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Neighborhood
Reinvestment Executive Director Testifies on
Importance of Housing Counseling
Kenneth D. Wade,
executive director of Neighborhood Reinvestment Corporation,
testified before Congress on March 18 on behalf of the NeighborWorks
system about the importance of housing counseling in low-
and moderate-income communities. Speaking before the House
Committee on Financial Services, the Subcommittee on Housing
and Community Opportunity, Wade focused on the network's experiences
in housing counseling, standards for homebuyer education,
the Full-Cycle Lending model, and the importance of objective,
community-based counseling services. During the hearing, NeighborWorks
members NHS of New York City and the Columbus Housing Partnership
were praised for their exemplary housing counseling. One organization
mentioned receiving housing counseling certification through
the NeighborWorks Training Institute.
View
hearing summary
View
Kenneth D. Wade testimony [PDF]
Fannie
Mae, NAHB Launch Partnership to Expand Workforce Housing;
Company Pledges to Increase Affordable Housing and Housing
for the Homeless
Fannie Mae joined its partners, including
the National Association of Home Builders (NAHB), to launch
a major workforce housing initiative to revitalize 1,000 communities
across America by expanding the stock of affordable housing
for working families. Fannie Mae's expanded American Dream
Commitment also includes a major initiative to help increase
the availability of permanent supportive housing for the homeless.
In addition to the NAHB, Fannie Mae will work with mortgage
lenders, mortgage insurers, nonprofit organizations, housing
finance agencies, local government, and many other partners
to expand the supply of affordable housing across America.
View
press release.
Neighborhood
Reinvestment Commends New Hampshire Credit Unions
At a recent conference of the Credit Union
National Association (CUNA), Kenneth D. Wade, Neighborhood
Reinvestment Corporation executive director, commended New
Hampshire credit unions and the New Hampshire Credit Union
League for their partnership with NeighborWorks organizations.
This partnership produced a $35 million pledge from the credit
unions to establish a fund that provides affordable housing,
counseling and loan programs in the state. View
article.
NHS
of Jamaica to Boost Homeownership in Minority and Low-Income
Communities With New York Grant
Neighborhood Housing Services of Jamaica,
a NeighborWorks organization based in New York City, received
$450,000 from the state's Housing Trust Fund Corp. to administer
a program that offers grants up to $30,000 to eligible first-time
homebuyers. Cathy Mickens, the agency's director, told the
New York Daily News that the $450,000 will be leveraged
with $2.6 million in private funds from the New York Mortgage
Coalition to increase homeownership in minority and low-income
communities. "We are looking at low-income people and
middle-income people who are trying to buy houses now,"
said Mickens. "The costs of houses are so high now. We
are using all of our resources available," she said.
Wells
Fargo Awards Manchester NHS
The Wells Fargo Housing Foundation made
a $15,000 grant to Manchester Neighborhood Housing Services
in support of home-ownership education for low-income populations
in the Manchester area. The grant will help the New Hampshire
NeighborWorks organization continue its home-ownership education
services to low- and moderate-income families.
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| Community
Strategies represents the shared experience of the NeighborWorks
network and Neighborhood Reinvestment Corporation in various topics
of community development and affordable housing. |
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| The
NeighborWorks Training
Institute is dedicated to providing the highest quality training
for community development practitioners. Learn about the latest
classes and symposia on leading-edge topics. |
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| Neighborhood
Reinvestment, working closely with members of the NeighborWorks
network and partners, produces a wide-variety of publications. Most
are free and others cost a nominal fee to order. For a complete
listing and order forms, go to NeighborWorks Publications. |
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| Find lists
and charts on Neighborhood Reinvestment and the NeighborWorks
network organizations. |
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Boise NHS Awarded by
National Law Center on Homelessness and Poverty for 'Homeward Bound'
Boise Neighborhood Housing Services´ Homeward Bound Program received
the "Solutions Through Alternative Remedies" (STAR) Award from the
National Law Center on Homelessness and Poverty (NLCHP). The nationally
recognized Homeward Bound program includes 31 units for homeless
families scattered throughout various neighborhoods of Boise. By
having the homes scattered throughout residential neighborhoods,
residents of the program build roots in the community, as well as
maintain stability for children in school. Families pay 30 percent
of their income for rent. Residents participate in counseling and
workshops, as well as training aimed at fostering self-sufficiency
and independent living. To learn more about innovative solutions
to homelessness, visit www.nlchp.org.
