NeighborWorks Invested More than $1.3 Billion in Rental Housing in FY 2011

The NeighborWorks network invested more than $1.3 billion into rental housing in the fiscal year ended Sept. 30, 2011. In addition, the number of rental homes owned or managed by the NeighborWorks network exceed 90,000 at Sept. 30.

“In one of the toughest markets for securing capital for quality, affordable rental housing, the NeighborWorks network pushed ahead and found the partners they needed to create great housing for families,” said Eileen Fitzgerald, CEO of NeighborWorks America.

The total investment represents more than 2,800 new apartments built by NeighborWorks, and more than 5,100 homes purchased or significantly rehabbed.

“The investment by the network in these homes created jobs all around the country and helped to secure the long-term availability of great places to live for working families,” added Fitzgerald.

The overall expectations are that the network’s total portfolio will reach 100,000 rental homes in 2013, through a combination of new member affiliation, purchase and new construction.

Despite the forecast for total NeighborWorks portfolio growth over the next few years, the outlook for the broader affordable rental housing is uncertain.

“Government housing budgets at all levels are under stress and the competition for capital priced at rates that make housing accessible for working families, while improved from a year ago, is still a factor in creating quality affordable rental homes for families with modest incomes. In short, the cost to construct, purchase and refinance homes to ensure tenant affordability remains a challenge,” said Fitzgerald.

Faced with these twin realities – reduced resources from government and higher borrowing costs and tight underwriting standards – NeighborWorks America is increasing its efforts to attract social investor capital to the rental housing market.

Fitzgerald noted that the two capital corporations associated with NeighborWorks builders and owners – Community Housing Capital, Decatur, GA, and NeighborWorks Capital, Silver Spring, MD – are essential to the overall effort to bring more social investor capital to the affordable rental housing sector.

Social investors such as the Calvert Foundation and the S.H Cowell Foundation are just two of the investors who have already recognized the triple-bottom line value of investing in quality, affordable rental homes.

Homeport Plans ‘Extreme Makeover’ of Columbus Communities

By Ascala Sisk
Senior Manager, Neighborhood Stabilization
NeighborWorks America

As I watched the ABC program “Extreme Makeover” during the holidays, I saw in the faces of an entire community why neighborhood revitalization is so important.

Through the efforts of NeighborWorks member Homeport in Columbus, Ohio, the ABC hit show came to American Addition, a neighborhood Columbus Mayor Michael B. Coleman said was “the most egregiously neglected urban neighborhood I have ever seen.”

It was heartwarming to see national visibility brought to the work Homeport is doing to invest in this distressed neighborhood, and to see the true impact rebuilding a community has on families. Neighborhood stabilization is more than rehabbing abandoned and foreclosed homes and buildings, putting them up for sale or rent and protecting property values.

Extreme Makeover reveals the Rhodes family's new home.
Homeport helped the family submit its application to the show.
View full episode and house tour.

It is also about the people. It is about putting families back in homes, providing safe and secure communities, and bringing back important community connections and infrastructure, such as parks, playgrounds and community spaces.

This is the long-term vision Homeport has for American Addition. The organization used Extreme Makeover as a launching pad for its efforts to rebuild 100 new homes over the next 10 years using Neighborhood Stabilization Program grants, city funds and private investments. In October 2011, Homeport broke ground on the first six lots with homes to be completed by February 2012. All of the houses will be built to green standards. [See Homeport’s story behind Extreme Makeover and American Addition].

If you’d like to see how else Homeport and other NSP grantees are successfully using program funds to reinvest in declining neighborhoods, view these videos. The videos were produced by HUD in collaboration with NeighborWorks America and Enterprise Community Partners.

Foreclosure Counseling Nearly Doubles Chances of Mortgage Modification, Reduces Likelihood of Re-default by at Least 67 Percent

By Eileen Fitzgerald,
CEO, NeighborWorks America

I’m excited to share with you today the results of a new report prepared by the Urban Institute on the consumer benefits of the National Foreclosure Mitigation Counseling (NFMC) Program.

The report shows that the NFMC program works incredibly well for homeowners and communities. Homeowners who received NFMC counseling were nearly twice as likely to obtain a mortgage modification as those who did not seek assistance from an NFMC foreclosure prevention counselor. Homeowners counseled through NFMC were at least 67 percent more likely to remain current on their mortgage nine months after receiving one.

