NeighborWorks Capital is pleased to extend a $1.5 million pre-development construction line of credit to New Kensington CDC (NKCDC) in Philadelphia, PA. Funds will be used for the predevelopment of commercial buildings and community facilities in the Kensington Avenue corridor.
NKCDC is developing multiple properties in the area as part of a more comprehensive effort to eliminate blight and vacancy, provide goods and services needed by residents, and restore some degree of normalcy to a neighborhood that for years has endured the violence and trauma that come with declining employment, disinvestment, poverty, the drug trade, and a large population of unhoused individuals suffering from substance abuse disorder.
New Kensington CDC, in partnership with other long-established community organizations in the neighborhood, has developed a comprehensive plan for reversing the severe distress in the community by stabilizing key properties along Kensington Avenue, the main commercial street in the neighborhood. The Kensington Avenue Redevelopment: Health, Wellness, and Healing plan includes strategies for increased community participation in decision-making; acquiring properties that are vacant, underused, and blighted and are convenient for the drug trade and attendant crimes; securing control of “anchor” properties and rapidly redeveloping them into community assets; and identifying and securing resources that can be invested quickly.
NKCDC is an influential organization in Kensington with a long tenure of activity and wide-ranging service offerings. The organization has a strong voice in advocating to political leaders for resources and opportunities and in seeking funding from philanthropies. NKCDC has secured grant funding for nearly all the development costs for the project. This line of credit from NeighborWorks Capital will allow the organization to accelerate its predevelopment activities before receiving grant proceeds.
The potential impact of the project is significant. The first property will be rehabilitated into a Center for Community Engagement, hosting meetings and gatherings to provide a forum for community involvement in the redevelopment and revitalization process. The second property will be a site for NKCDC’s SNAP-Ed and Nourish food programs. The third property is currently operated by a healthcare provider focused on individuals with substance abuse disorders and will have increased capacity with planned building improvements.
NeighborWorks Capital began our partnership with NKCDC in 2013 and has extended one other predevelopment loan to the organization. We are proud to continue our partnership in support of their community-driven, trauma-informed, and equity-focused work.
Learn more about NeighborWorks Capital’s competitively priced, fixed-rate loan capital that is available to members of the NeighborWorks network. Visit our lending solutions page for more information.