Reports and Studies

Unmet demand for affordable rental housing in most U.S. housing markets represents an opportunity for nonprofit organizations. Despite the potential benefits available through affordable rental housing creation and preservation, nonprofits still need to carefully assess their internal and external environment to determine whether they are well suited to enter this business. This paper identifies and assesses the internal and external drivers that shape decisions made by organizations in this field and that are often critical to successful projects. These drivers were identified through a review of relevant literature, interviews and focus groups with leading policymakers and practitioners, and analysis of survey responses from NeighborWorks America organizations.

The most important factors considered in decisions to enter and remain in the affordable rental housing business are market conditions, organizational mission, and the contribution of a project to a nonprofit's financial bottom line. Findings also indicate that the state of many of the internal and external factors that affect organizations' decisions in this field are not static, but can be shifted in a more optimal direction. Strategies that describe how to create a better environment in which to conduct an affordable rental business are also offered in this paper and include partnerships and long-term planning. Suggestions are made for nonprofits already in or considering entering the affordable rental housing line of business; potential partners, both nonprofit and for-profit; and policymakers, funders and regulators of affordable rental housing. Complete info »

Community based organizations have been providing mortgage loans in low-to-moderate income and minority communities on a small scale since the 1970s. These include community or economic development organizations, loan funds, and not-for-profit homeownership centers. Organizations offer different types of products: some offer subsidized, below market mortgages, others offer entirely market-rate. Many offer only subordinate loans, for purchase or home rehabilitation, while a smaller number offer first mortgages for home purchase. In general, these organizations seem to do a good job delivering mortgages to low-income communities; underwriting processes are often more flexible and personal than mainstream lenders, and almost always involve counseling and education. Default rates tend to be below the market average. Research on the relative performance of prime and subprime loans made to similar borrowers, generally those who had problematic credit histories or low incomes, has confirmed the wisdom of this model; borrowers targeted by subprime lenders are not inherently problematic; rather, the nature of the loan products was key to the subprime mortgage crisis.



However, many community based organizations are facing serious challenges post foreclosure crisis and in the context of a deeply troubled housing market. The organizations use a myriad of strategies for offering loans, ranging from referrals systems to mortgage banking. While most are quite successful with homebuyer education and counseling, many struggle with access to capital and generating profit through lending. Scale is increasingly important in lending and brokerage businesses. Regulatory changes that include increased licensing requirements may add substantial cost for loan originators. Most community based lenders depend on being able to sell loans on the secondary market, but they face loss and uncertainty with the withdrawal of their primary secondary market for subordinate loans and an unknown future for Fannie Mae and Freddie Mac. Finally, some community based organizations are attempting to respond to some of the many problems left in the wake of the financial crisis, including large numbers of vacant homes and underwater homeowners. Complete info »

This paper presents an analysis of the community development field and of NeighborWorks organizations in Puerto Rico as a conceptual framework for developing a changed intervention strategy by Neighborhood Reinvestment Corporation. It was developed by Tubal Padilla Galiano, management consultant, with research and other assistance from Deepak Lamba Nieves, community development intern. Our hope is to promote a focused discussion that will lead to the necessary adjustments for the effective development of Puerto Rico-based NeighborWorks organizations. Complete info »

Changes in bankruptcy laws have two impacts on NeighborWorks organization and similar housing counseling agencies. First, clients in financial crisis seeking assistance may have more difficulty filing bankruptcy than under previous regulations. Second, the new law requires credit counseling and debtor education, services which some nonprofit organizations may decide to provide. Organizations need to understand the new provisions of the law to guide existing counseling programs, and should thoroughly analyze the requirements for providing counseling or education services before considering entering the bankruptcy counseling field. Complete info »

"Americans are caught in an image of housing that's over 20 years old -- they are really surprised when they see what affordable housing is now." Nancy Belden of Belden Russonello & Stewart elegantly captured the challenge of the perception gap between public opinion and the reality of affordable housing. On May 5 and 6, 2004, the Neighborhood Reinvestment Corporation, in partnership with The Campaign for Affordable Housing, analyzed the challenge of closing that gap in its fourth NeighborWorks Symposium on Multifamily Excellence.

The symposium, held in Minneapolis, was entitled "Changing Minds, Building Communities: Advancing Affordable Housing through Communications Campaigns." The symposium brought together 300 local and national affordable housing leaders from across many organizational and institutional sectors to engage in a day of candid exchange on one issue key to strengthening communities and expanding housing opportunities. The issue? How we can better communicate publicly and through marketing campaigns to advance the development of homes all Americans can afford.

