This page describes how funds will be allocated during Phase II as approved by the NRP Policy Board on 7/24/00.

• Neighborhoods with the greatest needs will receive a higher proportion of NRP resources. In Phase I, the allocation formulae favored neighborhood size over neighborhood condition. In Phase II, the variables that measure the condition of a neighborhood will receive greater weighting relative to the variables that measure neighborhood size.
  
  
• Each neighborhood will be able to participate meaningfully in NRP Phase II.
  
  
• The extent to which a neighborhood was over or under its median allocation in Phase I will be factored into its Phase II allocation.
  
  
• Phase II will address the State mandate that 52.5% of NRP funds be spent on housing. Neighborhoods that allocate an insufficient amount of Phase I and Phase II funds to housing may be required, in the Program's latter years, to increase their housing allocations in order for the Program to meet this mandate.
  
  

1. Three variable clusters will be factored into the neighborhood allocations formulae:
   
   
   • neighborhood size - using population and number of housing units as variables
     
   • neighborhood poverty - using economic assistance cases and health statistics as variables
     
   • neighborhood housing - using number of substandard housing units and number of absentee-owned housing units as variables
     
   
   
2. As in Phase I, a neighborhood's Phase II allocation will be based on the median of fifteen formulae that provide a range of weightings for each of the variables listed above. Neighborhood housing and neighborhood poverty variables will be emphasized over the neighborhood size variables to assure that those neighborhoods with the greatest needs will receive a greater proportion of NRP funds.
   
   The amount that each neighborhood was over or under its Phase I median allocation will be factored in as an adjustment to its Phase II allocation.
   
   
3. An estimated Phase II allocation based on 1990 Census population figures is attached. A final Phase II allocation will be established by the Policy Board when the 2000 U.S. Census population figures become available (which is expected by April 2001). At that time, the other variables will be updated with the most current data available and the final allocations will be calculated.
   
   
4. Each neighborhood's Phase II Participation Agreement funds will be drawn from its Phase II plan allocation (unlike Phase I, which provided such funds from a separate, central pool of NRP funds).
   
   
5. In Phase II, neighborhoods will continue to have the flexibility to include housing and non-housing investments in their plan. Neighborhoods will have immediate access to all housing and housing-related allocations. However, each neighborhood's non-housing allocations will be released in a way that will ensure that the Program will meet the State-mandated 52.5% housing requirement.
   
   As defined in the tables below, a fixed percentage of a neighborhood' total Phase II allocation will be available upon plan approval for non-housing strategies in the neighborhood action plan. Neighborhoods that invested a larger percentage of their Phase I NRP funds in housing activities will have a larger percentage of their Phase II NRP allocation released for non-housing activities.
   
   If a neighborhood's approved Phase II non-housing amount (as a percentage of the neighborhood's total approved allocation) is less than the percentage to be released in the tables below, all of its non-housing allocations would be immediately available.
   
   Thresholds for Releasing Phase II Funds
   
   

   Neighborhood's Phase I Housing Percentage	% of Neighborhood's Total Phase II Allocation Released for Non-Housing	% of Neighborhood's Phase II Allocations Immediately Released	Phase II Housing % Needed for Immediate Release of All Funds
   60% +	up to 40%	100%	60%
   40% to 60%	up to 35%	100%	65%
   less than 40%	up to 30%	100%	70%

   
   Any funds not initially released for non-housing activities will be held back until the Policy Board determines that the housing mandate will be met. However, the Policy Board will review progress toward this mandate on an annual basis to determine whether the percentage of funds released for non-housing uses can be increased.
   
   
6. 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.
   
   Thresholds for Releasing Phase II Funds
   (with 15% or more for Affordable Housing)
   
   

   Neighborhood's Phase I Housing Percentage	% of Neighborhood's Total Phase II Allocation Released for Non-Housing	% of Neighborhood's Phase II Allocations Immediately Released	Phase II Housing % Needed for Immediate Release of All Funds
   60% +	up to 45%	100%	55%
   40% to 60%	up to 40%	100%	60%
   less than 40%	up to 35%	100%	65%

   
   
7. If the Policy Board determines that the citywide housing requirement is not being met through neighborhood plan allocations, it may decide that all neighborhoods should bear some of the responsibility for achieving the Program's housing requirement.
   
   The Policy Board may require those neighborhoods with insufficient housing investment in Phase I and II combined to (1) modify their plans to incorporate additional housing investment; (2) partner with a neighborhood that can utilize additional housing investment; or (3) allocate some funds to the citywide NRP Affordable Housing Reserve Fund.
   
   
8. Early Access funds approved for a neighborhood for non-housing uses must be less than the amount of non-housing funds available to that neighborhood for immediate release.

See the Preliminary NRP Phase II Allocations

Key Features of NRP Phase II

Back to Phase II Index Page