Housing and Neighborhood Development Services, Inc.
Housing and Neighborhood Development Services, Inc.
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Operation Neighborhood RecoveryBulk purchase of defaulted mortgages in the Newark, NJ area.March, 2009 By purchasing 47 mortgages, HANDS, Inc. is dealing with the neighborhood fallout of the foreclosure crisis – homes deteriorating and bringing down neighborhood quality of life. By intervening in the neighborhoods of greater Essex County, HANDS will minimize the destabilizing influence of foreclosed properties. HANDS negotiated with one lender to purchase a group of mortgages associated with a large real estate fraud and subsequent bankruptcy. All of the loans are on vacant properties, in serious default where foreclosure proceedings had not yet been initiated. Since many of these properties are in and around HANDS’ neighborhoods, we hoped to ensure that they didn’t deteriorate further and wanted to quickly return them to productive use. HANDS purchased the 47 mortgage loans and will foreclose and expeditiously clear title to all the properties. HANDS will manage and maintain the properties during the title clearance period. Once title is cleared, HANDS will quickly move to implement its development strategy. Mortgage Purchase – Initially, an exclusive 60 day due diligence period was negotiated, to evaluate the 47 mortgages and the properties. Based on the detailed research by a foreclosure attorney, title company, realty appraiser and construction expert, an informed offer was presented by HANDS, negotiated and accepted. In March, 2009 the mortgage purchase transaction was closed. Collaborative Redevelopment Effort – Six more CDCs have stepped up to head off the impact of these mostly vacant properties on their neighborhoods. The collaborating organizations are: La Casa de Don Pedro, Unified Vailsburg Services Organization, Episcopal Community Development, Newark Housing Partnership, Brand New Day, and HOMECorp. The CDCs have committed early to step in once title has been cleared and to act as property redevelopers with HANDS. HANDS will rehabilitate several of the properties and sell them to prepared first time buyers. Newark. Irvington, East Orange and Orange and the County of Essex are partnering with the CDC’s on efforts to make the resale of the properties affordable. Financing partners - New Jersey Community Capital, Prudential Social Investments, LISC, NeighborWorks® America and Enterprise Community Partners. Operation Neighborhood Recovery is the first transaction in a larger comprehensive effort aimed at the wave of foreclosed properties that continues to impact our neighborhoods. For more information, contact: Patrick Morrissy, Director HANDS, Inc. 973-678-3110 x 1 patrick@handsinc.org.
PartnersLa Casa De Don Pedro - A community based development corporation that fosters self-sufficiency, empowerment, and neighborhood revitalization. La Casa’s work is organized into five divisions which are an internal mechanism for dividing the comprehensive nature of our work. The work in each division complements and supports the work of the overall organization. The Credit Union and Construction affiliates blossomed as we identified service gaps in our community. Unified Vailsburg Services Organization - Unified Vailsburg Services Organization (UVSO) is a neighborhood based human services and community development agency founded by local residents in 1972. The goal of the organization was to "create a stable and compassionate community" by bringing together representatives of various local groups in an attempt to solve some of the neighborhood problems. Brand New Day - Twenty-four years after starting as a pioneer in developing quality, affordable housing from blighted properties, Brand New Day has emerged as a cutting edge community revitalization organization having a holistic approach to empowering communities. In addition to housing development, Brand New Day provides free financial fitness; homebuyer education; credit counseling; post-purchase counseling; foreclosure prevention services; and community organizing. All this, along with property and asset management, is done with a volunteer Board of Directors and fifteen full-time staff. Brand New Day, Inc.'s mission is "to revitalize and enhance the quality of life for low and moderate income families, through the development, management, and preservation of affordable housing; expanding wealth creation opportunities through home ownership and neighborhood-based economic development, and advocate for social stability in the state of New Jersey." Brand New Day looks forward to our partnership with H.A.N.D.S. working together to reclaim neighborhoods by rehabilitating properties for affordable housing and stabilizing surrounding communities. HomeCorp - HOMECorp is a community-based non-profit organization formed in 1988 by concerned residents and religious institutions in Montclair, New Jersey to improve and develop housing in Montclair. Its mission is to provide safe, permanently affordable housing in Montclair and to promote neighborhood development. As an organization, HOMECorp seeks to strengthen the community foundation by assisting families who are largely disenfranchised from the robust housing market in Montclair. Greater Newark Housing Partnership -
