Residential Real EstateNeighborWorks Generates $1.4 Billion In Community Help
NeighborWorks, a confederation of 230 community-based non-profit organizations from throughout the country, generated more than $1.4 billion in affordable housing and community development activity during fiscal year 2001, which ended Sept. 30.
Local NeighborWorks members revitalize neighborhoods by mobilizing public, private and resident-led partnerships and tailoring their affordable housing, economic development and resident leadership activities to meet specific community needs. Together, their efforts involve thousands of residents, business people, government officials and others.
"The level of investment through the NeighborWorks organizations is tremendous, and reflects the commitment of partners, particularly in the financial services industry, who understand the benefit of investing in the strength and vitality of America"s communities," said Ellen Lazar, executive director of the Neighborhood Reinvestment Corp.
NRC, which created the NeighborWorks network, is a public non-profit company created by Congress in 1978 to create models for sustained revitalization of lower-income communities.
The 230 local groups directly invested $90.2 million from the organizations" revolving loan funds, the corporation said in its annual report to Congress. The money helped more than 33,600 lower-income families purchase, improve, and maintain their homes in fiscal year 2001.
In addition, 71,300 families nationwide received pre- and post-purchase counseling during the year. Local NeighborWorks organizations also owned or managed more than 29,000 multi-family dwellings during the year.
More than $1.1 billion of the 2001 investment supported home ownership efforts, resulting in 12,400 new ownership units. "Residents moving into the economic mainstream are helping secure their financial future, while taking part in the revitalization of their communities," said Lazar.
The average price of homes purchased through the network last year was about $90,000. By comparison, the national average cost of homes purchased through conventional means was $168,000.
Also, ethnic minorities comprised 52 percent of the first-time buyers, compared to just 15 percent of all buyers who purchased homes through conventional means.
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