Habitat for Humanity and NeighborWorks America Partner to Revitalize Communities

Habitat for Humanity International and NeighborWorks America announce a new partnership that will help revitalize communities and advance the cause of healthy, sustainable and affordable housing.

As part of the partnership, Habitat for Humanity International and Habitat affiliates will have increased access to NeighborWorks America’s training courses and materials. NeighborWorks’ training will strengthen Habitat’s ability to expand the range of housing and revitalization services offered to low-income households and communities.

Habitat for Humanity International and NeighborWorks America also will work together to access funds from the USDA Rural Development 502 Direct Loan Program. The loan program enables eligible low- and moderate-income rural residents to acquire modestly priced housing, and can be used toward the purchase and repair of existing houses.

“We are delighted to join with NeighborWorks America to create community development opportunities across the U.S.,” said Jonathan Reckford, CEO of Habitat for Humanity International. “Together we can help specific neighborhoods address their challenges, and we can help residents revitalize neglected communities that can once again become thriving and inviting places in which to live.”

“The national partnership between NeighborWorks America and Habitat for Humanity will advance both organizations’ efforts to create affordable housing and strengthen communities across the country,” said Ken Wade, CEO of NeighborWorks America. “We look forward to working more closely with Habitat for Humanity to create communities that are safe and healthy places all are proud to call home.”

In addition, Habitat for Humanity International will utilize NeighborWorks America’s Success Measures evaluation system to assess the outcomes of its neighborhood revitalization activities. Success Measures helps community-based organizations evaluate the impact of their work and use data for program design, improved management, planning and advocacy.

“It is crucial that we are able to assess the impact that Habitat for Humanity is making in communities where we are seeking to build networks to address specific neighborhood concerns,” said Reckford. “The Success Measures evaluation system will be a tremendous help in tracking the long-term benefits that result from our neighborhood revitalization efforts.”

HUD's 'First Look' Program Announced at NeighborWorks America

This morning, NeighborWorks America hosted a press conference at which HUD Secretary, Shaun Donovan, announced an historic new partnership between the Department of Housing and Urban Development, financial institutions and members of the National Community Stabilization Trust — the National First Look Program.

National First Look brings together government, leading financial institutions and nonprofit members of the National Community Stabilization Trust (NST) to tackle the foreclosure crisis. The new program is designed to enhance the ability of nonprofit organizations to acquire foreclosed properties from private lenders who participate in the program, using Neighborhood Stabilization Program funds administered by HUD.

NeighborWorks is a founding member of the Stabilization Trust, and participation in this innovative program is an important part of our broader Sustainable Communities Initiative.

For more information on the program and partners, View HUD's press release and this Associated Press story.

NeighborWorks America Continues Commitment to Gulf Coast Region

On the fifth anniversary of Hurricane Katrina, NeighborWorks America underscored its commitment to the Gulf Coast region, announcing that it will invest $3 million in the region by the end of 2010. Since 2006, NeighborWorks America has invested $15 million in resources in the Gulf to support an array of rebuilding efforts.

Here's some of the major areas where NeighborWorks is having impact:

• The construction or rehabilitation of 3,718 for-sale and multifamily affordable housing units, 250 of which incorporate green building techniques
  
• Financial and homeownership education for 26,030 Gulf Coast residents
  
• Support, technical assistance, and training for local nonprofit affordable housing and community development organizations throughout the region.
  
  “NeighborWorks remains committed to rebuilding the communities of the Gulf Coast, and will continue to work effectively with our local and regional partners to rehabilitate and develop affordable housing, deliver financial education and homeownership counseling, and provide technical assistance and support for the nonprofit community. With the help of our partners, we will continue to empower affected families and help to build a better future for generations to come,” said Ken Wade, CEO of NeighborWorks America.
  
  This year alone, NeighborWorks America is investing an additional $3 million in the region, including $225,000 in grants to four Gulf area organizations who are providing assistance to constituents impacted by the BP oil spill.
  
