The featured projects have yet to appear here, but will soon! While you can't see the peeling paint very clearly, it is a texture from Clever Models. I've purchased several of their textures and I'm a big fan of their work, so be sure to have a look.
I know that Thom Miecznikowski had been exploring the idea of using KNK craft cutters in to cut out building textures and I was very interested in that line of thinking. I'm looking forward to posting my experiments here.