Katrina Aftermath

Downpayment Assistance Provider Pledges Hurricane Relief Funds

National Mortgage News
October 24, 2005
by Amilda Dymi

Sacramento, CA – Nehemiah Corp. of America here, a privately funded provider of downpayment assistance gifts, has pledged $1.6 million to aid victims of the recent hurricanes through a program "consistent with Nehemiah's mission" and "also driven by a corporate value system that calls for an immediate and long-term response," the nonprofit said.

Nehemiah said it plans to combine its DPA program, community reinvestment fund, community foundation and urban ministry program along with support from other partners to meet the needs of middle- to lower-income market borrowers often overlooked by the large banks. According to a Nehemiah spokesman, customer benefits include interest rates between 6% and 9% and loans that average $300,000. Also, most of the capital will be available to developers with interest rates as low as 3% to 4%.

"Given the magnitude of the devastation of Hurricanes Katrina and Rita, Nehemiah has create a comprehensive relief program that reaches across all aspects of our charitable and community investment work," said Scott Syphax, president and CEO of Nehemiah. "This relief program is designed with an understanding that rebuilding these communites requires partners who will be in it for the long haul. Nehemiah is that kind of partner."

In addition, through the Nehemiah Community Foundation, it made a $100,000 donation to the National Urban League of New York to support its "Katrina Fund" designed to provide permanent housing and employment for hurricane victims.

Marc Morial, president and CEO of the National Urban League said, "I have known Nehemiah since my days as the may of New Orleans and president of the U.S. Conference of Mayors, and I am pleased to say that they have remained true to their goal of helping low-income and hard-working families across America purchase homes and achieve financial security for the long term."

Nehemiah will waive its administrative processing fee for up to 1,000 homes in the hurricane-affected areas at up to a total of $500,000. Working with builder, lender and Realtor partners, Nehemiah said it expects to obtain over $4 million in downpayment gift funds.

The Nehemiah Community Reinvestment Fund will provide $1 million in community development lending capital that includes financing for homes, apartments, day-care centers and other facilities. Mr. Syphax said, "In the coming years, Nehemiah will be there to continue the work of rebuilding entire communities."

Besides providing downpayment assistance, one of the offerings Nehemiah is known for is its charitable work of both the Nehemiah Foundation and the Nehemiah Community Foundation and the Nehemiah Community Reinvestment Fund throughout the United States. Mr. Syphax told NMN.

"The million-dollar capital that we're making available for the region, as well as our contribution to the Urban League, are just the start of a comprehensive effort. In addition to that we are going to waive a fee for one thousand families that will utilize Nehemiah assistance within the affected regions. We are trying to do all we can to help facilitate people moving back into homeownership as quickly as possible."

Depending on the success of the program, Nehemiah said, will largely depend on combining efforts with old and new partners and various initiatives like the recently announced partnership with the National Urban League, one of the country's oldest organizations devoted to the economic empowerment of African-Americans. The National Urban League operates in 35 states and the District of Columbia reaching out to over two million people.

"Going forward, the Nehmiah Foundation will be looking for donations to support basic necessity of life types of needs that they might have as they are trying to move forward and rebuild their lives," Mr. Syphax said.

"What we're doing different with Katrina and Rita, we are taking our funds to these area," said Nehemiah's Peggy Jones. "In the hurricane areas, a typical size loan is $300,000, which usually is paired with other money."

Ms. Jones is optimistic that going forward more free funds and additional business partners will joing in with Nehemiah's efforts to rebuild the devastated areas.

"We do not compete with banks, we partner with banks when possible and try to encourage them to make investments in areas where otherwise they might not invest," she said.

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