NeighborWorks America Receives More than $4.8M in HUD Support for Housing Counseling

The U.S. Department of Housing and Urban Development (HUD) has awarded NeighborWorks America $4,860,802, which will support training and certification opportunities for thousands of counselors from HUD-approved nonprofit counseling agencies, as well as nonprofit housing counseling at local NeighborWorks organizations.

“The grants announced by Secretary Donovan provide tremendous support for the critical housing counseling and training activities being carried out by NeighborWorks America and our affiliated NeighborWorks organizations across the country,” said Jayna Bower, director of the NeighborWorks Center Homeownership Education and Counseling (NCHEC). “Homeownership education and counseling enables families to make sound financial decisions and achieve and sustain homeownership, which contributes to healthy, stable communities nationwide.”

Of the $4.8 million awarded, $3.2 million will enable NCHEC and the NeighborWorks Training Institute to provide nationally-recognized training and certification to thousands of counselors, including more than 1,300 training scholarships throughout the year. About $1.6 million will provide direct operational support to individual HUD-approved NeighborWorks organizations that provide nonprofit housing counseling in their communities.

More details are in the NeighborWorks newsroom.

NeighborWorks America Announces $1.9 Million in Community Stabilization Grants

Today NeighborWorks America announced that it awarded a total of $1.9 million in community stabilization grants to 38 local NeighborWorks organizations throughout the country. Each NeighborWorks organization will use its $50,000 grant to support its community stabilization efforts, which are primarily focused on acquiring, renovating, and selling foreclosed or vacant homes to low- and moderate-income families.

Altogether, the NeighborWorks organization grantees and their local strategic partners plan to purchase 2,800 housing units. After necessary improvements, 1,400 homes will be sold, 630 will become rental housing, and 322 will be sold through lease-purchase programs. In addition, approximately 451 blighted homes are slated for demolition. Just over 8,000 prospective homeowners will be served through pre-purchase counseling programs expanded to address the challenges of buying bank-owned properties.

Read more about where these grants are going and how they will be used.

NeighborWorks America Supports Extension of Homebuyer Tax Credit

NeighborWorks America applauds the latest decision by Congress and the Obama Administration to renew the homebuyer tax credit and make the credit available to both first-time homebuyers and repeat homeowners who have lived in their homes for five years.

Regardless of whether you are a first-time homebuyer or an existing homeowner ready to make your next home purchase, NeighborWorks urges all homebuyers to seek homeownership education from a HUD-approved nonprofit organization before purchasing a home.

“Buying a home is a complex financial transaction and homeowners who begin the process with the right information through homeownership education lay the groundwork for long-term success for themselves and the community at-large,” said Ken Wade, CEO of NeighborWorks America. “Millions have been affected by the short-term approach to homeownership that was prevalent earlier this decade. Had homebuyers had adequate access to homebuyer education prior to their home purchases, I am sure that the foreclosure crisis would have been less severe.”

For 30 years, the NeighborWorks network and nearly 100 other locally-based nonprofit organizations have worked with thousands of homebuyers to help them achieve their dream of long-term homeownership. These HUD-approved counseling organizations have trained counselors on-staff, ready to advise families one-on-one and help them make the right homeownership choices for them. View a list of NeighborWorks Homeownership Centers to find homeownership education courses offered near you.

Fannie Mae Offers Rental Option to Borrowers in Foreclosure

Homeowners in trouble are being offered a new option to stay in their homes if they can’t pay their mortgage. On November 5, Fannie Mae announced that it will begin allowing borrowers on the verge of foreclosure to rent back their homes for up to one year.

The new Deeds for Lease Program is designed for borrowers who do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification. Under the program, borrowers transfer their property to the lender by completing a deed in lieu of foreclosure, and then lease back the house at a market rate.

“This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities," Fannie Mae Vice President Jay Ryan said in a statement.

In interviews with the Associated Press, two members of the NeighborWorks America network had different takes on the new Fannie Mae effort to stave off foreclosures.

"It shows that you put your best effort to work out a solution," said Gabe Del Rio, director of homeownership at Community HousingWorks of San Diego.

However, Mike Himes, director of homeownership services at NeighborWorks Sacramento, said the industry should push harder to modify loans at lower monthly payments. “The preferred option is allowing people to retain ownership,” he said.

Read Fannie Mae Press Release.

Read AP story.

NeighborWorks Northeast District Honors Newark Mayor Cory A. Booker and F.B. Heron Foundation President Sharon King

The Honorable Cory A. Booker, mayor of Newark and Sharon King, president of the F.B. Heron Foundation were honored as “Visionary Leaders in Community Development” at the Fourth Annual NeighborWorks America Northeast District Reception, hosted by the Federal Home Loan Bank of New York on Park Avenue in Manhattan.

The Annual District Reception, known as “A Community United,” drew 300 leaders from the housing field, finance, government, foundations and nonprofits.

NeighborWorks America CEO Ken Wade spoke about Mayor Booker’s dedication to “development without displacement” in more than doubling the number of affordable housing units in the City of Newark while significantly reducing crime, beautifying public spaces and enforcing an aggressive anti-abandonment strategy.

King, a long-time NeighborWorks supporter, was cited by Wade for having “shaped a foundation that is known for its uncommonly close partnership with grantees -- a collaboration based on a culture of engagement, trust, mutual learning and a focus on results.”

Read more.