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Implementing the Neighborhood Stabilization Program (NSP): Community Stabilization in the NeighborWorks Network

This report presents case studies of 12 nonprofit housing and community development organizations working to stabilize communities hit hard by foreclosures.  Each provides a powerful example of the 5 Cs of community stabilization, a paradigm developed by the National Community Stabilization Trust to help define and identify effective local community stabilization efforts.

5 Cs of Community Stabilization

Comprehensive – Community stabilization efforts should result from a plan that addresses all destabilizing forces in the community. 

Concentration – Community stabilization efforts should be targeted for maximum impact.

Collaboration – Community stabilization efforts should include a broad array of partners with a strong focus on resident engagement.

Capacity – Community stabilization efforts should be undertaken by organizations with demonstrated capacity in the planned activities.

Capital – Community stabilization efforts should be adequately capitalized and explore creative methods to take advantage of new sources of capital.

Case Study Summaries

1. Home HeadQuarters, Inc. – Syracuse, NY
Concentrated, Collaboration, Capacity, Capital

Collaborated with local residents and a wide range of stakeholders to focus community stabilization and revitalization efforts within a 15-20-block area (the SALT District). Used a combination of resources, including NSP and conventional lines of credit, to acquire and redevelop foreclosed, vacant and abandoned properties.

2. Housing and Neighborhood Development Services, Inc. – Orange, NJ
Collaboration, Capacity, Capital

Collaborated with nonprofit, for-profit and municipal agencies to acquire and redevelop foreclosed inventory. Pioneered an innovative model to acquire the mortgages on 47 foreclosed 1-4 family homes (92 units) and raised $3.6 million in equity and debt to complete the purchase. Local nonprofit partners renovate and re-sell the properties to eligible homeowners.

3. Neighborhood Development Services, Inc. – Ravenna, OH
Concentration, Collaboration, Capacity

In the small city of Barberton, helped acquire a 24-unit property from foreclosure and redeveloped it into an attractive community asset,
preserving affordable housing units. Collaborated with local, county and state agencies to acquire needed capital and capacity and engaged residents in the process of designing the improvements of the target property.

4. Neighborhood Housing Services of Orange County – Anaheim, CA
Collaboration, Capacity, Capital

Collaborated with nonprofit, municipal and for-profit entities to access the capital and the capacity needed to acquire, renovate and resale foreclosed homes to eligible buyers. Accessed NSP1, NSP2 and lines of credit provided by a community development financial institution
(CDFI).

5. Neighborhood Housing Services of Kansas City – Kansas City, MO
Comprehensive, Collaboration, Capacity

Became a one-stop shop for NSP buyers; identifying properties, providing first mortgage loans, developing scope of work, managing construction, assisting buyer with obtaining downpayment assistance and closing the loan. Collaborated with non-profit and municipal entities to maximize capacity and expand access to resources.

6. Neighborhood Housing Services of South Florida – Ft. Lauderdale, FL
Collaboration, Capacity, Capital

Collaborated with nonprofits to apply for and implement NSP1 funding from city and county governments and to obtain NSP2 funding through a consortium application. Employed an innovative team approach to redeveloping foreclosed housing, utilizing partners’ strengths on specific steps of the process, rather than assigning units to individual developers to handle from start to finish.

7. NeighborWorks® Salt Lake – Salt Lake City, UT
Comprehensive, Concentration, Collaboration, Capacity, Capital

Prevented foreclosure crisis in target neighborhoods by strengthening neighborhood resistance to predatory lending through  homeownership education, leadership development and other community building strategies. Collaborated with for-profit, nonprofit and public partners to create a new entity for efficient utilization of NSP funds.

8. New Directions Housing Corporation – Louisville, KY & Floyd & Clark Counties, IN
Comprehensive, Concentration, Collaboration, Capacity

Used NSP1 funds to acquire and renovate foreclosed and abandoned single-family homes to help jumpstart the Midtown Renaissance. Worked collaboratively with local residents, realtors, municipal agencies and nonprofit organizations to access capacity to complete ambitious stabilization and revitalization goals.

9. Nuestra Comunidad Development Corporation – Boston, MA
Comprehensive, Concentration, Collaboration, Capacity, Capital

Organized the community around crime prevention and neighborhood stabilization and community building activities in the Dacia Foreclosure Intervention Target area. Collaborated with residents as well as municipal and nonprofit partners to plan and implement strategies. Employed a comprehensive approach to revitalization that included housing redevelopment, job training for young adults and youth engagement activities.

10. Primavera Foundation – Tucson, AZ
Comprehensive, Concentration, Collaboration, Capacity, Capital

Promoted recovery in a high-poverty city through the integration of stabilization, revitalization and community engagement activities. Used NSP1 funding to acquire and renovate or replace foreclosed housing, involving residents in the design of the replacement homes. Partnered with residents of the Barrio Anita neighborhood to plan and construct a community garden that has strengthened resident relationships and engagement.

11. Southwest Minnesota Housing Partnership – Slayton, MN
Comprehensive, Concentration, Collaboration, Capacity, Capital

Partnered with the city of Worthington to help identify single- and multi-family housing needs and plan and implement community stabilization projects. Engaged residents and other stakeholders in comprehensive planning process, using its expertise to help access the resources needed to achieve housing and community stabilization goals.

12. Tampa Bay Community Development Corporation – Clearwater, FL
Collaboration, Capacity, Capital

Collaborated with Pasco County, other nonprofit developers, lenders and realtors in an innovative model for addressing high numbers of foreclosed properties. The County assumes the risk in a single-family purchase-rehab resale program; Tampa Bay CDC is guaranteed a $7,500 developer fee for a prescribed set of duties that includes identifying properties, overseeing construction and finding buyers.

SOURCE: NeighborWorks America