Great news!  I was able to get my hands on the fact sheet straight from the city of Phoenix.  Here it is in all its entirety:

Neighborhood Stabilization Program (NSP) Homeownership Assistance Fact Sheet

NSP Program Overview

As part of the Housing and Economic Recovery Act (HERA), passed by Congress in July 2008, $3.92 billion was provided to communities hardest hit by residential foreclosures and mortgage delinquencies. The city of Phoenix received $39,478,000 in Neighborhood Stabilization Program

(NSP) funds to help families purchase foreclosed homes at a discount, which in turn helps stabilize neighborhoods. NSP Homeownership Assistance funds are for down payment and closing cost assistance for eligible homebuyers.

Homeownership Assistance Description

The NSP Homeownership Assistance Program provides a $15,000 loan for down payment and closing cost assistance for buyers of foreclosed homes anywhere in the city of Phoenix. The full amount of the loan is paid back to the city when the homebuyer sells the home or refinances. The program targets foreclosed single family homes, townhouses and condominiums (condo conversions are not eligible) that meet HUD Housing Quality Standards (HSQ). The Homeownership Assistance program is for down payment and closing cost assistance only and cannot be used to fund rehabilitation activities.

Eligible Homebuyer

Eligible families can earn up to 120 percent of area median income (AMI), which is based on family size. In determining a family’s income, all wages and salaries of all family members over age 18 are considered as well as other sources of income.

Family Size 120% AMI Income

1 $53,950

2                         $61,650

3                         $69,350

4                         $77,050

5                         $83,200

6                         $89,400

7                         $95,550

8                         $101,700

Families must be FHA creditworthy and have completed the NSP-required eight-hour Homeownership Education and Credit Assessment counseling. Families must maintain the property as their principal residence.

Eligible Property

To be eligible for NSP Homeownership Assistance funds, properties must meet the following requirements:

• Located in the city of Phoenix
• Foreclosed and have changed title
• Appraised within 60 days of the purchase contract
• Purchase contract must contain four contingencies:
• Sales price at least 15 percent below appraised value
• Property clear of the city’s top eight neighborhood code violations (see phoenix.gov/CLEANPHXltopseng.pdf)
• Pass inspection according to HQS before close of escrow
• Signed “Lead Disclosure Form” from seller for properties built pre-Jan. l, 1978

Program Description

The NSP Homeownership Assistance program consists of three-phases – each with very specific requirements:

Home buyer Education and Credit Assessment

• Complete eight hours of counseling from a HUD-certified housing counselor
• Receive a Certificate of Completion from the HUD-certified counselor
• Qualify for a 30 year, fixed rate, amortizing loan (not subprime)

Eligibility Verification

• Determine income eligibility and invest $1,000 from own funds
• Find eligible bank.-owned foreclosed property
• Verify purchase price of at least 15 percent below appraised value

Closing Requirements

• Sign purchase contract with city required contingencies (see above)
• Pass Housing Quality Standards (HQS) inspection before close of escrow
• Completed HUD environmental impact assessment (provided by the city)
• Lead Disclosure Form signed by seller if property pre-Jan. 1, 1978
• Obtain three-year Home Warranty contract, not to exceed $1,500
• Execute city Homeownership Assistance loan documents/agreements

Questions and answers from the NSP Homeownership Assistance Information Session

• Is the $15,000 loan subject to interest?
  • No. It has to be paid back when the home is sold or the property is refinanced OR if you own the home more than 45 years. If you do own the home 45 years, you can ask the City of Phoenix for another 45 year extension on the $15,000 loan.
• Can the money be used for repairs?
  • No. For closing costs and down payment only.
• Can the 203k be used with this program?
  • No, not in this Phase of the program.
• The appraisal has to be done to determine the value of the home- who pays for this?
  • Typically the home buyer will pay for this unless it is negotiated in the contract.
• Do we have to follow your guidelines or the Lender’s guidelines for this program?
  • You have to follow both. You have to fall into the income limitations set for this program, the DTI 31 %/41 %, counseling/credit requirements AND the property has to meet the requirements of the HQS. Any additional lending requirements must be met for the loan.
  • NO non-occupying co-signers allowed.
• Is there a cost for the counseling?
  • Each counseling agency has their policy on the charge for the counseling session. Please contact the HUD-approved counselors for costs.
• How long will it take to close on a home once I have completed the classes?
  • Once you find a home, it will take a minimum of 45 days from a fully executed contract until closing. Once the assistance documents are signed, it takes a minimum of 10-days to have the funds wired to the escrow company.
• Who pays for the inspection?
  • The buyer pays for the inspection and any re-inspection that is needed. And the inspector must use the HSQ inspection sheet in order to buyer’s to use this program.
• What if the seller won’t do the repairs? Can I do them after I move in?
  • If the seller doesn’t do the repairs, the house doesn’t qualify under the currently guidelines and the property isn’t eligible for the program. No, the repairs have to be done by the seller.
• What if the seller won’t lower the sales price of the home to 15% below the appraised value?
  • The house doesn’t qualify for this program.
• Is the program based on “need” or can anyone use it for a foreclosed home in the City of Phoenix?
  • The program is not “need” based at this time. You can use FHA/VA loans for this program. This is not for cash buyers at this time.
• Do I need a 3-year home warranty? Who pays for this?
  • A 3-year home warranty is required for use of this program. The buyer or seller can pay for this. Wasn’t made clear at the meeting if this can be covered by the $15,000 loan.
• Can I income-qualify alone for my family or does everyone that receives income have to qualify?
  • Everyone that will be living in the home as a principal residence will need to be included under the income requirements. Any SSI, worker’s camp, Pension, etc … will need to be disclosed.
• Can I own other real estate and use this program?
  • No, you cannot own any other real estate.

The City of Phoenix has just announced that they will give you $15000 to buy a foreclosure.  This is even more reason to get off your seat and buy today!  You can use the $15000 however you want.  It can be used towards your downpayment, closing costs, or whatever you would like.  The best part is that you can combine it with the $8000 stimulus bill we just enacted, and end up getting $23,000 just for buying a foreclosure property in Phoenix.  Details are still developing, and I will be happy to answer any of your questions.