We are excited to share with you the next installment in our ongoing series highlighting NeighborWorks organizations that were awarded low-cost, long-term capital to empower them to expand their homeownership initiatives in communities of color. To read previous stories of awardees, click here.
New Jersey Community Capital will use the $1,000,000 loan to support the acquisition, rehabilitation, and reconstruction of single-family homes in low-to-moderate income communities in New Jersey. The funds will support their single-family preservation and rehabilitation activities, which return vacant or foreclosed properties into productive use as quickly as possible to provide affordable homeownership opportunities. The organization expects to acquire, rehabilitate and sell more than 400 homes over the seven-year term of the loan.
This loan will help New Jersey Community Capital to expand their activities in the City of Trenton, an area of New Jersey where they have not previously focused. Trenton, the state capital, has a population of 90,000, of which more than 42% of the population is Black and 45% identifies as Hispanic. Housing prices in Trenton have increased by more than 10% over the last three years and affordability continues to be a growing problem. The median home sale price in Trenton over the past 12 months was $306,000, nearly six times the median income. Additionally, the homeownership rate in Trenton is 38%, far below the state average of 64%, indicating a severe need for affordable homeownership opportunities.
New Jersey Community Capital is a certified Community Development Financial Institution (CDFI) with a mission to advance equity and opportunity through strategic investments in traditionally underserved communities. Through integrative models of investment and financing, they expand opportunities and promote economic growth to strengthen neighborhoods, improve individual and community health and well-being, and ensure that underserved communities thrive.
Neighborhood Housing Services of Baltimore (NHS of Baltimore) will use the $1,000,000 loan to expand its efforts to acquire and rehab vacant townhomes for sale to low-to-moderate income buyers in West Baltimore’s predominantly Black neighborhoods. The organization plans to acquire, rehab, and sell 291 homes over the seven-year loan term. In 2025, NHS of Baltimore anticipates 26 home sales and expects to grow production by approximately 15% annually.
The organization is focused on raising more capital for this effort and recently secured a $1.5MM grant from Wells Fargo for the program. Of the total homes produced, it is anticipated that 100% will be sold to Black homebuyers, of which 51% will have incomes at or below 80% of AMI, and the remainder will have incomes at or below 120% of AMI. In addition to increasing homeownership opportunities for communities of color, the program utilizes minority and female-owned developers and contractors to rehab the homes.
NHS of Baltimore is a certified CDFI and the organization recently celebrated its 50th anniversary. Historically, it has focused its efforts on revitalizing Baltimore neighborhoods by providing rehab loans for existing homeowners. The organization also provides homebuyer education, loans, and down payment assistance to first time homebuyers. In 2023, NHS of Baltimore provided homebuyer education classes to 615 customers and one-on-one counseling to 479 customers. Of the 479 participants, 270 purchased homes.
Thank you again to Wells Fargo for their support in making this program possible. We are currently working to secure additional capital to support even more NWOs in their work and look forward to sharing more news about those efforts soon!
