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Key Features of NRP Phase II Operations

On July 24, 2000 the NRP Policy Board adopted guidelines for how the NRP would operate in Phase II. Listed below are some of the key features contained in these guidelines. Follow the links to more detailed descriptions about the Phase II neighborhood planning process, the Phase II allocation of funds, and the Phase II Affordable Housing/Commercial Corridor Reserve Fund structure.

I. Neighborhood Planning Process
  • Neighborhoods will continue to drive the planning process with neighborhoods approving the use of funds dedicated to action plans, affordable housing and commercial corridors.

  • Neighborhoods start Phase II planning after expending 85% or contracting 95% of their Phase I allocation.
II. Allocating Funds
  • Of the $150 million available in Phase II, approximately $130 million in Phase II funds will go to neighborhoods for Action Plans, $16 million will be reserved for affordable housing and $4 million will be reserved for commercial corridors. All affordable housing and commercial corridor projects using Reserve Funds must be reviewed and sponsored by a neighborhood.

  • Neighborhoods with the greatest needs will receive a higher proportion of resources. In the Phase I formula, neighborhood housing and neighborhood poverty variables had a combined average weighting of 48%. In Phase II, those variables will have a combined average weighting of 87%. Furthermore, a neighborhood's population and number of housing units will become less of a factor in determining its allocation.

  • Neighborhoods will continue to have the flexibility to include housing and non-housing investments in their plan. However, each neighborhood's non-housing allocations will be released in a way that ensures the Program meets the State-mandated 52.5% housing requirement.

  • Neighborhoods that invested a larger percentage of their Phase I NRP funds in housing activities will have a larger percentage of their Phase II funds released for non-housing activities. Conversely, neighborhoods that spent a smaller percentage of funds on housing during Phase I will have to spend more money on housing during Phase II.
III. Affordable Housing/Commercial Corridor Reserve Fund
  • Neighborhoods that choose to use 15% or more of their Phase II allocation for affordable housing initiatives (as defined in the NRP Affordable Housing Reserve Fund guidelines) and/or for a donation to the NRP Affordable Housing Reserve Fund will have a larger percentage of their plan available for immediate release.

  • A total of $16 million will be put in a reserve fund dedicated to affordable housing, and $4 million will be reserved for commercial corridors. Projects requesting Reserve Fund dollars must be reviewed and sponsored by a neighborhood. The Policy Board encourages joint neighborhood projects and the spending of these funds across as many neighborhoods as possible.


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