and local governments is nearly $4 billion in new funds made available for “the redevelopment of abandoned and foreclosed upon homes and residential properties.”

The U.S. Department of Housing and Urban Development’s (HUD) new Neighborhood Stabilization Program (NSP)( ) provides emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. The City of Los Angeles has received a grant of approximately $33 million dollars to assist home buyers and nonprofit housing development organizations to purchase and rehabilitate foreclosed or abandoned homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. Approximately $16 million dollars will be spent to create new homeownership opportunities; the remaining funds will be used to create affordable rental housing for low income families.

HUD’s Requirements In order to use these funds, HUD requires that :

  • The property must be foreclosed upon, that is, the title for the property has been transferred from the former homeowner under some type of foreclosure proceeding or transfer in lieu of foreclosure, in accordance with state or local law.
  • Property must be vacant at time of listing.
  • The property can be any type of permanent residential dwelling unit, such as detached single family structures, townhouses, condominium units, and manufactured homes (where treated under state law as real estate not personal property). Because this is also a neighborhood stabilization program, buyers are encouraged to purchase properties that face the public right‐of‐way such as units, single family homes or townhomes rather than stacked condominiums.
  • Properties must be appraised by a state certified residential or general appraiser. The appraisal must be done within 60 days of the final offer to purchase.
  • When buying foreclosed homes from lenders or other mortgagees, the purchase price must be at a discount from the appraised value. HUD requires that the home buyer must seek the “maximum reasonable discount” from the seller. The minimum discount is 1% for each NSP property.
  • City must send HUD‐required certified letter with return receipt to seller stating that City will not use eminent domain powers to purchase the property. HUD is requiring this letter because the buyer may get a loan from the City that will use NSP funds.
  • Properties must be located within an NSP Priority Area of the City of Los Angeles. Please visit the Los Angeles Housing Department’s (LAHD) website at to view maps of the NSP Priority Areas and to determine whether the house is in an eligible area.
  • Households whose incomes are at or below 120% of area median income are eligible for this program. The following chart shows the maximum income limits.
Contact Information
Heather Smith
(213) 808-8973
[email protected]

Jonathan Santiago
(213) 808-8963
[email protected]

Mario Melgar
(213) 808-8974
[email protected]


All Applicants applying for the LAHD Purchase Assistance Programs are

required to attend an eight (8) hour homebuyer education course given by an

LAHD Approved Homebuyer Education Provider.


2010 Wilshire Blvd., Suite 604

Los Angeles, Ca 90057

(213) 484-1475

Languages: English and Spanish


Korean Churches for Community

Development (KCCD)

3550 Wilshire Blvd., Suite 922

Los Angeles, Ca 90010

(213) 955-1500

Languages: English and Korean


New Economics for Women (NEW)

303 South Loma Drive

Los Angeles, Ca 90017

(213) 483-2060 ext. 106

Languages: English and Spanish

East LA Community Corporation (ELACC)

530 South Boyle Avenue

Los Angeles, Ca 90033

(323) 269-4214

Languages: English and Spanish


LA Neighborhood Housing Services (LANHS)

3926 Wilshire Blvd., Suite 200

Los Angeles, Ca 90010

(213) 381-2862

Languages: English and Spanish


Shalom Center

2975 Wilshire Blvd., Suite 415

Los Angeles, Ca 90010

(213) 380-3700

Languages: English and Korean



West Angeles Comm. Dev. Corp. (WACDC)

6028 Crenshaw Blvd.

Los Angeles, CA 90043

(323) 751-3440 ext. 29

Languages: English


Please note that the information above may change. Please contact the

agencies directly to obtain current information.

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