The landmark $25 billion national mortgage foreclosure settlement reached Thursday is a start to helping distressed homeowners, but far more must be done to prevent the housing crisis from getting even worse, housing advocates and elected officials said yesterday.

One solution is for lenders to reduce the mortgage principal for homeowners who are current but owe more than their houses are worth, known as being “underwater,” so they do not become delinquent and face foreclosure. At a congressional field hearing in Plainfield yesterday, Sen. Robert Menendez (D-N.J.) announced the Preserving American Home Ownership Act, which would create a “shared appreciation mortgage” program in which banks modify the loans and, in exchange, would be entitled to a portion of the increased value of the home when it is sold or refinanced.

“There is a great deal more the government can do beyond what we’re doing,” said Menendez, who chairs the housing subcommittee of the Senate Committee on Banking, Housing and Urban Affairs.

Menendez organized the event, which was scheduled before the settlement was announced, to hear from housing counseling agencies, community financing organizations, housing experts and local elected officials about how the nationwide foreclosure crisis is affecting New Jersey residents. Menendez said he would take these insights back to his colleagues in Washington.

“Above all, this is a crisis,” said Alan Mallach, a senior fellow with the Brookings Institution who studies housing policy and who was on the panel. “If we do not do something and do something quickly to deal with these issues, one harvest of our inaction will be the collapse and impoverishment of literally hundreds of inner city neighborhoods and hundreds of thousands of lower-income families.”

Krishna Garlic, CEO of the counseling agency Brand New Day, told the story of one client, Regina, who lost her job unexpectedly and applied for a mortgage modification program. But the process took more than eight months and involved immense amounts of paperwork, all while fees continued to accrue. In the end, Regina was forced to sell her house and now her family rents a home in a different town, farther away from her new job.

“The family would have been better served if they could stay in their house,” Garlic said. “Banks should be allowed to lease back their houses after foreclosure to maintain stability in our neighborhoods.”

Phyllis Salowe-Kaye, executive director of New Jersey Citizen Action, explained the difficulties housing counselors face as a result of reduced funding. Plainfield Mayor Sharon Robinson-Briggs and Assemblyman Jerry Green (D-Union) described how abandoned properties in their towns have created a blight and torn communities apart, and how badly affordable housing is needed. And Wayne Meyer of New Jersey Community Capital outlined a number of the financing organization’s initiatives to restore neighborhoods by buying, acquiring and redeveloping distressed properties in targeted neighborhoods.

“It is vitally important that we figure out ways that we can gain possession in properties to still achieve goals of neighborhood stability,” Meyer said. “From a policy standpoint, we need to come to that realization if we’re going to start turning a corner on this problem.”

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“The persistent capacity among nonprofit community development organizations has always been notable … it is just more notable in present times … .” — Joseph McNeely, Executive Director, Central Baltimore Partnership

The Philadelphia Fed hosted a forum last August that focused on some of the different approaches used by community development organizations. The event, titled Models of Surviving and Thriving CDCs: A Forum on Organizational Approaches and Strategies, was jointly sponsored by the Philadelphia Fed, the Delaware Housing Coalition, the Housing and Community Development Network of New Jersey, and the Philadelphia Association of Community Development Corporations. The forum reflected the Fed’s ongoing interest in community development corporations (CDCs). The 40 attendees were experienced community development leaders. One central theme that all of the presenters focused on — despite the size, years in existence, or structure of their organization — was how critical partnerships and collaboration are to their effectiveness.

The keynote speaker, Joseph McNeely, and the other presenters discussed some of the different approaches used by their organizations. Following are some of the highlights of their presentations.

Central Baltimore Partnership: A New Type of Organization — A Virtual CDC

Joseph McNeely, executive director of the Central Baltimore Partnership (CBP), described his organization as a “virtual” CDC because the organization’s methodology and structure are different from that of traditional CDCs. The first major difference between the CBP’s virtual strategy and the traditional CDC strategy is that instead of spending time building an organization, the partners (e.g., universities, hospitals, government, and community organizations) first wanted to determine if they could actually work together and accomplish something. The second nontraditional aspect of the collaborative is that the members didn’t want to start with a plan — they wanted to start with an action. The collaborative took nearly a year to build. McNeely described the developmental stages of the collaborative: building relationships, deciding to work together, agreeing on development strategies, and implementing major project development.

