Operation Neighborhood Recovery: Housing and Neighborhood Development Services, Inc.

The foreclosure crisis unfolded fast and furiously in New Jersey, requiring local community development corporations to respond with equal pace and determination. One CDC in New Jersey — Housing and Neighborhood Development Services, or HANDS — created Operation Neighborhood Recovery as a way to respond quickly to the rising number of REOs in the state. The ONR program allows the organization to negotiate the purchase of foreclosed properties, in bulk, from banks. The nonprofit then moves quickly to clean up and maintain the properties. This case study reviews the types of funds needed to acquire mortgages and the providers of those funds. It also describes the units acquired and restoration work, as well as necessary program features including subsidies, construction financing, buyer financing, homebuyer education and more. Program challenges are shared as well as lessons learned.