The expanded Neighborhood Stabilization Initiative (NSI) program recently marked its one-year anniversary, according to an announcement from the National Community Stabilization Trust (NCST). The program, through NCST, provides organizations working to stabilize neighborhoods with access to REO properties from Fannie Mae and Fannie Mac.
“The NSI program assists those communities in our nation whose housing markets continue to struggle,” said Rob Grossinger, President, NCST. “By providing this “first look” to organizations supporting neighborhoods, Fannie Mae and Freddie Mac strengthen local housing markets and provide new opportunities for homeownership and affordable rental.”
The announcement said that as a result of the initial program’s success, on December 1, 2015, Fannie Mae and Freddie Mac expanded NSI from the two pilot areas to a total of 18 strategic markets with large concentrations of distressed and low-value inventory.
Further, according to NCST, during the past year, buyers have purchased 1,372 NSI properties for approximately $92 million.
“In these markets, acquisition plus renovation costs often exceed the post-renovation value,” said Julia Gordon, EVP, NCST. “By helping our local partners save on acquisition costs, NSI has enabled them to return distressed properties to the housing stock in rehabilitated condition and to help build wealth in communities that have been left behind by the housing recovery.”
Additionally, the announcement states that Fannie Mae and Freddie Mac have made additional improvements that will make NSI more effective for low-value properties and for properties in higher-cost areas.
“As we work to lift home values in metro Atlanta‘s distressed neighborhoods, it is important that REO holdings be part of the solution. The NSI program is providing our organization with a great opportunity to boost our acquisition of single-family homes, accounting for more than 30 percent of our production in the last 12 months,” said John O’Callaghan, President and CEO of Atlanta Neighborhood Development Partnership.