In 2009, KPHI was awarded $1.3 M in Federal Neighborhood Stabilization Program grant funds by Alaska Housing Finance Corporation for the purpose of stabilizing Kenai Peninsula neighborhoods experiencing home foreclosures. The grant funds enabled KPHI to purchase four foreclosed homes at a discount and rehabilitate them for purchase or rent by low income families (earning at or below 50% Area Median Income) and moderate income families (earning up to 120% of Area Median Income.)
The NSP also helps prevent future foreclosures by allowing KPHI to offer down-payment and closing cost assistance to NSP homebuyers and requiring housing counseling for families receiving homebuyer assistance. In addition, future homebuyers will be protected by ensuring that new homebuyers under this program obtain a mortgage loan from a lender who agrees to comply with sound lending practices.
To date, KPHI has expended all NSP funds budgeted for acquisition, has rented one rehabilitated NSP property and is beginning to rehabilitate its other NSP acquisitions for eventual sale to eligible buyers.