While affordable housing stories are often filled with conflict, and projects are completed against the odds, participants were energized and enthused to find that successes are happening across the country. Fifteen successful cases were used as a backdrop against which key issues were discussed and debated. The context for these successes was demonstrated through opinion research that shows untapped opportunities for support -- a kind of new "silent majority" that recognizes and is concerned about the corrosive effect affordability problems have on families and communities.

However, the affordable housing industry will only tap that support if it learns to employ professional communications tools to move its message from simply "housing" to "homes, family and community."

From case studies, research, and the candid reactions and debate from participants, 10 key points emerged that suggest a communications strategy for the affordable housing community. Complete info »

NeighborWorks organizations from the Black Hills of South Dakota to Jacksonville, Florida, and from Inglewood, California to Burlington, Vermont are transforming communities through community building and organizing. By training residents to participate in and lead the development of their neighborhoods, these community development organizations have created models for sustainable community revitalization. By bringing individuals together and building their public participation and leadership skills, these organizations have generated millions of dollars of investment and inspired hope.

During this past year, the 32 organizations participating in the NeighborWorks Community Building and Organizing (CB&O) Initiative have recorded 40,000 incidents of resident engagement in their communities, and attracted $39.8 million in new investment. For every dollar these organizations have spent on community building and organizing staff, another $35 has been invested in their communities as a result.

Communities across the United States are stronger because of the work of the organizations that have participated in the CB&O Initiative during its first year. Complete info »

Annual report of NeighborWorks America's Community Building and Organizing Initiative. Complete info »

Sprawling development patterns have had a direct impact on the neighborhoods that community development corporations (CDCs) seek to serve. While CDCs continue to work arduously to improve conditions for members of their communities, they are often swimming against a formidable tide that is pulling economic, social and political resources toward the fringes of their metropolitan areas. CDCs are not the only organizations concerned with the effects of job and population deconcentration on older parts of a region. Smart Growth advocates, also, seek to combat such patterns. They promote regional land-use planning, development around existing infrastructure, mixed-use and mixed-income development throughout the region, and investment in older-city and inner-suburban neighborhoods. The Smart Growth agenda has gained significant attention and political momentum in recent years. The rising importance of the Smart Growth agenda in shaping state and regional policy provides significant opportunities for CDCs to increase their impact, both from the more-focused perspective of production and organizational programming, as well as from the broader perspective of advocacy. In addition, CDCs have much to offer advocates of the Smart Growth agenda, particularly from the ways in which CDC development provides examples of Smart Growth production, from which Smart Growth advocates might learn.

This paper will identify the opportunities for CDCs to participate in the Smart Growth movement, and strategies they might employ to do so. This report seeks to explore one facet of how CDCs might facilitate the rebirth of cities, by examining the potential relationship between community development and Smart Growth. Complete info »

Community based organizations, funders, and intermediary organizations working in the community development field have a shared interest in building stronger organizations and stronger communities. Through evaluation these organizations can learn how their programs and activities contribute to the achievement of these goals, and how to improve their effectiveness and the well-being of their communities. Yet, evaluation is rarely seen as part of a non-judgemental organizational learning process. Instead, the term "evaluation" has often generated anxiety and confusion. The Community Development Storymap project is a response to those concerns.

Illustrations found in this document were produced by Grove Consultants. Complete info »

Community development organizations must be increasingly cognizant of and responsive to their changing neighborhoods. Major demographic factors related to the growth and influx of recent immigrants to the United States are having a notable impact on many communities. Through a review of current research and interviews with leading experts and practitioners of community development organizations, private lenders and governmental agencies, this analysis explores (1) the importance of immigrants in community development, (2) the response of community development organizations to recent demographic shifts, and (3) the challenges and opportunities practitioners face when connecting immigrants to their communities.

Despite growing research about the implications of immigrant markets for the private sector, there is little research about the role and contributions of community development organizations in the integration of new immigrants. Immigration trends and characteristics are different today than those of the late nineteenth and early twentieth centuries. This research concludes that these new demographics drive much of the dynamic change in cities across the United States. CDOs can best address the changes at the local level, but need more data and market analysis of neighborhood trends. These organizations are in a key position to connect newcomers not only to long-term housing, but also to business development, jobs and leadership opportunities through strategic partnerships and planning. Complete info »