Nehemiah Community Reinvestment Fund Announces National Initiative: Moving People from Homelessness to Homeownership

Nehemiah Community Reinvestment Fund to Make Loans Nationally

Sacramento, CA - July 28, 2003 - Nehemiah Community Reinvestment Fund (NCRF), a nonprofit community development lender based in Sacramento, California, today announced a national initiative “Moving People from Homelessness to Homeownership.” NCRF will begin making short-term, low interest loans to community- and faith-based 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. The Nehemiah Corporation of California will capitalize the fund with an initial equity contribution of approximately $5.5 million.

Founded in 1999 by Nehemiah, the nation’s most trusted provider of down payment gift assistance, NCRF has been making self-funded loans and equity investments in community development projects in California since 2000. “The Nehemiah Community Reinvestment Fund was established to support our organization's overall strategy of encouraging community revitalization through comprehensive, regionally-focused affordable housing and community redevelopment programs. This initiative will allow Nehemiah to reach into more communities in new ways and make a greater impact than ever before,” said Scott Syphax, president and chief executive officer of the Nehemiah Corporation.

The loans will range in size from $10,000 to $750,000 and will have terms extending for up to 5 years. NCRF will exclusively offer short-term loans in order to maintain a constantly recycling pool of funds, thus allowing the fund to finance many more projects and achieve greater community impact within these communities. The reinvestment fund is a national project, but initial target markets include:

- California - Central Valley
- Nevada - Reno and Las Vegas
- Arizona - Phoenix and Tucson
- Kansas - Kansas City, Topeka and Wichita
- Missouri - Kansas City and St. Louis
- Indiana - Indianapolis
- Ohio - Columbus and Cincinnati

NCRF’s housing loans will 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 will be 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 will 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. NCRF’s economic development loans will finance projects that create jobs and contribute to the economic revitalization of neighborhoods located in low-income census tracts including mixed-use developments, offices, retail, manufacturing facilities and small business incubators. All borrowers will receive technical assistance tailored to meet the needs of their organization or project.

“Nehemiah is committed to serving the continuum of housing needs for Americans. By working in partnership with local, regional and national institutional investors, NCRF will act as a financial conduit of capital resources to local nonprofit organizations working to rebuild their communities from the inside out”, said Peggy Jones, NCRF’s director. “Flexible, financially prudent use of debt, when accompanied by one-on-one technical assistance, is a powerful tool for community revitalization.” Over the next three years, NCRF expects to make loans totaling nearly $13 million for community development projects worth in excess of $40 million.

About Nehemiah Corporation of California
Founded in 1994, Nehemiah Corporation of California is a Sacramento-based nonprofit organization committed to empowering 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 development initiatives into 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 $500 million in down payment assistance gifts, resulting in $17 billion in real estate transactions and has helped over 150,000 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 down payment gift assistance, Nehemiah has created other programs that work to enrich communities including: Nehemiah Community Reinvestment Fund, Nehemiah Community Foundation and Nehemiah Urban Ministries.

About Nehemiah Community Reinvestment Fund
Nehemiah Community Reinvestment Fund (NCRF) 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.

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