In five years, the CBP has raised about $10 million and has received about $70 million in tax credits. McNeely emphasized that in the virtual CDC model, none of the money actually goes to programs run by the CBP itself. Rather, the funding goes to the programs or projects of the partners or to a collaboration of partners.

Asociación Puertorriqueños en Marcha and the Jonathan Rose Companies — Partnership for Large-Scale Development

Asociación Puertorriqueños en Marcha (APM) and the Jonathan Rose Companies recently signed an agreement to jointly develop a vacant property adjacent to the busy Temple University train station. The goal is to use the property for mixed-income housing as well as commercial and community facilities. Rose Gray, vice president for community and economic development of APM, recalled that in 2001, sustainability, green building, and transit-oriented development seemed like lofty goals for a very low-income neighborhood in Philadelphia. But in discussing her partnership with the Jonathan Rose Companies, Gray said, “One needs to step out of the realm of one’s own experience and be open to new things.”

Mark Levin, chief counsel at Regional Housing Legal Services and APM’s project attorney, pointed out that an organization such as APM doesn’t go from building single-purpose developments to a $47 million mixed-use, multiphase development with both low-income housing tax credits and new market tax credits. Levin explained that lenders to, and investors in, large-scale projects consider the developer’s financial strength, ability to provide guarantees, development experience, political power, contacts, and management and operating capacity. APM was able to adequately meet some of those concerns but needed a partner to help with the concerns it couldn’t meet. Levin also explained that, in addition to looking for a partner who has expertise in complementary areas, there are many other aspects of the partnership that must be worked out, such as how financial risk is allocated, how cash flow and developer’s fees are divided, who makes what decisions, and how disputes get resolved.

Paul Freitag, managing director for development at the Jonathan Rose Companies, stressed that the key to his company’s success with partnerships is “that as different as we may be, we still very much know each other’s business.” He explained that the goal is to have “both parties really understand what’s happening with each aspect of the project.” In addition, Freitag insisted that communications must be defined up front. The Jonathan Rose Companies and its partners develop a governance chart to maintain effective communications.

Community Asset Preservation Corporation — A Special Purpose Organization

According to Wayne Meyer, president and CEO of New Jersey Community Capital (NJCC), a 24-year-old community development financial institution (CDFI), “the lack of accessible, flexible capital is the barrier to neighborhoods doing their work.” Meyer explained that he believes that organizations must be able to collaborate and partner with one another. He maintained that partners have “to put skin in the game; each has to give up something to get something better. It’s not something that we traditionally have done well together as a field.” Every community development organization felt that it had to do everything — “everyone wanted to feel that they had to be everything to everybody.” According to Meyers, that model doesn’t work anymore.

In 2009, NJCC created a new nonprofit real estate organization to rehabilitate distressed neighborhoods. The model for the Community Assets Preservation Corporation (CAPC) was based on one that Meyers had used when he had worked at HANDS, Inc., in Orange, New Jersey, just prior to his joining NJCC in 2009. CAPC’s strategy is to arrange for discounted bulk purchases of bank-owned, nonperforming mortgages and foreclosed properties. The purpose of that strategy is to stabilize vulnerable neighborhoods, preserve individual community assets, protect homeowners and tenants from the effects of the foreclosure crisis, and increase the availability of affordable housing. As of August 2011, CAPC had purchased 153 units; its five-year goal is to purchase a total of 750–1,000 residential units. CAPC’s success relies on partnerships with local for-profit and nonprofit developers, civic associations, municipalities, lenders, and other organizations.

Urban Affairs Coalition — Providing Fiscal Sponsorship and Support Services

In addition to the programs that the Urban Affairs Coalition (UAC) operates directly to improve the quality of life in the region, it provides 75 nonprofit and government organizations with back office support and shared services. These services include finance and accounting, human resources, grant management, and program support, as well as shared costs for expenses such as purchasing and insurance. Bulk purchasing and contracting for highly specialized functions result in significant cost savings for participating organizations.

