For Immediate Release
February 28, 2008
NeighborWorks® America Seeks Nonprofit Solutions to Growing Number of Empty Homes in Neighborhoods Across the Country
Washington, D.C. – As foreclosed properties left vacant or abandoned are destabilizing communities across the country, a growing inventory of real estate owned (REO) properties by lenders and servicers is generating new ideas at NeighborWorks America. Top neighborhood stabilization strategies under development include a national entity created by nonprofit organizations to facilitate the disposition of REO properties, and pilot projects in local communities to rehabilitate abandoned properties into affordable homes or quality rental units.
NeighborWorks America, along with its network of more than 230 local housing nonprofit organizations, is concerned about the thousands of homes that may be left vacant due to the ongoing foreclosure crisis. As a result, NeighborWorks America is working with other leading national nonprofit organizations and local partners to develop a multi-faceted plan, including a national partnership structure that could negotiate the discounted acquisition of REO properties for the benefit of local communities.
In addition to the comprehensive plan, two NeighborWorks organizations are already involved in innovative pilot programs using New Markets Tax Credits to rehabilitate hundreds of vacant and abandoned REO homes in declining housing markets to create affordable housing, increase homeownership opportunities, and improve neighborhoods over the long term. Other creative pilot projects are currently in the planning process at NeighborWorks organizations across the country.
“The foreclosure crisis is hollowing out communities by leaving in its wake a sea of empty houses where no one lives anymore,” said NeighborWorks America CEO Ken Wade. “The influx of REO properties presents a unique challenge for housing nonprofits. As an industry, we must find a way to make these communities affordable and livable again.
We need to bring residents back to these once-thriving areas with affordable housing, employment, community services, and green space. We remain steadfast in our commitment to create affordable housing opportunities and stable, vibrant communities across the nation.”
In May, NeighborWorks will convene industry leaders to explore what can be done with the sizable inventory of REO homes at its NeighborWorks Training Institute in Cincinnati, Ohio. Leaders will discuss possible solutions, including how the foreclosure crisis can have the unintended positive effect of increasing the availability of affordable housing.
For more information, contact Erin Angell, 202-220-6317, eangell@nw.org, or Douglas Robinson, 202-220-2360, drobinson@nw.org.
About NeighborWorks 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. To date, we have assisted nearly 850,000 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 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 $12.4 billion in reinvestment in these communities. NeighborWorks America is the nation’s leading trainer of community development and affordable housing professionals. www.nw.org.
