As a result of the mounting housing crisis, the U.S. economy in 2008 declined significantly. Comprising over a fifth of Gross Domestic Product nationally, the fallout of the housing market ushered in a whole series of economic crises in U.S. cities. As a part of the Obama Administration’s response to the crises, they initiated and Congress approved stimulus programs that targeted neighborhoods greatly affected by the economic downturn. One such program is the Neighborhood Stabilization Program (NSP). This program was formulated to immediately address unprecedented foreclosures and abandonment in 2008. In 2009 and 2010 subsequent re-authorizations helped to continue efforts to stabilize neighborhoods. Nationally, over 500 grantees have received funds estimating $6 billion. In this paper we ask the question, are there positive local economic development impacts that can be reported now, only four years after the first check was written to execute the acquisition, rehabilitation/construction, and mortgaging of foreclosed and vacant properties? Utilizing a method of cluster analysis typically used in geography, our methods allow us to examine the immediate areas around the parcels of properties acquired. In the half mile buffers we are looking to examine key economic development, housing market, and job variables to provide an early picture of how neighborhood stabilization affected local neighborhoods in the Los Angeles metropolitan era. We will compare the pre NSP period (2007) with the post NSP period (2011). Where would grantee neighborhoods be without the creation of the NSP program? Taking into account the characteristics of the neighborhood, the results will shed light on the immediate effects of putting foreclosed and abandoned properties back in service.
