Aug. 15, 2014 — Families across the state are realizing their dreams of homeownership thanks to Neighborhood Stabilization Program (NSP) partnerships between Initiative Capital and local community economic development agencies.
Initiative Capital has leveraged its initial $3.67 million in federal NSP funding to invest in the rehabilitation of 44 foreclosed properties that were sold at affordable prices to low- to moderate-income individuals and families who were first-time homebuyers.
According to a recent Housing Matters survey, 52 percent of Americans are faced with unaffordable housing prices that force them to take on additional work hours or second jobs, move to less safe neighborhoods, accumulate credit card debt, or cut back on crucial expenses such as healthcare, healthy foods or retirement savings.
Another way that Initiative Capital is addressing this housing crisis is by making green building and energy efficiency priorities for its NSP investments. The resulting lower energy bills will further reduce the housing cost burden for families.
Through two rounds of NSP investments, the N.C. Indian Housing Authority (NCIHA) in Fayetteville has received $912,262 from Initiative Capital, and completed nine home renovations. One of their homes sold on July 21 to Wayne and Helen Hunt, a deaf couple who struggled to purchase a home in the past.
NCIHA’s housing services coordinator worked with the Hunts to develop a plan to improve their credit, grow their savings and take steps toward homeownership. They were able to move the Hunts into a renovated NSP home on a rent-to-own contract, where their low monthly rent payments went toward their eventual purchase of the home. They were able to pay $400 per month, compared to their previous rent of $600, and that allowed them to save $200 per month to use for closing costs on their new home.
On July 21, the Hunts closed on their mortgage. They received $8,000 in down payment assistance from the Lumbee Tribe, and purchased their home for $79,600.
“Initiative Capital’s overall goal for the Neighborhood Stabilization Program is to provide safe and affordable homes for families of all backgrounds,” said Chris Gonzalez, Initiative Capital’s housing program officer. “The Indian Housing Authority turned a foreclosed house into an opportunity for the Hunts to own and live in a safe, energy-efficient home and be a part of a community.”
For more information on Initiative Capital’s Neighborhood Stabilization Program, visit www.ncinitiative.org/financial-investments/nsp, or contact Gonzalez at 919-835-6073 or cgonzalez@ncinitiative.org.
The N.C. Community Development Initiative leads North Carolina’s collaborative community economic development effort, driving innovation, investment and action to create prosperous, sustainable communities. For more information, visit www.ncinitiative.org.