The Greater Newark Housing Partnership, Inc. was created to expand upon the work
of its affiliate, the Housing Partnership Development Corporation (“HPDC”),
which for 25 years, has worked to revitalize urban communities through the
development of quality affordable and workforce housing. GNHP works with the
City of Newark to provide technical assistance and support for the disposition
and redevelopment of city owned properties within the city’s most vulnerable
neighborhoods. GNHP’s responsibilities include managing all aspects of the
development process and ensuring the rehabilitation and creation of affordable
housing. FundersNeighborWorks America – NeighborWorks America creates opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. Since 1991, we have assisted nearly 1.2 million low- to moderate-income families with their housing needs. Much of our success is achieved through our support of the NeighborWorks network ― more than 230 community development organizations working in more than 4,400 urban, suburban and rural communities in all 50 states, the District of Columbia and Puerto Rico. In the last five years, NeighborWorks organizations have generated more than $15 billion in reinvestment in these communities. NeighborWorks America is the nation’s leading trainer of community development and affordable housing professionals. Local Initiatives Support Corporation – Greater Newark & Jersey City (LISC) - The Local Initiatives Support Corporation (LISC) is dedicated to helping community residents transform distressed neighborhoods into healthy and sustainable communities of choice and opportunity. Their program staff is based in every city and many of the rural areas where LISC-supported community development takes shape. In collaboration with local community development groups, LISC staff help identify priorities and challenges, delivering the most appropriate support to meet local needs. New Jersey Community Capital - New Jersey Community Capital is a nonprofit corporation and is certified as a community development financial institution ("CDFI") by the U.S. Department of Treasury's CDFI Fund. It is an effective provider of capital and consulting services because of its involvement in its constituent communities and an understanding of the trends and issues affecting the community development field. The Prudential Foundation – Founded in 1977, The Prudential Foundation is a not-for-profit corporation supported by The Prudential Insurance Company of America, a subsidiary of Prudential Financial, Inc. (NYSE:PRU). In order to promote sustainable communities and improve social outcomes for community residents, The Prudential Foundation focuses its grant making strategy in the areas of education, economic development and arts and civic infrastructure. In 2008, The Prudential Foundation made a total of 302 grants totaling $15 million in support of this strategy. In addition, the Foundation also supports the community engagement efforts of Prudential employees through Matching Gifts and other special programs that recognize their volunteer efforts. In 2008, the Foundation supported these employee efforts with $7 million.The Prudential Foundation is part of Prudential Financial's Community Resources Department, which includes: the Social Investment Program, which originates and manages socially beneficial investments; Local Initiatives, which coordinates employee volunteerism and fosters community outreach; and Business Diversity Outreach, which facilitates diverse market development and outreach efforts for Prudential businesses. Enterprise Community Partners - Enterprise is a leading provider of the development capital and expertise it takes to create decent, affordable homes and rebuild communities. For more than 25 years, Enterprise has introduced neighborhood solutions through public-private partnerships with financial institutions, governments, community organizations and others that share our vision. Enterprise has raised and invested more than $10 billion in equity, grants and loans to help build or preserve more than a quarter of a million affordable rental and for-sale homes to create vital communities. Enterprise is currently investing in communities at a rate of $1 billion a year. Visit www.enterprisecommunity.org and www.enterprisecommunity.com to learn more about Enterprise's efforts to build communities and opportunity. During our over 20 years in New York City, Enterprise has created 30,000 affordable homes to house nearly 100,000 low-income New Yorkers, and has committed $2 billion in equity, grants, and loans to community development projects across the city. Every year, Enterprise New York helps 3,000 families save at least a collective $27 million that they can invest in their futures.
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