National Community Stabilization Trust (NCST)
The National Community Stabilization Trust (NCST) is a new national nonprofit organization created to connect servicers and investors holding foreclosed properties with local organizations and coalitions working to stem the decline of communities with high concentrations of vacant and abandoned foreclosed properties.
The National Community Stabilization Trust is sponsored by:
The Trust and its Sponsors will focus on four key activities:
- The Trust will provide a more efficient and cost-effective mechanism for transferring foreclosed properties from servicers and investors to local groups working to stabilize targeted communities.
- The Trust will aggregate capital from national private and philanthropic sources and make financing available to support local efforts focused on the objective of stabilizing communities.
- The Sponsors of the Trust will coordinate their efforts to build local capacity, organize local collaborations, and share best practices to develop effective neighborhood stabilization programs.
- The Trust will serve as a focal point and a voice for the housing industry in the arena of foreclosed property reuse and community stabilization.
In early 2008, four of the largest national nonprofit intermediaries joined together to tackle the issue of vacant and abandoned foreclosed properties that were threatening decades of their affiliates' investments to revitalize communities across the country. Realizing that the problem was bigger than any one of them could address on their own, Enterprise Community Partners, Housing Partnership Network, LISC, and NeighborWorks America formed an unprecedented partnership to bring local solutions to scale. The goal of this innovative partnership was to form a new intermediary to connect national resources with local capacity to stabilize communities.
Throughout the summer of 2008, the sponsors worked with a team of consultants to make this vision a reality. With the support of the OCC, they convened a task force of the largest loan servicers to meet regularly in order to ensure that the industry would be willing to participate in the project. They worked with committees of each of their member organizations to learn more about the challenges communities are facing and make the NCST responsive to those challenges. They performed a data collection project in 20 cities to inform the development of business and financial models. Finally, they completed a test project to gather zip codes of communities affected by the crisis and compared them to servicer inventories of REO properties to confirm the viability of the models. Support for this comprehensive planning process was made possible by the generous support of the Ford and MacArthur Foundations.
For more information on the National Community Stabilization Trust, visit their web site.