  James Ross, Gulf Rebuilding manager at NeighborWorks, works closely with Gulf partners has seen first-hand the impact of this latest crisis. “Folks here are blindsided by this disaster – they don’t know how to support their families or pay their mortgages now that their businesses have been shuttered and their way of life has been threatened. Funding from NeighborWorks gives partners much-needed flexibility to address issues resulting from the oil spill.” View news release.

Don’t Let Rising Credit Card Rates Lead to a Financial Fall

By Milt Sharp, Jr.
National Homeownership Programs
NeighborWorks America

Interest rates on mortgages are at record low levels, but the interest rate on another staple of consumer credit – credit cards – have not come down alongside. That’s the news from The Wall Street Journal recently, which reported that credit card interest rates are at the highest relative level in more than 20 years.

The average consumer who carries a balance on a credit card is paying nearly 15 percent interest, more than three times the cost today of a 30-year fixed rate mortgage loan.

But while credit cards are necessary for many consumer transactions today – reserving a hotel, rental car or for shopping online -- the wise use of credit cards will save money.

Here’s some advice that NeighborWorks organizations that offer financial literacy and capability training are telling their customers:

1. One of the best ways to avoid running up expensive credit card balances is start and maintain a savings plan. Unexpected costs that might force a consumer to reach for a credit card can be mitigated if savings have been built for emergencies.
2. If a credit card has to be used for an unforeseen expense, consumers should immediately begin adjusting their other expenses to pay off the credit debt as quickly as possible.
3. Use the right credit card. Not all credit cards are created equal. Some have high annual fees just for having the card, while others charge much higher interest rates than the recent national average of 14.7 percent. Seek out the advice of an unbiased financial counselor or advisor when choosing a credit card. Select NeighborWorks organizations and other nonprofits can help.
4. Don’t carry the credit card in your wallet or purse. Remember, the best use of credit is for emergencies, not every day purchases. Leave the plastic at home and you’ll be less inclined to use it – and to stay within a spending plan and budget.
5. Plan large purchases without relying on credit. According to an article in the Independent Retailer, nearly three-quarters of consumers have rediscovered the benefits of buying an item on layaway.

Buying items that exceed your weekly or monthly budget on layaway, or paying a little bit of the purchase cost over time, cuts down on the use of credit cards and their high interest cost. Inquire at your favorite retailer to see if they have a layaway option.

The bottom line is that even though credit card interest rates are climbing, consumers don’t have to risk a financial fall by using them.

On NPR, NeighborWorks' Marietta Rodriguez Discusses Unemployment's Impact on Foreclosures

Realty Trac reported today that foreclosure filings in July were up nearly 4 percent from the previous month. But when compared to this time last year, foreclosure activity has actually dipped 10 percent.

While the drop in default notices, scheduled auctions and bank repossessions over the last year is a good sign, Marietta Rodriguez, NeighborWorks America’s director of homeownership and lending, cautions against "breathing a sigh of relief."

In an interview with NPR this morning, Rodriguez said that lack of employment is a major problem driving many homeowners over the edge to foreclosure.

“On the ground, our counselors are telling us they're seeing more and more consumers, more and more borrowers seeking help — that their numbers are not decreasing," Rodriguez said in the NPR interview.

Indeed today, NeighborWorks America announced that more than one million homeowners facing foreclosure have been counseled through the Congressionally-funded National Foreclosure Mitigation Counseling (NMFC) program. And 58 percent of those being counseled report that job loss is the reason they are facing foreclosure.

NFMC has found that foreclosure counseling works. Homeowners served through the program are finding a solution to foreclosure and receiving indispensable information and guidance. A recent independent NFMC report found that the program’s clients were 60 percent more likely to avoid losing their homes to foreclosure than those who went without counseling. In addition, NFMC clients were more likely to receive a loan modification, and on average, saved $454 more on their monthly mortgage payments per month, than homeowners who received modifications but did not work with a counselor.