New Appraisers’ Tool Helps Homeowners Get Credit for Green Features



By Michelle A. Winters,
Senior Manager, Green Strategies
NeighborWorks America

Homeowners who have invested in energy saving upgrades can now have greater confidence that their property will be appraised at a fairer market value.

The nation’s largest professional association of real estate appraisers released a form recently that is intended to help appraisers identify and describe a home’s green features, from solar panels to energy-saving appliances. The Appraisal Institute says the Residential Green and Energy Efficient Addendum is the first of its kind. It will help the industry standardize the way residential energy-efficient features are analyzed and reported.

The form was issued as an optional addendum to Fannie Mae Form 1004, the appraisal industry’s most widely used form for mortgage lending purposes. Used by Fannie Mae, Freddie Mac and the Federal Housing Administration, Form 1004 is completed by appraisers to uphold safe and sound lending. Currently, the value of a home’s green features is rarely part of the equation.

The Appraisal Institute encourages use of the form not just by appraisers, but also by lenders, homebuilders, real estate agents and the homeowners themselves. Lenders can request that the form is included with Form 1004 or provide it to homeowners to fill out and give to appraisers. Real estate agents can use the data to help populate the multiple listing service (MLS). Key stakeholders in the homebuying process can all take advantage of this new tool.

NeighborWorks America has done work with the Appraisal Institute in the past. In 2010, NeighborWorks partnered with the Appraisal Institute, the US Green Building Council and others to help the National Association of Realtors® develop a Green MLS Toolkit. The tool kit was created to help Realtors® add green fields to their local multiple listing service, so that it is easier to market and identify green homes for homebuyers and sellers.

The Appraisal Institute’s latest tool can be downloaded here.

New York Housing Counselors and Partners Strategize Next Stage of Helping Homeowners Facing Foreclosure





Darryl Towns, Commissioner/CEO
NYS Homes and Community Renewal



With funding for an extensive network of foreclosure counseling and legal services in New York set to expire in December, housing counselors and their partners throughout the state recently met to strategize about a path forward.

“By 2011, we thought the crisis would be done,” remarked Hilary Lamishaw, of the NYS Coalition for Excellence in Homeownership Education, as she opened the daylong conference. “We don’t know what the service delivery system will look like, but regardless, homeowners are going to have to be served,” Lamishaw added.

Housing counselors and their partners had been gathering at regional meetings leading up to the conference, discussing what might happen in their communities post-funding, sharing best practices and lessons learned.

The conference, sponsored by the NYS Coalition for Excellence in Homeownership Education, the Empire Justice Center and NeighborWorks America, with funds provided by New York State Homes and Community Renewal, provided an opportunity to hear about trends and models from throughout the country. The models included effective triage, on-line intakes, weekly webinars, and technologies such as Hope Loan Port, which have brought new efficiencies in service delivery and cost in other states. Faced with the loss of federal and state funding, Community Development Corporation of Long Island, a local NeighborWorks affiliate, is planning to hold group foreclosure intervention sessions.



Housing counselors weigh in on major topics that will serve as a starting point
for a statewide foreclosure prevention plan.



Lou Tisler, executive director of Neighborhood Housing Services of Cleveland, discussed the positive long-term impact Ohio Governor’s Foreclosure Prevention Task Force has had in giving the issue the political cachet needed to innovate.

Faith Schwartz with the Hope Now Alliance emphasized that it is important to embrace technology so that the work gets done.

Josh Zinner with the New York Community Economic Development Advocacy Project noted that although unemployment may be the immediate trigger now for delinquencies, underneath is often a sub-prime or predatory loan that makes the homeowner at increased risk.

The need for a fair and honest approach to principal reduction was another recurring theme as the audience considered what might really help mitigate foreclosure.

Conference participants developed a series of recommendations to serve as a start of a statewide plan of action, including strategies addressing policy, outreach, fee-for-service and funding, statewide collaboration, and improving the efficiency of counseling and legal issues. Plans are also under way for the development of uniform homeowner education materials that can be accessed from a single point of entry.

“We are facing similar issues in Philadelphia so that is why I came,” said Allison Hughes of the Homeownership Counseling Association of the Delaware Valley. “I thought that morale would be low, but everyone here is upbeat and focused, and the discussion has been great.”

