Neighborhood Stabilization Initiative

The Neighborhood Stabilization Initiative (NSI) program spans 28 hard-hit metropolitan areas

NCST operates the NSI, through which we partner with the Federal Housing Finance Agency (FHFA) and Fannie Mae and Freddie Mac to stabilize neighborhoods hardest hit by the housing downturn. Through the NSI, NCST provides local housing and community development organizations (community buyers) the opportunity to purchase real estate owned (REO) properties held by Fannie Mae and Freddie Mac before they are marketed to the general public.

The NSI operates in 28 strategic markets that continue to have large concentrations of distressed and low-value REO inventory. The program was initiated as a pilot in both Detroit, MI, and Cook County, IL, and was then further expanded in December 2015 to 18 different MSAs with high volumes of low-value REO inventory, and in December 2017 to 10 new markets.

The metropolitan areas include:

Akron, OH Albany-Schenectady-Troy, NY Atlanta-Sandy Springs-Roswell, GA
Baltimore-Columbia-Towson, MD Birmingham-Hoover, AL Chicago-Naperville-Elgin, IL
Cincinnati, OH-KY-IN Cleveland-Elyria, OH Columbus, OH
Dayton, OH Detroit-Warren-Dearborn, MI Flint, MI
Indianapolis-Carmel-Anderson, IN Jacksonville, FL Kansas City, MO-KS
Louisville/Jefferson County, KY-IN Miami-Fort Lauderdale-West Palm Beach, FL Milwaukee-Waukesha-West Allis, WI
New York-Newark-Jersey City, NY-NJ-PA Orlando-Kissimmee-Sanford, FL Palm Bay-Melbourne-Titusville, FL
Philadelphia-Camden-Wilmington, PA-NJ-DE Pittsburgh, PA St. Louis, MO
Tampa-St. Petersburg-Clearwater, FL Toledo, OH Trenton, NJ
Youngstown-Warren-Boardman, OH-PA

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.
  • 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, stabilize home values, 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.