Neighborhood Stabilization Initiative

The Neighborhood Stabilization Initiative (NSI) program spans 18 hard-hit metropolitan areas

NSI was jointly developed by the Federal Housing Finance Agency (FHFA) and Fannie Mae and Freddie Mac to stabilize neighborhoods hardest hit by the housing downturn and reduce the inventory of real estate owned (REO) properties held by Fannie Mae and Freddie Mac. NCST was selected as the national nonprofit partner due to our unique blend of policy expertise and on-the-ground experience working with local affordable housing and community development organizations (community buyers) and local government to eliminate the blight caused by vacant and foreclosed properties and severely delinquent mortgages in distressed communities.

NSI began as a pilot program in Detroit, Michigan and was expanded to Cook County, Illinois. Now the program is in 18 strategic markets that continue to have large concentrations of distressed and low-value REO inventory.

The metropolitan areas include:

Akron, OH Atlanta-Sandy Springs-Roswell, GA Baltimore-Columbia-Towson, MD
Chicago-Naperville-Elgin, IL Cincinnati, OH-KY-IN Cleveland-Elyria, OH
Columbus, OH Dayton, OH Detroit-Warren-Dearborn, MI
Jacksonville, FL Miami-Fort Lauderdale-West Palm Beach, FL New York-Newark-Jersey City, NY-NJ-PA
Orlando-Kissimmee-Sanford, FL Philadelphia-Camden-Wilmington, PA-NJ-DE Pittsburgh, PA
St. Louis, MO Tampa-St. Petersburg-Clearwater, FL Toledo, OH

For more information about these areas, see this interactive map on

NSI goals:

  • Help communities address the very low-value distressed properties not properly served by the market. These properties face a number of challenges, including rehabilitation costs that exceed post-rehabilitation value, and when not handled properly, may potentially depress local housing markets, endanger neighbors, create blight, and burden municipalities.
  • Increase the number of families able to stay in their current homes through loan modifications.
  • Effectively match distressed properties with responsible community buyers for property renovation and resale to prevent further blight and provide affordable housing opportunities.
  • Assist distressed communities in executing their building demolition plans.
  • Support a properly functioning housing market and bolster local economies.

Our community buyers review and purchase foreclosed properties through REOMatch®, our online property transaction portal. For more information about becoming an NCST community buyer, please contact us.