Nehemiah Community Reinvestment Fund Announces First Short-Term, Low-Interest Loan Financing

Oakland-Based Nonprofit Developer Receives $270,000 Loan to Finance Acquisition and Predevelopment Costs for New Housing Units

Sacramento, CA - March 22, 2004-The Nehemiah Corporation of America (www.nehemiahcorp.org ) announced today that its Nehemiah Community Reinvestment Fund (NCRF), a nonprofit community development lender based in Sacramento, California, completed the first of its short-term, low interest loans as part of its national initiative, "Moving People from Homelessness to Homeownership". Oakland Community Housing, Inc., an established nonprofit developer of affordable housing in Alameda County, California, is NCRF's first beneficiary, receiving a loan of $270,000 to finance the acquisition and predevelopment costs for four units of in-fill, ownership housing. Nehemiah has capitalized NCRF for $6.3 million.

"Nehemiah Community Reinvestment Fund was created to address the growing affordability crisis in our communities, by providing a tool for helping local programs with short-term loans. With too few people able to own a house in their neighborhoods, loans for programs like Oakland Community Housing, Inc. embody the Nehemiah Community Reinvestment Fund's mission of providing essential funding to worthy and vital community organizations and their projects," said Scott Syphax, president and chief executive officer of the Nehemiah Corporation of America. "The Nehemiah Community Reinvestment Fund promotes community revitalization through comprehensive, regionally-focused affordable housing and community redevelopment programs. We are proud to be able to help organizations like Oakland Community Housing."

The Nehemiah Corporation of America, the nation's most trusted provider of down payment gift assistance, founded NCRF in 1999 to make loans and equity investments in community development projects in California. "Moving People from Homelessness to Homeownership", a program targeted at community- and faith-based nonprofit organizations for the development of affordable, workforce and special needs housing as well as community facilities and economic development in low-income and underserved communities nationwide, was implemented in 2003. The $270,000 12-month loan will help to finance the acquisition and predevelopment costs for four units of in-fill, ownership housing for Oakland Community Housing, Inc. The project is called E Street Homes. The homes will be manufactured housing, produced by Marlette, a division of Shult Homes, and will be approximately 1,300 sq. ft., with three bedrooms and two baths. Two of the homes will be affordable to families at or below 80 percent of area median income and two of the homes will be affordable to families at or below 110 percent of area median income. In 2003, the area median income for Oakland was $76,600. The project is located in a low-income census tract in East Oakland.

NCRF's housing loans finance all phases of affordable and workforce housing development from feasibility studies and land purchase, to construction and short-term permanent financing. A wide variety of projects are eligible including rental housing, senior residences, single room occupancy units, housing for people with special needs and the formerly homeless as well as ownership housing. Community facilities loans support a wide range of faith-based organizations and essential human service agencies, including churches, providers of child care, health care, employment training, substance abuse and AIDS services, senior services and educational facilities. Over the next three years, NCRF expects to make loans totaling nearly $13 million for community development projects worth excess of $40 million.

About Nehemiah Corporation of America

Founded in 1994, Nehemiah Corporation of America, http://www.nehemiahcorp.org, is a Sacramento-based nonprofit organization committed to emporwering lives and enriching communities nationwide. Nehemiah transforms lives by increasing homeownership opportunities for diverse populations, while maintaining its commitment to successful, responsible, homeownership. Nehemiah transforms communities by expanding its faith-based, charitable and community developemnt initiatives to underserved neighborhoods across America. In 1997, Nehemiah launched its flagship program, The Nehemiah Program, to provide down payment assistance to homebuyers. To date, Nehemiah has provided more than $600 million in down payment assistance gifts, resulting in $20 billion in real estate transactions and has helped over 165,000 families and individuals achieve their dream of homeownership. Committed to comprehensive community reinvestment, Nehemiah has fostered partnerships with Habitat for Humanity, HomeAid America and the US Conference of Mayors. In addition to providing downpayment gift assistance, Nehemiah has created other programs that work to enrich communities including: Nehemiah Community Reinvestment Fund, Nehemiah Community Foundation and Nehemiah Urban Ministry Initiative.

About Nehemiah Community Reinvestment Fund

Nehemiah Community Reinvestment Fund (NCRF) (www.ncrfund.org) is a nonprofit community development financial institution dedicated to providing capital and resources to revitalize low income and underserved communities. NCRF accomplishes this by leveraging investments in its revolving loan fund with its own capital to make below-market rate loans to community- and faith-based nonprofit organizations. These loans produce affordable and special needs housing, community facilities such as childcare and senior centers, and nonprofit offices, and economic development projects. which create jobs and help revitalize economically stressed neighborhoods. Additionally, NCRF acts as a bridge to provide investors with a vehicle to drive community revitalization by facilitating the creation of equity funds to make real estate investments in low-income and underserved communities. These double bottom line funds provide capital for community revitalization while at the same time yielding market-rate returns to investors.

About Oakland Community Housing, Inc.

Oakland Community Housing, Inc. (OCHI) is a 30-year old, respected nonprofit developer of affordable housing in Alameda County, California. Founded in 1973, OCHI has developed 1,053 units of housing: 705 multi-family rental, 120 senior rental housing, 158 single-family ownership and 70 ownership town homes or live/work lofts. Most of the housing has been affordable to people with incomes at or below 80% of area median income.

<-- Return to News menu