“It was a strong collaboration between government, the courts, housing counselors, legal services, and elected officials in New York State that built an effective response to foreclosure over the last three years. Now that funds are scarce, we will need that collaboration more than ever as we chart a new path on behalf of New York’s homeowners,” said Deborah Boatright, NeighborWorks America Northeast regional director.

In San Francisco, Gordon Chin Left a Legacy of Building Bridges

Rep. Nancy Pelosi presents Chin with his American Flag

Chinatown CDC’s founding Executive Director Gordon Chin retired last Friday drawing national praise for his contributions to San Francisco's communities and to the field of community development since 1977.

About 800 people attended a gala celebration of Chinatown CDC's 34th anniversary and farewell tribute to Chin, including the honorable Congresswoman Nancy Pelosi and special guests such as San Francisco Mayor Ed Lee and Assemblyman Mark Leno. Representative Pelosi paid tribute to Chin by presenting him with a United States flag flown in Washington, D.C. in his name.

Chin’s leadership at Chinatown CDC has had a huge impact on San Francisco residents and neighborhoods. The organization assists more than 4,000 residents and manages 2,300 units of housing in the greater San Francisco area.



 San Francisco Mayor Ed Lee honors Gordon Chin

The nonprofit is one of San Francisco’s most important
community organizations because of its leadership in affordable housing issues and city matters in the past 30 years, Doug Shoemaker, director of the Mayor’s Office of Housing told the San Francisco Chronicle.

Robert Burns, director of Field Operations for NeighborWorks America added, “Gordon's work on behalf of low income and working class residents of San Francisco embodied the core values of NeighborWorks and sets an example for all of us to follow within our own communities.”

Chin spoke of his 34 years at Chinatown CDC as the best and thanked his wife Dorothy for all her support. He plans to write, consult and focus on developing The Gordon Chin Leadership Fund, which will expand community leadership programs and enhance Chinatown CDC's ability to respond quickly to important community issues.

“It’s always been about building bridges between people, partnerships within the community and between communities,” Chin said.

"A heartfelt thanks to all of you who joined us for the evening celebration," said Fei Tsen, chair of Chinatown CDC board of directors. "It was a truly joyful event and so great to have the opportunity to speak with so many of you. On behalf of the children and families who benefit from your help, a very special mahalo from the heart."

On October 1, Norman Fong became Chinatown CDC's executive director. He has been with the nonprofit since 1990. Fong is committed to building upon Chin's legacy and model of leadership to ensure Chinatown CDC continues pave the way in the community development field.

Housing Partnership Network and Citi Foundation Launch Fund to Advance Innovations in Neighborhood Stabilization

Citi Foundation announced recently that it is committing $2.75 million to the Housing Partnership Network (HPN) to support the neighborhood stabilization efforts of community-based housing organizations in 10 metropolitan areas across the country. The Innovations in Neighborhood Stabilization and Foreclosure Prevention Initiative will provide the community based organizations with grants and other resources to support high-impact neighborhood revitalization projects over a two-year period. HPN has been a partner with NeighborWorks America and five other national organizations in neighborhood stabilization efforts through the National Community Stabilization Trust. HPN also collaborates with NeighborWorks America on the StrengthMatters Initiative.

Four NeighborWorks organizations will be a part of the Citi Foundation and HPN initiative:

Housing Development Fund will work to stabilize Connecticut cities with high rates of foreclosure by developing a cohort of “landlord entrepreneurs” who will play a significant role as owner-occupants in a new, coordinated financing and training model for the purchase, rehabilitation and responsible management of owner-occupied small multi-family properties.

HAP Housing will advance strategic neighborhood approaches for the stabilization of three low-income Springfield, Massachusetts neighborhoods hit hard first by the effects of foreclosures and abandonment, and then by a devastating F-3 tornado on June 1, 2011.

Neighborhood Housing Services of Chicago will implement a new model for advising homeowners through a network of Resolution Specialists who will work in partnership with the homeowner, lender, and servicer to modify mortgages through the new national Mortgage Resolution Fund effort.

