Federally Owned Properties. Thanks to the Committee's support in FY 1994, many NeighborWorks® organizations explored more deeply the acquisition of federally owned properties. Since large numbers of these properties, both single-family and multifamily, remain in many NeighborWorks® target areas, we plan to more widely apply what For instance, several NeighborWorks® organizations have conducted auctions of privately and publicly held single-family houses which graduates of NeighborWorks® Homebuyers Clubs have been able to successfully purchase, rehab and we have learned. Occupy. The impact on the family, block and neighborhood is hard to describe. In Savannah last spring, when 52 homes were sold in a single day, the entire community felt the lift. In Chicago, the NeighborWorks® organization has joined with several others to purchase groups of HUD property and catalyze a serious renewal of the Roseland neighborhood. By seizing on such hidden opportunities in Savannah, Chicago and other locales, we can help turn liabilities into assets for the families and their communities. Small Town and Rural Challenges. During the past several years we have worked to strengthen the NeighborWorks® network in smaller towns and rural areas. While funding is a continuous challenge, NeighborWorks® organizations are proving to be highly successful in combining national resources in combination with the sweat equity of the residents in their service areas. Recently, a dozen of 89-497 - 95 - 15 these organizations formed an alliance to utilize a joint capital fund, thus enabling our resources to be recycled among them. They are currently seeking matching foundation grants to expand the fund. NHSA remains critical to the Increased Impact from NHSA. NeighborWorks® network's growth. In addition to its ongoing secondary market operation, NHSA has stepped up its support during the past year of the 83 local programs in the Campaign for Home Ownership, particularly through the purchase of first, second and third mortgages that do not meet conventional standards. To extend its reach NHSA, through several social investors, offered limited capacity to support local lenders who want to originate nontraditional mortgages but need those mortgages "taken out" by a secondary source as they become familiar with community development lending. I fully expect to report next year that FY 1995 was NHSA's most successful year to date, and will be able to predict a continued growth trend for FY 1996. In closing, I believe that Neighborhood Reinvestment has the capacity to absorb and strategically use a measured increase in appropriated funds. The need for our system of leveraging local investment is certainly present. Our track record has shown that the large amounts of private capital currently available can be tapped through the creative efforts of local partnerships between community residents, committed private lenders and insurers, and concerned public officials. We expect a continued and growing success in demonstrating that for thousands of people, in hundreds of communities, renewal begins with a family secure in where they live. I thank you for your support and look forward to your questions. 89-497 905 February 1995 (1) Source: Home Mortgage Disclosure Act (HMDA) 1992; Aggregate Tables. Government backed loans include FHA, VA and FmHA mortgages. (2) The US Census counts Hispanic Origin as an ethnic category included in the racial groups. (3) Source: National Association of Realtors, 1994 "Real Estate Outlook v.1 no.6 p14. Neighborhood Reinvestment Corporation HOME OWNERSHIP CAMPAIGN FIRST AND SECOND PHASE 55 NEIGHBORWORKS ORGANIZATIONS (18 Month Data Ending June 1994) Average Cost per Housing Unit: $48,658 [Average for US: $133,500] O Average Monthly Payment: $442 O Home ownership is less costly than renting for 35% of the new homeowners O Forty-three percent of new homeowners are female headed households |