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CitiesFirst® Launches New Homeownership Initiative In Akron October 20, 2003 Conference Vice President Akron (OH) Mayor Donald J. Plusquellic held a CitiesFirst® Roundtable discussion September 29 in Akron. Scott Syphax, President of the Nehemiah Corporation of California, the nation's leading privately funded provider of down payment assistance, joined with Plusquellic to discuss strategies for dealing with the housing issues facing the city. The city is constantly looking for ways to improve the economic and social conditions of downtown neighborhoods that have been the victim of blight and neglect. Additionally, it is of great importance to increase housing production in the city center to encourage residents to stay in downtown Akron rather than look towards living in the suburbs. Gathering with the leading members of the Akron real estate, home building and mortgage finance communities, along with area nonprofit organizations, Plusquellic and Scott Syphax, President and CEO of Nehemiah Corporation, addressed these concerns while offering potential strategies and solutions for the future. These included ways in which Nehemiah's down payment assistance program, The Nehemiah Program®, can be better utilized in the community. They also announced an integral addition to the housing solution in the form of the Nehemiah Community Reinvestment Fund™ (NCRF), a nonprofit community development loan fund offered to mayors through the CitiesFirst® program. Syphax announced that NCRF, capitalized at $5.5 million, is extending its new initiative "Moving People from Homelessness to Homeownership" in the Akron metro area. NCRF will begin making short-term, low interest loans to community and faith-based nonprofit organizations for the development of affordable, workforce and special needs housing as well as community facilities and economic development in low-income and underserved communities. "In addition to improving our educational system, housing remains a top priority for the city of Akron," said Plusquellic. "Through CitiesFirst®, our partnership program with Nehemiah, and our relationship with the U.S. Conference of Mayors, Akron is able to now utilize the tremendous benefits that Nehemiah can provide to cities. We are anxious to further the work already done by The Nehemiah Program® in our area and look forward to the Nehemiah Community Reinvestment Fund™ assisting the Akron's community and faith-based organizations." Founded in 1999 by Nehemiah, NCRF has been making self-funded loans and equity investments in community development projects in California since 2000. "Nehemiah Community Reinvestment Fund™ was established to support our organization's overall strategy of encouraging community revitalization through comprehensive, regionally-focused affordable housing and community redevelopment programs. This initiative will allow Nehemiah to reach into the Akron market in new ways and make a greater impact than ever before," said Syphax. The loans will range in size from $10,000 to $750,000 and will have terms extending up to 5 years. NCRF will exclusively offer short-term loans in order to maintain a constantly recycling pool of funds, thus allowing the fund to finance many more projects and achieve greater community impact within the Akron community. NCRF's housing loans will finance all phases of affordable and workforce housing development from feasibility studies and land purchase to construction and short-term permanent financing. A wide variety of projects will be eligible including rental housing, senior residences, single room occupancy units, and housing for people with special needs and the formerly homeless as well as ownership housing. Community facilities loans will support a wide range of community- and faith-based organizations, and essential human service agencies, including churches, providers of child care, health care, employment training, substance abuse and AIDS services, senior services and educational facilities. NCRF's economic development loans will finance projects that create jobs and contribute to the economic revitalization of neighborhoods located in low-income census tracts including mixed-use developments, offices, retail and small business incubators. All borrowers will receive technical assistance tailored to meet the needs of their organization or project. All borrowers will receive technical assistance tailored to meet the needs of their organization or project. "Nehemiah is committed to serving the continuum of housing needs for Akron residents. By working in partnership with local, regional and national institutional investors, NCRF will act as a financial conduit of capital resources to local nonprofit organizations working to rebuild their community from the inside out," said Peggy Jones, NCRF's director. "Flexible, financially prudent use of debt, when accompanied by one-on-one technical assistance, is a powerful tool for community revitalization." Over the next three years, NCRF expects to make loans totaling nearly $13 million for community development projects nationwide, worth in excess of $40 million. Concentrating efforts in a few areas of Akron may allow new neighborhoods to prosper and serve as an example of positive change and urban redevelopment. CitiesFirst® will continue to work very closely with Akron to ensure the NCRF is a success. For more information about CitiesFirst®, or to host a roundtable in your city, please contact Managing Director, Dana Bykowski at the U.S. Conference of Mayors headquarters at (202) 296-4094 or dbykowski@usmayors.org. |