Neighborhood Housing Services of New York City, Inc. (NHSNYC) in collaboration with the New York Mortgage Coalition (NYMC) and the Long Island Housing Partnership (LIDP) will create a foreclosure intervention program for existing homeowners who may qualify to own or rent their homes if prices were reset to current market valuations.

Proposed Jobs Bill Includes $15 Billion for Project Rebuild, “Next Generation” of NSP

by Sarah Greenberg,
Senior Manager for Community Stabilization
NeighborWorks America

This post originally appeared in Stabilize, the blog of NeighborWorks America's Stable Communities Initiative.

President Obama has proposed the American Jobs Act, containing a variety of incentives and programs aimed at getting more Americans back to work.

One of the components of the bill is Project Rebuild, described as the “next generation” of the Neighborhood Stabilization Program (NSP). The bill proposes a $15 billion budget (more than double the total allocations of NSP Rounds 1, 2 and 3 combined) — two-thirds of which would be allocated directly to participating jurisdictions (as in NSP Rounds 1 and 3), and the other third would be allocated through a competitive process (as in NSP Round 2).

The overall American Jobs Act and Project Rebuild are drawing criticism, and their likelihood of passage is uncertain. Project Rebuild is intended to connect Americans looking for work, with the work needed to repair and repurpose residential and commercial properties. Like NSP, Project Rebuild would be focused on acquiring, rehabilitating and re-occupying foreclosed residential property, but there are several modifications:

• It broadens eligible uses to allow commercial projects and other job creating activities, capped at 30 percent.
  Many regions with concentrated home foreclosures also have concentrations of vacant commercial structures that weigh on property values and make it less likely that new businesses will come into the community and invest new capital. Project Rebuild will tackle this problem directly by allowing grantees to rebuild and repurpose distressed commercial real estate.
• Up to 10 percent of formula grants may be used for establishing and operating a jobs program to maintain eligible properties in target neighborhoods.
  Project Rebuild will enable grantees to use funds to establish property maintenance programs to create jobs and mitigate “visible scars” left by vacant/abandoned properties.
• Each state will receive a minimum of $20 million of the $10 billion in formula funds.
• Beyond this baseline, funds will be targeted to areas with home foreclosures, homes in default or delinquency, and other factors determined by HUD, such as unemployment, commercial foreclosures, and other economic conditions.

Project Rebuild also seeks to scale up successful land bank models, providing infusions of capital to leverage private sector investment, and to empower and expand collaborations with for-profit developers where appropriate.

Other features of Project Rebuild include:

• Project Rebuild will provide funding to purchase, rehabilitate, and/or redevelop foreclosed, abandoned, demolished, or vacant properties. Funding can also establish and operate land banks or demolish blighted structures.
• Project Rebuild will support an estimated 191,000 jobs and treat at least 150,000 properties across all 50 states.
• HUD will allocate formula funds within 30 days of Congressional enactment of Project Rebuild, complete the competition, and obligate all funds within 150 days of enactment. Grantees will have three years to spend 100 percent of funding. HUD will establish further benchmarks for expenditures at one year and two years.
• Formula funding will go directly to states and entitlement communities across the country. Competitive funds will be available to states, local governments, for-profit entities, non-profit entities and consortia of these entities.
• Strict standards of oversight will ensure good stewardship of these funds. HUD will strengthen existing accountability procedures by requiring that grantees have an internal auditor to continually monitor grantee performance to prevent fraud or abuse. Grantees will be required to provide quarterly progress reports and HUD will recapture funds from underperforming or mismanaged grantees to reallocate those funds to areas with greatest need.

The Project Rebuild proposal is an acknowledgement of the importance of neighborhoods to Americans’ quality of life and to the economy, and of the effective work of nonprofits, government and their private sector partners in stabilizing communities.

Project Rebuild would leverage the significant investment in capacity building of grantees and their partners in foreclosed property acquisition, rehab and repurposing. By adding much-needed capital to this capacity, Project Rebuild has the potential to not only create jobs, but to enable communities to scale up their impact and achieve the momentum necessary to tip more neighborhoods back to a trend of improvement.

Here are a Fact Sheet and FAQ on Project Rebuild.