Columbus
Housing Initiative, AFLAC Helps Give Employees a Start on Homeownership
More than 50 AFLAC employees are going through a Columbus Housing
Initiative homeownership program, reports the Columbus Ledger-Inquirer.
The Georgia NeighborWorks organization is handling all the homebuyer
training. When the employees complete the classes and find a home,
AFLAC will put money toward the down payment of their house. Those
who choose to live in CHI's neighborhood of East Wynnton Park will
receive $5,000, and those who choose to live elsewhere will receive
$1,000. Eric Holt, 26, told the newspaper that the homeownership
program was a bonus, but did admit that it was a little shocking.
"When I first heard about it, I was like, 'whoa, this company
is going to give this to you?' Holt said. "It's exciting, actually."
Indian Groups
Announce Partnership/Program to Boost Homeownership in Indian Country
The National American Indian Housing Council (NAIHC) announced its
partnership with the National Congress of American Indians (NCAI)
and Neighborhood Reinvestment for the completion of homebuyer education
tools to be used by tribes and tribal housing entities. The partnership
and program, called "Pathways to Homeownership," trains trainers
how to teach others how to implement homebuyer education programs
on a local level. NAIHC Chairman Russell Sossamon said, "Much has
been documented to show the difference homebuyer education makes
in creating knowledgeable homebuyers. That is why this program means
so much to Indian Country."
NHS of Hamilton (Ohio) to Build 125 homes
Neighborhood Housing Services of Hamilton, an
Ohio NeighborWorks organization, is building up to 125 new homes
-- 40 of them for first-time homebuyers on moderate incomes -- on
the South Farm subdivision. "The three- and four-bedroom homes
start at $130,000 on the 63-acre farm," Ron Woolwine, executive
director, told the Hamilton newspaper.
NCC
Grants Ohio NeighborWorks Organization for Multifamily Development
Neighborhood Development Services of Ohio, a NeighborWorks
organization in Ravenna, Ohio, recently began work on 13 units of
affordable multifamily housing with a $340,000 interim development
loan from Neighborhood Capital Corporation.
Pocatello
Mayor, State Journal Applaud Impact of Pocatello NHS
In an editorial, The Idaho State Journal applauded Pocatello
NHS for building more than 30 homes, refurbishing more than 250,
and helping more than 500 families purchase a home. "They've
rehabilitated a lot of moderate-priced and low-priced housing stock
in Pocatello," said Mayor Roger Chase. "That's really
critical, today more than ever. It's as important an organization
as there is in Pocatello." The key to success is the
involvement of the neighborhood associations and the residents within
those neighborhood associations," said Dick Emerson, treasurer
of the PNHS's board of directors and president of U.S. Bank. "The
organization is growing stronger all the time. All you have to do
is drive down any of the streets in the targeted neighborhood and
see the effect. There are hundreds of homes occupied by homeowners
now. The neighborhoods are being improved little bits at a time."
Less Than
20 Percent of San Francisco Bay Area Residents Can Afford Housing
Only 19 percent of the region's households can
afford a median-priced home in the Bay Area, according to a recent
Business Journal article. Based on the $573,700 median
price, a buyer would need an annual income of about $125,000 plus
a 5 percent down payment. "Market-rate housing is out of reach
for low-wage earners," said Mary Lee Widener, president and
CEO of Neighborhood Housing Services of America in Oakland. Most
low-wage earners don't have many housing options, Widener said.
They usually end up in substandard housing, piled up three to four
generations in one house or apartment, or traveling long distances
to work.
Anti-Predatory Lending Campaign Kicks Off in St.
Louis
Congressman William Lacy
Clay (D-MO), Freddie Mac and St. Louis area organizations rolled
out a new campaign this month to help residents in the St. Louis
metro area avoid predatory lending practices.
The campaign, called "Don't Borrow Trouble Metro St. Louis,"
is designed to alert at least 50,000 families in the area, especially
minorities and low- and moderate-income residents, about predatory
lending practices, such as high interest rates and excessive fees.
Beyond Housing/NHS of St. Louis, a NeighborWorks organization, serves
as the lead organization for the effort in the area. The organization
plans to use advertising as well as consumer education programs
to warn residents about predatory lending through programs at churches,
neighborhood groups and other civic organizations.
