Chairman Jeb Hensarling

Legislation

H.R. 861, the NSP Termination Act
Posted by on April 13, 2011

H.R. 861, introduced by Rep. Gary Miller (CA) on March 1, terminates the Neighborhood Stabilization Program (NSP) and prevents $1 billion from being spent on this program.


Background:
In 2008 the Democrats’ GSE bailout bill (the Housing and Economic Recovery Act) established the NSP with $4 billion in funding.  NSP provides taxpayer dollars to State and local governments to purchase, renovate, rebuild, and resell abandoned and foreclosed property. The Democrats added another $1.93 billion in funding to the NSP through the Obama stimulus plan in 2009 and another $1 billion in the Dodd-Frank Act.  The program has been plagued with problems.  Since its inception, NSP has lacked proper protocols that prevent the misuse of funds. The Inspector General for the Department of Housing and Urban Development (HUD) has identified multiple cases of misused NSP funds, and GAO has detailed HUD’s inadequate tracking of NSP funds.