The report also shows that homeowners received, on average, a mortgage modification that lowered their payment by $176 more per month, than homeowners who didn’t work with an NFMC counselor – a savings of close to $2,100 a year.This reduction in household expenses can free up funds for paying off debt, saving for college and meeting other needs.

The improved long-term sustainability of the borrower is led largely by the financial counseling that is a part of foreclosure prevention, not by the lower mortgage payment obtained. The personalized work nonprofit housing counselors do to help homeowners improve their overall financial situation had the greatest effect on a homeowner not falling behind again on their mortgages in the future.

The NFMC program also has benefits for mortgage servicers and investors. By significantly reducing the chance that a homeowner re-defaults after a mortgage modification, servicers are saved added expense. This tells us that increased servicer investment in partnerships with nonprofit counselors is a win for everyone.

If you’d like to learn more, I was recently interviewed about this report. See YouTube video.

NeighborWorks America Honors Senator Kit Bond with Lifetime Achievement Award



Former Senator Bond receives Lifetime Achievement Award.
(L-R): Kit Bond; Mark Stalsworth, executive director,
Kansas City NHS; John A. Wood, assistant city manager
 for neighborhoods, City of Kansas City;
Eileen Fitzgerald, CEO, NeighborWorks America 

NeighborWorks America, as part of its NeighborWorks Training Institute in Washington, DC this week, honored Former Senator Christopher S. “Kit” Bond with a lifetime achievement award for his more than 40 years of support to America’s families.
Presenting the award to Senator Bond, NeighborWorks America CEO Eileen Fitzgerald noted that he is known for a long string of accomplishments on behalf of families and accessible housing, beginning with his service as Missouri’s youngest governor and continuing through four terms as one of Missouri’s U.S. Senators.

“Senator Bond has been a leader for families and housing,” said Fitzgerald. “He continues that leadership as a co-chair of the Bipartisan Policy Center’s Housing Commission. We are excited and sincerely honored to recognize Senator Bond for all the work that he’s done and continues to do for housing in the United States.”

Learn more about Senator Kit Bond's work in support of affordable housing.

NeighborWorks Member Homeport Brings ABC’s 'Extreme Makeover: Home Edition' to Ohio



The Rhodes family was surprised to learn they will
get a new home from ABC's Extreme Makeover.
WATCH THE VIDEO.
Tune in to ABC on Friday, Dec. 16 at
8pm, EST to see the transformation!

 

NeighborWorks member Homeport aka Columbus Housing Partnership assisted the ABC network program Extreme Makeover: Home Edition to bring attention to the Rhodes family and the forgotten Ohio neighborhood called American Addition, where they lived.

According to the Columbus Dispatch, the neighborhood has been singled out by Columbus Mayor Michael B. Coleman as “the most egregiously neglected urban neighborhood I have ever seen.” The mayor is investing $5 million to rebuild streets and alleys and install sidewalks, lights, curbs, waterlines and storm-sewer lines, while federal Neighborhood Stabilization Project money will help to pay for 150 new homes.

The city doesn’t have to worry about one of those homes, however. It has been rebuilt by the cast and crew of Extreme Makeover. The process started two years ago, when Homeport’s volunteers and staff went door to door talking to families and helping those interested in completing the lengthy application process. Homeport helped the families create videos to accompany their applications and helped shoot additional supporting video discussing the neglected neighborhood's history.

In August, the cast of Extreme Makeover knocked on the door of James and Jackie Rhodes and surprised them with the news that they had been chosen to receive a brand new home because of their family’s love and commitment to each other. The Dispatch reports that the Rhodes had taken in their daughter Mikia and her four children, after Mikia had emergency surgery to cure a brain tumor. She slept with her children — ages 7, 9, 15 and 18 — in the main sitting room on the first floor, while her parents occupied the only bedroom upstairs. The home was not only cramped, it was also in desperate need of repair.

Now thanks to Homeport and Extreme Makeover, the Rhodes have a brand new home for the holidays. The episode showing the whole process will air on Friday, December 16 at 8 p.m. Eastern time. Some members of the Homeport team made cameo appearances in the show as elves and others may appear talking about the organization's programs. Tune in!