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HUD
Offers New ARM Products
Potential homebuyers will be able to choose
mortgages with periods of three, five, seven or ten years,
depending on their needs, during which time the interest rate
would be fixed. The hybrid ARMs program was proposed by President
Bush in an effort to increase opportunities for homeownership,
particularly for minority families. View
HUD press release.
New
Rules on 203(K) Programs with Nonprofit Housing Providers
On February 13,
2004, the Federal Register published a proposed rule applying
to Nonprofit Organization Participation in FHA Single Family
Mortgage Insurance Programs. The impetus for changing the
rule is the nonprofit organizations’ significantly higher
default rates, particularly on multi-unit properties. The
following are highlights from this proposed rule.
• Nonprofits must prepay at least 80 percent of total
number of FHA insured mortgages by the end of the second fiscal
year, if seeking FHA-insured financing for 10 more properties
in a given fiscal year.
• Nonprofits will not be allowed to obtain FHA insurance
(203K program) for mortgages secured by single family properties
with more than two living units.
• Nonprofits participating in these FHA programs will
also be required to provide evidence of two-years of tax-exempt
status under the IRS Code of 1986 and two consecutive years
of experience in housing development within the last five
years.
Comments on this proposed rule change are due to HUD by April
13, 2004. For more information,
view
Federal Register (vol.69, no.30).
Regulatory
Agencies Propose Three Changes to CRA Rules
On February 6th, the federal bank and thrift regulatory agencies
issued a proposed change in Community Reinvestment Act (CRA)
rules. The three changes listed below are intended to adjust
CRA to keep pace with the evolving financial services industry.
* Amend the definition of “small institution”
to mean an institution with total assets of less than $500
million, not including any holding company assets. The current
definition covers institutions with total assets of less than
$250 million. This would shift more banks and thrifts from
being regulated as “large institutions” to “small
institutions."
* Amend regulations to explicitly state that evidence of discriminatory,
illegal or abusive practices will hurt the institution’s
CRA score.
* Enhance the loan data disclosed both publicly and in CRA
disclosure statements.
Download
Proposed CRA Rules. [PDF]
If you have specific concerns about this proposed amendment,
please contact Lynsey Wood Jeffries in Neighborhood Reinvestment’s
Office of Public Policy and Legislative Affairs: lwood@nw.org
or 202-220-2429.
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Excellence
in Affordable Housing for 2004
You can win unrestricted funding and public
recognition for your property and asset management work. The
Enterprise Foundation is offering the MetLife Foundation Awards
for Excellence in Affordable Housing for 2004. First place
winners receive $25,000; second place winners, $15,000; and
third place, $10,000. The awards are open to 501(c)(3) community-based
or regional nonprofit organizations and Tribes/Tribally Designated
Housing Entities. The deadline for applications is April 30,
2004, and winners will be announced at The Enterprise Foundation’s
Network Conference in New York, October 13-15. If you have
questions, please contact Sabina Cardenas at 410-772-2738.
Click
here, for more information and the application, which
must be submitted online.
CDFI
Funds Available
Community Development Financial Institutions
or potential CDFIs can apply for CDFI financial assistance
awards by April 28, and/or for technical assistance grants
by May 31. For more information, visit http://www.cdfifund.gov.
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NeighborWorks
Training Institute, May 3-7, in Minneapolis, Minn.
Registration
Information
Symposium - Changing Minds, Building
Communities: Advancing Affordable Housing through Communications
Campaigns, May 5, in Minneapolis, Minn.
Registration
Information
Online
Testing Available for Select Professional Certificates Program
of Study Courses
NeighborWorks Training Institute is now offering online testing
that allows Program of Study (POS) participants to take required
tests in select POS courses over the Internet rather than
on paper. This exciting new program allows POS participants
to see their test scores immediately instead of waiting for
scores to be mailed, as well as review questions that they
did not answer correctly. Based on positive feedback, the
NeighborWorks Training Institute plans to roll out online
testing to additional Program of Study courses at future Institutes.
A special prize drawing will be held for those who take a
POS test online for courses offered at the Training Institute
in Minneapolis!
View
more information about online testing.
