News Release

September 28, 2010

Contact: Doug Robinson, NeighborWorks America, 202-220-2360, drobinson@nw.org
Erin Angell Collins, 202-220-6317, ecollins@nw.org

NeighborWorks Homeownership Efforts Get a Boost from $15 Million in CDFI Funds

Washington, D.C. – Efforts to increase sustainable homeownership got a boost recently when 25 members of the NeighborWorks network received nearly $15 million as part of grants made by the U.S. Treasury department’s Community Development Financial Institution program.

Combined with grants from NeighborWorks America, local governments, foundations and the private sector, these NeighborWorks organizations and others affiliates in the network plan to continue making sustainable, affordable homeownership available in communities across the U.S.

Roy Nash, president and CEO of NeighborWorks Waco said, “CDFI funds are a major tool in our work to safely increase homeownership in our market. Being able to help homeowners secure a low-cost, fixed-rate mortgage and a home that is right for their needs is part of what these grants do and do very successfully.”

In addition to the twenty five grant recipients in this latest round of financing, there are 47 additional NeighborWorks organizations with certified CDFI operations. NeighborWorks organizations use these recent CDFI grants and prior grants to foster sustainable housing in a variety of ways, including:

• Providing down payment assistance to qualified first-time homebuyers who have successfully completed homeownership education classes
• Underwriting the cost of homeownership education classes
• Providing capital to support the construction and project management of affordable homes for sale.
  
  

“These are some of the toughest times we’ve seen for homeownership,” said Charles H. Rucks, executive director, of the Springfield Neighborhood Housing Services. “Although mortgage interest rates are at all-time lows, the availability of mortgage credit is extremely tight. CDFI funds open opportunities for homebuyers to be able to get a mortgage and buy a home that they are prepared to own for the long-term.”

Nearly all consumers who work with NeighborWorks organizations to become homeowners with the help of CDFI funds also participate in homeownership education classes. Early information from the ongoing foreclosure crisis shows that few homeowners on the verge of foreclosure ever had pre-purchase homeownership education. Moreover, the delinquency rate of consumers who became homeowners through NeighborWorks efforts remains below comparable national figures.

“Homeownership education doesn’t make a person immune to job loss or other serious financial setback, but it does show homeowners how to prepare as best as possible for a bad turn in their circumstance and help mitigate short-term financial crises,” said Marietta Rodriguez, national director for homeownership and lending programs at NeighborWorks America.

Organization	City, State	2010 Award
Kalamazoo NHS	Kalamazoo, MI	100,000
FAHE	Berea, KY	750,000
Frontier Housing	Moorehead, KY	750,000
NE South Dakota Economic Corp	Sisseton, SD	750,000
Community Works North Dakota	Mandon, ND	750,000
NHS of Chicago	Chicago, IL	750,000
Springfield NHS	Springfield, MA	750,000
Champlain Housing Fund	Burlington, VT	74,085
W Elmwood Housing Development	Providence, RI	89,285
Home HeadQuarters Syracuse	Syracuse, NY	750,000
Ithaca NHS	Ithaca, NY	750,000
Utica NHS HOC	Utica, NY	500,000
NW HO Sacramento	Sacramento, CA	750,000
Homesight	Seatle, WA	750,000
Portland Housing Center	Portland, OR	750,000
NHS of Orange County	Anaheim, CA	750,000
Tierra del Sol	Las Cruces, NM	97,898
NHS, Inc/NHS Lending	Boise, ID	750,000
CHE/CRHDC	Westminster, CO	495,230
NHS of Phoenix	Phoenix, AZ	750,000
Homewise	Santa Fe, NM	750,000
NW Waco	Waco, TX	750,000
NW Montana	Great Falls, MT	750,000
NHS Dimmit County TX	Dimmit County, TX	422,000
NW Columbus	Columbus, GA	500,000

In addition to the CDFI recipients noted above, NeighborWorks Home Ownership Centers also provide help with homeownership.

About NeighborWorks America

NeighborWorks America creates opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. Since 1991, we have assisted nearly 1.2 million low- to moderate-income families with their housing needs.  NeighborWorks America supports more than 3,600 organizations and municipalities around the country with resources, tools, technical assistance and training.  Much of our success is achieved through our support of the NeighborWorks network ― more than 230 community development organizations working in more than 4,400 urban, suburban and rural communities in all 50 states, the District of Columbia and Puerto Rico. In the last five years, NeighborWorks organizations have generated more than $15 billion in reinvestment in these communities. NeighborWorks America is the nation’s leading trainer of community development and affordable housing professionals.