Which Way to Recovery? Housing Market Outcomes and the Neighborhood Stabilization Program

FEDS Working Paper No. 2015-004

http://dx.doi.org/10.17016/FEDS.2015.004

42 Pages Posted: 21 Feb 2015

See all articles by Jenny Schuetz

Jenny Schuetz

Brookings Institution

Jonathan Spader

Harvard University - Joint Center for Housing Studies

Jennifer Buell

Abt Associates, Inc.

Kimberly Burnett

Abt Associates, Inc.

Larry Buron

Abt Associates, Inc.

Alvaro Cortes

Abt Associates, Inc.

Michael DiDomenico

Abt Associates, Inc.

Anna Jefferson

Abt Associates, Inc.

Christian L. Redfearn

University of Southern California - Sol Price School of Public Policy

Stephen Whitlow

Abt Associates, Inc.

Multiple version iconThere are 2 versions of this paper

Date Written: December 3, 2014

Abstract

To help communities recover from the foreclosure crisis, Congress enacted a set of policies known as the Neighborhood Stabilization Program (NSP). NSP's objective was to mitigate the impact of foreclosures on neighboring properties, through reducing the stock of distressed properties and removing sources of visual blight. This paper presents evidence on production outcomes achieved through the second round of NSP funding (NSP2), and discusses the housing market context under which the program operated from 2010 to 2013. Two key findings emerge. First, local grantees undertook quite different approaches to NSP2. The type and scale of activity, expenditures per property and spatial concentration vary widely across grantees. Second, census tracts that received NSP2 investment had poor economic and housing market conditions prior to the program, but generally saw improved housing markets during the program's implementation period, as did non-NSP2 tracts in the same counties. Based on these findings, we outline topics and suggested approaches for additional research.

Keywords: Federal housing policy, Fiscal federalism, Housing and real estate, Mortgages and credit, Urban redevelopment

JEL Classification: H5, H7, R1, R3, R5

Suggested Citation

Schuetz, Jenny and Spader, Jonathan and Buell, Jennifer and Burnett, Kimberly and Buron, Larry and Cortes, Alvaro and DiDomenico, Michael and Jefferson, Anna and Redfearn, Christian L. and Whitlow, Stephen, Which Way to Recovery? Housing Market Outcomes and the Neighborhood Stabilization Program (December 3, 2014). FEDS Working Paper No. 2015-004, http://dx.doi.org/10.17016/FEDS.2015.004, Available at SSRN: https://ssrn.com/abstract=2561527 or http://dx.doi.org/10.2139/ssrn.2561527

Jenny Schuetz (Contact Author)

Brookings Institution ( email )

1775 Massachusetts Ave, NW
Washington, DC 20036
United States

Jonathan Spader

Harvard University - Joint Center for Housing Studies ( email )

1033 Massachusetts Ave, 5th Floor
Cambridge, MA 02138
United States

Jennifer Buell

Abt Associates, Inc. ( email )

55 Wheeler Street
Cambridge, MA 02138-1168
United States

Kimberly Burnett

Abt Associates, Inc. ( email )

55 Wheeler Street
Cambridge, MA 02138-1168
United States

Larry Buron

Abt Associates, Inc. ( email )

55 Wheeler Street
Cambridge, MA 02138-1168
United States

Alvaro Cortes

Abt Associates, Inc. ( email )

55 Wheeler Street
Cambridge, MA 02138-1168
United States

Michael DiDomenico

Abt Associates, Inc. ( email )

55 Wheeler Street
Cambridge, MA 02138-1168
United States

Anna Jefferson

Abt Associates, Inc. ( email )

55 Wheeler Street
Cambridge, MA 02138-1168
United States

Christian L. Redfearn

University of Southern California - Sol Price School of Public Policy ( email )

Los Angeles, CA 90089-0626
United States

Stephen Whitlow

Abt Associates, Inc. ( email )

55 Wheeler Street
Cambridge, MA 02138-1168
United States

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