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Neighborhood Stabilization Initiative (NSI)


The Neighborhood Stabilization Initiative (NSI) was designed to stabilize neighborhoods hardest hit by the housing downturn. It was jointly developed by the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac and includes strategies for disposing of the inventory of real estate owned (REO) properties held by Fannie Mae and Freddie Mac. Some particular markets have large concentrations of distressed and low-value REO properties as well as large volumes of loans that had been delinquent for more than one to two years that are likely to become REO.

Given the unique challenges presented by these markets—high vacancy rates, weak for-sale markets, steep home-price declines—Fannie Mae and Freddie Mac selected the National Community Stabilization Trust (NCST), a national non-profit organization experienced in stabilization efforts for distressed communities to implement the NSI. Working together, they leverage their ties to "boots on the ground" community organizations and local non-profits, and work closely with local governments to make timely and informed decisions about the best treatment of individual properties.

NSI was initiated as a pilot in the city of Detroit, Michigan in May 2014, and was then expanded to Cook County, Illinois in April 2015. Building on the lessons learned from the pilot, NSI was developed into a program and was expanded in December 2015 to 18 different metropolitan statistical areas with high volumes of low-value REO inventory. In December 2017, 10 additional markets were designated for further expansion. Currently, Fannie Mae operates their neighborhood stabilization efforts through their Community First Platform and has expanded the program to new markets across the country. Freddie Mac continues to administer their neighborhood stabilization efforts through NCST.


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