The UAC offers fiscal support and shared services to its participating organizations. Fiscal sponsorship, which is the most encompassing, provides comprehensive services to the organization, including the use of UAC’s section 501(c)(3) status. Under this arrangement, staff members employed in partnership organizations are considered to be UAC employees. The UAC also offers packages for collaborative services, fee for service, and consulting services, which allow organizations to operate under their own 501(c)(3) status. In addition to cost savings, fiscal support and shared services provide the receiving organization with other benefits such as additional time to pursue its mission, the ability to better weather an economic downturn, capacity building, and industry best practices, as well as an extensive network of contacts.

Cicely Peterson-Mangum, executive director of Logan CDC, agreed that her organization benefits significantly from UAC’s fiscal sponsorship. At the same time, Peterson-Mangum pointed out the challenges and trade-offs, particularly those associated with funders. Under fiscal sponsorship, the sponsored organization’s financial statements are aggregated with its sponsor’s financial statements, which could potentially lead funders to think that awarding grants to both organizations would be equivalent to awarding multiple grants to one organization. Similarly, because of the consolidated statements, lenders may not get as clear a picture of Logan’s financial position.

Ultimately, Peterson-Mangum agreed that the benefits of fiscal sponsorship outweigh the challenges. A major advantage is that it enables Logan CDC to provide high-quality health insurance for staff members at a fraction of the cost because the insurance is purchased under UAC’s health plan. Another advantage that Peterson-Mangum discussed is that UAC advances cash payments to ensure a stable and consistent cash flow environment.

The dilemmas of the fiscal sponsorship model are not unique to Logan CDC and the UAC, as there are many nonprofits throughout the country that operate through fiscal sponsorship.**

National Council on Agricultural Life and Labor Research Fund — Evolving to Further the Mission

The National Council on Agricultural Life and Labor Research Fund, Inc. (NCALL) is a 35-year-old organization that has changed over the course of its existence in response to the needs of its primary rural Delaware service area. Joe L. Myer, executive director since 1981, said that NCALL is a “bit of a hybrid organization.” It provides direct services such as homeownership counseling, foreclosure prevention, and financial literacy. It also functions as an intermediary, providing technical assistance, consulting, and community development lending.

Although NCALL has integrated a variety of community development services, Myer explained the importance of collaborating and entering into partnerships with other organizations, particularly concerning local, state, and federal policy. For example, NCALL is a founding member of the Delaware Housing Coalition, which advances the housing message to elected officials. NCALL also became a NeighborWorks organization; NeighborWorks provides its members with technical assistance and training. And with its extensive housing counseling team, NCALL developed a relationship with Habitat for Humanity International affiliates to provide counseling to prospective homebuyers. In addition, NCALL aligned with the Diamond State Community Land Trust to help devise new and innovative approaches to providing permanent, affordable housing.

Myer pointed out that third-party confirmation of an organization’s performance can help to build an organization’s reputation. NCALL’s loan fund is certified by the CDFI Fund and received a CDFI Assessment and Ratings System (CARS) rating. In addition, as a NeighborWorks organization, NCALL is rated annually and has program reviews every three years.

Formulas for Success

Grizel Ubarry, president of G. Ubarry, Inc., summed up the meeting by listing five characteristics that were common among the presenting organizations.

1.Collaboration. Successful organizations realize that they cannot do everything themselves. Regardless of their size, organizations need to work together to expand their capacity and to gain civic and governmental support. Collaboration can be effective among diverse organizations that have similar goals.

2.Risk taking. The leaders and people who run organizations must have a vision of what they want to accomplish and not be afraid to take steps to get there.

3.Capacity building. Organizations must consistently increase their skills and knowledge to keep moving forward, and they must learn from their experiences, including their missteps.

4.Leveraging. Successful organizations leverage their own resources and those of others. “By interconnecting programs and services, [organizations] meet multiple needs while seeking to be comprehensive, integrated, and holistic in their approach to finding solutions,” summed up Ubarry.

