The Neighborhood Stabilization Program (NSP) is part of the Housing and Economic Recovery Act of 2008 (HERA).  Oregon Housing and Community Services (OHCS) was allocated $19.6 million to administer NSP according to guidelines outlined by HERA and based on the NSP substantial amendment submitted to U.S. Housing and Urban Development (HUD). OHCS awarded 60% of its NSP funds to Community Development Block Grant entitlement communities including the City of Medford.

The NSP was created to encourage the purchase and/or redevelopment of foreclosed properties located within eligible areas.   The targeted Block Areas include neighborhoods with high rates of foreclosure and potential for abandonment.  Foreclosed upon refers to a property that under state or local law, the mortgage or tax foreclosure is complete, title for the property has been transferred from the former homeowner.

Individuals with an annual gross household income which does not exceed 120% of the median imcome are eligible for the NSP program. Homebuyers must be able to contribute up to 1% of the purchase price or $1,000 which ever is greater.  In addition, homebuyers must complete an approved eight (8) hour homebuyer training class ("The ABC's of Homebuying" or "Realizing the American Dream") by an OHCS Approved Home Buyer Training Provider.