Neighborhood Stabilization Program (NSP)

If you are interested in applying to purchase a home through the Neighborhood Stabilization Program, please print and fill out the NSP Application (PDF file) and send it to the address on the last page.

The City of Reno, City of Sparks and Washoe County will be receiving $4,697,642 from the NSP grant award. These NSP funds will assist in acquiring 31 to 60 homes for resale or for HOME rental opportunities for low, moderate, and middle income households with incomes up to 120% of Washoe County’s median income.

These home ownership and low cost rental opportunities will be located in three areas in Washoe County:

• The portion of Stead between Interstate 395 and Lear Boulevard extending from Stead Boulevard east for 5,000 feet. (Map)
• Sun Valley in unincorporated Washoe County. (Map)
• The portion of Sparks bounded by Sparks Boulevard to the East, Queen Way to the North, and the city boundaries on the west and south. (Map)

Following are two options being offered under the NSP. Under each option, preference will be given to current RHA tenants who have demonstrated excellent rent payment and housekeeping practices:

1. Home ownership

   Acting on behalf of the Washoe County HOME Consortium, the Reno Housing Authority (RHA) will utilize NSP funds to purchase foreclosed homes in the three designated target areas for re-sale on favorable terms to households meeting set criteria.

Minimum qualifications for households interested in the NSP Home Ownership program include:

• Applicant must be a first time homebuyer, as defined by HUD, which requires that the applicant meet one of the following criteria:
• An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers.)
• A single parent who has only owned with a former spouse while married.
• An individual who is a displaced homemaker and has only owned with a spouse.
• An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.
• An individual who has only owned a property that was not in compliance with State, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure.
• Income must fall between 50% and 120% of area median income (AMI)
• Eligible to qualify for a standard fixed-rate 15-30 year mortgage to purchase a home under the State of Nevada Housing Division’s First Time Homebuyer Program, Charles Schwab First Time Homebuyer Program, FHA, VA, or other conventional mortgage program.
• Down payment from personal funds of at least 3.5% of purchase price. (No gifts are allowed.)
• Stable or increasing income history for the past 24 months.
• FICO credit score of either 650 or higher, or acceptable non-traditional credit, with an overall debt-to-income ratio after purchase no higher than 38%.
• Successful completion of 8 hour HUD-certified homeowners’ training (Consumer Credit Affiliates or another RHA approved organization).


Sale of Homes by RHA


• All homes will be appraised before purchase.
• Sales price to homebuyers will be the lesser of:
• RHA’s actual cost of purchase plus rehabilitation and closing costs, or
• Appraisal after completion of rehabilitation.


• A $5,000 grant and a non-interest-bearing loan of $15,000 in NSP funds will be made to each household purchasing a home under this program.
• The $15,000 loan will be forgivable on an annually prorated basis over a 15 year period.
• If the property is sold, title is modified, or the property is no longer the buyer’s primary residence within the 15 year period, the unforgiven portion of the loan will be due and payable at that time.

Order of Offers



Homes under the NSP homeownership program will be offered on a first come, first serve basis for applicants who meet the qualifications and have completed all of the following:

• Submitted a completed application with all necessary documentation.
• Pre-qualified for a standard fixed-rate 15-30 year mortgage to purchase a home under the State of Nevada Housing Division’s First Time Homebuyer Program, Charles Schwab First Time Homebuyer Program, FHA, VA, or other conventional mortgage program.
• Down payment from personal funds of at least 3.5% of purchase price. (No gifts are allowed.)
• Successful completion of 8 hour HUD-certified homeowners’ training (Consumer Credit Affiliates or another RHA approved organization).



2. Rental Opportunities

   Rental opportunities under the NSP are for households with incomes at or below 50% of the AMI. These houses will be rented according to the low HUD HOME program rent guidelines. In order to ensure these properties are kept in good condition, they will be inspected at least every six months, and a home visit will be conducted with the potential renter at their current address by RHA staff prior to signing lease.

If you are interested in applying to rent NSP properties, please print and fill out the Rental Application (PDF file) and send it to the address on the last page.

Area Median Income (AMI)