NeighborWorks Affiliate Receives International Recognition for Innovative Housing Solutions

NeighborWorks America is very excited to share that San Francisco affiliate Tenderloin Neighborhood Development Corporation’s (TNDC) 990 Polk Street project has been selected as the U.S. Finalist for the 2011 World Habitat Award. This is an international award established in 1985 by the Building and Social Housing Foundation as part of its contribution to the United Nations International Year of Shelter for the Homeless.

The eight finalists and two winners were selected from more than 250 entries from 82 countries around the world. TNDC’s 990 Polk Street development was the only United States finalist and one of only two selected from all of North America.

990 Polk was selected for its innovative approach to housing a diverse mix of low-income and formerly homeless seniors, both in its social services model and its innovative and green design. The World Habitat Award rewards practical and innovative solutions to current housing needs and problems. 

“Being selected as an award finalist is exciting for TNDC because it highlights our innovative housing solutions in a global context,” said TNDC Executive Director Donald Falk. “We are particularly proud of this accomplishment because it was truly an ‘all hands on deck’ effort…to meet every standard for World Habitat Award’s strenuous three-stage entry process.”  

HUD Secretary Shaun Donovan Hails Property Owned by Hawaii NeighborWorks Affiliate as Model for the Nation

(l-r): HUD Secretary Shaun Donovan; Hawaii Governor
Neil Abercrombie; Hawaii Mutual Housing Association
Executive Director Dave Nakamura; Mutual Housing
Board President Dee Dee Letts; Palolo Homes Resident
Services Manager Dahlia Asuega 

During a recent visit to the state of Hawaii, HUD Secretary Shaun Donovan hailed Palolo Valley Homes, owned by NeighborWorks Affiliate Mutual Housing Association of Hawaii, as a national model for the successful privatization of public housing. Hawaii Governor Neil Abercrombie accompanied the secretary on a tour of the 300-unit property that houses low-income families. [View photos]

With a $1.7 million grant from HUD and additional funding from public and private sector partners, Palolo Valley Homes was renovated with new services and amenities such as a state-of-the-art learning center, children’s play area and a health examination room. With federal funds in short supply, partnerships like the one put to use in Palolo are being looked at for housing across the nation.

“We have a comprehensive housing policy in Hawaii that includes repairing and building public housing units where people feel safe in their community and proud of their home,” Governor Abercrombie said.

“I will go back to Washington D.C. inspired by your example,” Secretary Donovan said during his visit to Palolo Valley Homes. “We want innovative techniques in bringing nonprofit and private partners to the table to make a community truly a home to its residents.”

The governor and housing secretary also visited Hawaii Public Housing Authority’s Mayor Wright housing, where partnerships are being looked at to make much-needed renovations.
Learn more about the Secretary’s visit.

Mortgage Refinancing Challenges Banks and Consumers

Today’s story in the Wall Street Journal — “Mortgage Refinancing Wave Poses Challenge for Banks” — highlights another obstacle for consumers who want to take advantage of record low mortgage interest rates.

Al Yoon writes:

“The capacity of banks to handle refinancings is a key issue for investors in mortgage-backed securities, whose returns are now among the most sensitive-ever to refinancings. The higher the hurdles for consumers, the better for investors who want to avoid the early repayment of principal at face value that produces a loss to bonds priced well-above that level.”

Just last week NeighborWorks America pointed out three additional obstacles that consumers who are interested in refinancing their mortgages are currently facing: a much higher credit score is needed to qualify, lost home equity in the foreclosure crisis, and cash needed for closing costs.

If you are interested in refinancing and would like to find out whether you could qualify, visit any of the more than 100 NeighborWorks HomeOwnership Centers located across the country.

NeighborWorks’ Focus on Innovations in Affordable Rental Housing



In today’s turbulent economy, working families need consistent access to affordable housing more than ever. Changing family work situations, the unabated foreclosure crisis and more stringent mortgage loan requirements mean that for millions of families, renting an apartment or house is the only option. This has resulted in a sharp increase in the demand for affordable rentals, a critical need that NeighborWorks organizations are meeting in neighborhoods and communities across the country.

