National Mortgage News
Nehemiah Initiative
Funding AH Loans
11 August 2003
National Mortgage News
SACRAMENTO, CA -- Nehemiah Community Reinvestment
Fund here has started the "Moving People from Homelessness
to Homeownership" national initiative, which will fund short-term
low interest affordable housing loans of anywhere from $10,000
to $750,000.
"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 build their communities from inside out," explained
NCRF director Peggy Jones. "Flexible, financially prudent
use of debt, when accompanied by one-on-one technical assistance,
is a powerful tool for community revitalization."
NCRF (a nonprofit community development financial
institution designed to help revitalize underserved neighborhoods)
plans to help originate about $13 million in community development
loans within the next three years investing in projects worth
over $40 million.
To start, the Nehemiah Corp. of California said
it will capitalize the fund for NCRF, with an initial equity
contribution of $5.5 million and going forward Nehemiah Corp.
president Scott Syphax told NMN the company aims to raise over
$20 million in funds within the next two years.
To be able to help the underserved and low-income
families, Mr. Syphax said builders and lenders involved in minority
housing need to understand their challenges, which "the
government, the lenders and the nonprofits have to collectively
link arms and solve."
The "Moving People from Homelessness to Homeownership" fund
will be loaned to community development and faith-based organizations
involved in affordable housing, workforce and special housing
needs development in low-income and underserved communities nationwide.
It will cover all the expenses needed for these project options
starting with feasibility studies and including land purchase,
construction and permanent financing, albeit short term.
According to Nehemiah, the term of these loans
cannot exceed five years "in order to maintain a constantly
recycling pool of funds," and to allow Nehemiah to finance
a larger number of community revitalization projects.
Eligible projects vary from rental and ownership
housing, to senior residences, single-room units, housing for
people with special needs or who are moving out of homelessness.
Financing will be provided for the so-called facility
loans to churches, childcare and-or health care centers, as well
as other employment training or substance abuse community service
providers.
Initial target markets include the Central Valley
in California, Reno and Las Vegas in Nevada, Phoenix and Tucson
in Arizona, Kansas City, Topeka and Wichita in Kansas, Kansas
City and St. Louis in Missouri, Columbus and Cincinnati in Ohio,
and Indianapolis.
"The initiative will allow Nehemiah to reach
into more communities in new ways and make a greater impact than
ever before," stated Mr. Syphax in a company release. "The
NCRF was established to support our organization's overall strategy
of encouraging community revitalization."
NCRF was founded in 1999 by Nehemiah, one of the
country's largest downpayment assistance providers -which up
to date has provided over $500 million in downpayment gifts totaling
$17 billion in real estate transactions helping over 150,000
families achieve homeownership.
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