Plans for Neighborhood Stabilization Program 2
An overview of our intended use of NSP 2 funds.
To help provide a measure of stability to distressed areas across the country, Self-Help is seeking $15 million in NSP-2 funds to capitalize a loan loss reserve for permanent financing for the disposition and redeployment of foreclosed properties in these communities. The majority of this financing shall be made available through Self-Help’s national secondary market program with complementary financing accessible in select markets through our commercial lending program.
The hallmark of our secondary market offerings is our recently introduced lease-purchase mortgage product. This product has been designed specifically to contribute to foreclosure recovery efforts by helping to occupy vacant properties as quickly as possible and to provide families with credit and savings deficiencies the support they need to transition into homeownership. Households that are mortgage-ready will be served more directly by accessing credit through our standard secondary market product. Having provided $4.5 billion in financing to over 50,000 borrowers over the last two decades, Self-Help is especially well-positioned to leverage federal resources to address critical shortages in mortgage liquidity, particularly among communities of color and borrowers with limited income.
In order to promote a more concentrated impact on struggling communities, Self-Help will also offer commercial financing directly to housing developers looking to redeploy foreclosed properties. This financing will include owner/investor mortgages as well as a developer line of credit for the acquisition and rehab of both single-family and multi-family properties. While the owner/investor mortgages will be used by small-scale developers seeking to convert bank-owned properties into affordable rental housing, the line of credit product will target developers with greater capacity that need additional liquidity to achieve the impacts they seek.
In promoting these products, we will focus on select markets where we have strategic partnerships and existing relationships, such as the California's Central Valley and Bay Areas; as well as targeted areas in the cities of Chicago, Los Angeles, New Haven and Atlanta. For a more complete explanation of the activities we will be taking on and their respective service areas, please see our Program Summary.
We encourage anyone with comments on or questions about or plans, particularly those that reside in the targeted areas, to contact us by e-mailing NSP2info@self-help.org.