NeighborWorks America has focused on asset management since we began providing national services to our network’s providers of rentals. As a result, over 175 NeighborWorks organizations successfully provide affordable homes that 80,000 families and seniors are proud to call home. These apartments and rental houses are safe, great looking, energy-efficient and well managed. Many of our affiliates also offer highly effective services — to more than 100,000 residents — to help them succeed. Children succeed in school and parents succeed in saving, improving credit scores, and managing their budgets.

Written by Frances Ferguson, Senior Manager
National Real Estate Programs
NeighborWorks America

NeighborWorks America continues to look at the best ways of supporting our network and other nonprofit providers of rental housing, particularly as federal, state and local budget cuts of program services put strains on the affordable housing industry. 

At the next symposium on December 14 in Washington, DC, NeighborWorks will explore how nonprofits of various sizes and market areas are adjusting and innovating to sustain and grow the numbers of people they can serve through affordable rental housing. This symposium, Building on Strength: Invigorating Business Models for Affordable Rental Housing in the New Era, will focus on practical solutions to the capital gaps in affordable rental housing development by highlighting examples of organizations developing new partnerships, new types of real estate transactions, and new business models.

Between 2004 and 2010, the number of renters in the U.S. grew by nearly 4 million. Success at delivering much-needed affordable rental housing in the future may mean that nonprofit housing providers will have to look at new business strategies for long-term sustainability. To join the discussion about this very timely and important issue, register for the symposium at www.nw.org/training.

NeighborWorks America Sees Obstacles to Significant Refinance Activity

Record low mortgage interest rates should be a boost to the economy as homeowners reduce their monthly housing costs and recycle the monthly savings back into the economy. But Marietta Rodriguez, National Director of Homeownership and Lending at NeighborWorks America, points out three realities of today’s mortgage market that suggest a refinance wave may not happen for many homeowners.

1. It is more difficult to qualify for a mortgage these days than ever before. Prior to the housing bust, a credit score of 650 made a homeowner easily eligible for the lowest rate available. Today, a homeowner needs a much higher credit score — often above 700 — to obtain the lowest rate possible, and make refinancing a net positive.
   
   "With today's risk-based pricing for mortgages, it's not unusual for a homeowner who wants to refinance to hear about the record low rates in the market, and is surprised to learn that he doesn't qualify for that rate. The risk-based rate could be a percentage point or higher, sometimes making a refinance not worth it at all," said Robert Tourigny, executive director of NeighborWorks Greater Manchester, and the local NeighborWorks HomeOwnership Center.
   
   
2. Once a homeowner has decided that she wants to pursue a refinance, the reality of just how much home equity was lost in the housing crisis becomes plain. Without 20 percent equity, the best mortgage rates are out of reach. Ten percent gets a seat at the refi table, but 28 percent of homeowners with a mortgage are “underwater,” or owe more than their homes are worth, according to research firm Zillow.
   
   “Even those homeowners who have a sufficient credit score — millions of them — are just unable to participate because they don’t the home equity to qualify for a refinance mortgage,” said Rodriguez.
   
   
3. A homeowner who can't bring closing costs to the table— typically at least one percent of the refi loan amount— also can't refinance into a lower mortgage payment, and strengthen their household budgets. Household income is still not robust, and while savings rates have increased since the recession began, not many homeowners have the thousands of dollars in cash required to pay for closing costs.
   
   “The bottom line is that although mortgage rates haven't seen levels like this in decades, forces beyond the interest rate will likely hold back any significant refinance activity — the kind that we would expect to see when mortgage rates dropped to these levels,” said Rodriguez.
   
   

Homeowners who are considering taking the first step to refinance their mortgage are encouraged to see a homeownership advisor from one of the more than 100 NeighborWorks HomeOwnership Centers located around the country.

A local NeighborWorks HomeOwnership Center can be found at www.nw.org/homeownership.