View
information about the Professional Certificates Programs of
Study
Advanced Practitioner Programs
The Advanced Practitioner Program (APP) is Neighborhood Reinvestment’s
expanding curriculum for seasoned community development practitioners
and their board members. APP courses are designed to meet
the needs of busy and successful professionals; all learning
is applied and performance-based. The APP has several offerings
coming up:
* Exit Strategies for LIHTC Projects: May 6-7 at Minneapolis
NeighborWorks Training Institute.
Registration
information.
* Advanced Issues in Multifamily Bond Transactions: June 2-3,
Chicago
Applications due May 10.
* Organizational Leadership Succession: June 17-20, University
of Maryland, College Park, MD
Applications due
May 17.
View
information about upcoming APP classes.
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Neighborhood Reinvestment
Reviews Neighborhood Revitalization Initiatives
New research commissioned by Neighborhood
Reinvestment presents introductory information on a wide range
of neighborhood revitalization initiatives. The initiatives
include HOPE VI, a $5 billion federal initiative aimed at
redeveloping distressed public housing developments; CCRP,
a $10 million effort focused on community development corporation
(CDC) capacity-building in four neighborhoods of the South
Bronx; and Smart Growth America, a coalition of advocacy organizations
promoting smart growth principles. The report does not attempt
to extract overall lessons learned but instead gives practitioners
an overview of the projects. By publishing this paper, Neighborhood
Reinvestment hopes to expose practitioners to the variety
of neighborhood revitalization programs that have been conducted
to help inform their judgments on what might work best for
their program and community.
View
paper.
Building
Assets, Building Credit
The Building Assets, Building Credit symposium
was sponsored by the Ford Foundation, Freddie Mac and the
Neighborhood Reinvestment Corporation and held at Harvard
in November 2003. The symposium focused on financial services
as a gateway to homeownership with particular attention on
the role of savings, transaction accounts, short-term credit
providers, and credit scores in facilitating or impeding asset
accumulation. Twenty-two papers were presented for discussion
by academics, advocates, industry representatives and government
regulators. View
symposium papers.
National
Vacant Properties Campaign
During the past several years, many cities
and counties have launched innovative efforts to reclaim their
abandoned and vacant properties. Read case studies of successful
programs nationwide at www.vacantproperties.org.
Rural
Seniors and Their Homes
Rural Seniors and Their Homes, a new report by the
Housing Assistance Council (HAC), looks at the continuing
growth of the nation’s elderly population and the special
challenges faced by rural seniors. The report finds that despite
housing satisfaction rates of 80 percent and high homeownership
rates, rural seniors still face significant affordability
problems. View
report.
Rise
of New American Immigrant Gateways
Unparalleled immigration in the 1980s and 1990s transformed
many older immigrant gateways and created new ones. In a new
paper from The Brookings Institution, Audrey Singer analyzes
the new geography of American immigration. View
study.
Building
Families’ Assets Through the Earned Income Tax Credit
Just in time for Tax Day, a KnowledgePlex (www.knowledgeplex.org)
chat will focus on the Earned Income Tax Credit and how it
can help low-income families accrue wealth. Guests will be
Willie Logan, president and CEO of the Opa-locka Community
Development Corp. in Florida, and Anita Carwile, senior program
analyst with the IRS’ Volunteers and Community Partnerships
group. They will respond to questions on Wednesday, April
14, at 3 p.m. EDT.
Issues
Update on Minority Homeownership Symposium
Neighborhood Reinvestment is publishing an Issues Update that
will cover key discussions from last August's symposium on
"Working Together to Change the Face of Home Ownership:
Effective Tools and Strategies for Reaching Minority Markets,"
as well as other resources on the topic of increasing minority
homeownership. It will be available in the coming weeks and
will be posted to www.nw.org/minorityhomes.
Harvard
Study Finds Unequal Access to Home Mortgages Persists
Lacking the skills and information needed to shop for
the best mortgage products available in the marketplace, many
low-income and low-wealth homebuyers and mortgage borrowers
are saddled with high-cost mortgage debt, according to a new
study from The Joint Center for Housing Studies at Harvard.
The study presents a comprehensive assessment of the challenges
faced by community based organizations (CBOs) -- and their
public, private, and philanthropic partners -- in expanding
access to capital in low-income and low-wealth communities.
The 18-month study entitled, "Credit, Capital, and Communities:
The Implications of the Changing Mortgage Banking Industry
for Community Based Organizations," was funded by the Ford
Foundation. View
study. [PDF]
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