5.Adaptability to change. Successful groups know their marketplace and realize that in order to survive they need to change with the times. In order to be an agent of change, they must be a catalyst for change.

For more background on the organizations, their leaders, and their efforts, visit the main information page for this forum.

* The views expressed here are those of the author and do not necessarily represent the views of the Federal Reserve Bank of Philadelphia or the Federal Reserve System.
** See the National Network of Fiscal Sponsors.

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NEWARK — Elected officials, real estate developers and international investors will gather in the heart of downtown Newark today to break ground on the city’s most ambitious project since the Prudential Center, one Mayor Cory Booker says will transform the entire downtown.

Teachers Village is a nearly $150-million mixed-use development that will rise along four blocks of Halsey Street, between the Prudential Center and University Heights. Once completed, the site will have eight buildings, including three charter schools, a daycare center, more than 200 apartments for teachers and 70,000 square feet of street-level retail and restaurant space.

The project is largely being built through public financing, and funding for the first building — which includes two schools, a gymnasium and retail — closed last Friday.

“This is yet another game-changing project for the city of Newark,” Booker said, citing the Courtyard by Marriott hotel that is under construction downtown and Panasonic Corp., which will move its North American headquarters to the city next year. “And in a down economy like we’re experiencing globally, Newark is having its greatest economic development period in generations.”

The idea to incorporate teachers came after the developers realized many of the city’s current educators worked long hours and lived far away. By living closer, they would in turn would bring energy and ideas to the area, and possibly attract more business.

The project includes an unlikely cast of characters. Its lead developer, Ron Beit of New York-based RBH Group got his start in Newark nearly two decades ago managing a commercial building in the South Ward while he was in law school. Nicolas Berggruen, an early partner, is an investor with ventures in Europe and Asia and is known as the “homeless billionaire” because he lives in hotels. And world-renowned architect Richard Meier, who was born in Newark, created the project’s overall design.

“This area has tremendous potential, and this is the first phase to catalyze that neighborhood,” Beit said earlier this week. “We have an opportunity to build a community here for the 21st century that will serve as an economic engine for the city for decades to come.”

Teachers Village was conceived seven years ago when Newark rose to the top of a list of places to invest in real estate. Beit and several New York colleagues were interested in the city for its development potential and proximity to New York. Since then, everything the group has done has been with an eye toward the vision of Teachers Village. What starts today is part of a master plan that will include 15 million square feet of office buildings, retail, residential units and a hotel spanning 12 blocks.

“We always had a big vision,” Beit said. “The vision certainly got a lot larger over time.”

The project was awarded nearly $40 million in Urban Transit Hub tax credits from the state Economic Development Authority and allocated $60 million in federal New Markets tax credits for the school portion. Other public financing came from the city of Newark, the state Casino Reinvestment Development Authority, and federal Qualified School Construction Bonds, according to an EDA memo. Private financing came from Goldman Sachs, Prudential Financial Corp., TD Bank and New Jersey Community Capital, Beit said. In the early months of the recession, Beit said, Berggruen’s unwavering commitment to the project — Berggruen said he considers his investment “long-term” — brought everyone else together.

For Meier, who designed the Getty Center in Los Angeles, Teachers Village was as much a personal project as it was professional.

“I’ve always felt my roots were in Newark,” he said in an interview. “To be able to in some way contribute in an ongoing way to help to the city grow and change and prosper was important to me.”

The project extends for four blocks on both sides of Halsey Street and will rise primarily from surface parking lots, creating 500 construction and permanent jobs. The buildings range from 4 to 6 stories, with one renovated 9-story residential tower. The apartments will be pre-marketed to teachers and were designed with their salaries in mind, with rents ranging from $700 for a studio to $1,400 for two bedrooms.

One restaurant, Booker’s Diner — named not for the mayor but for educator Booker T. Washington — has already signed a lease, and Beit said a grocery store chain has also expressed interest. Retail is what will tie the buildings to the community and draw people to the neighborhood, Beit said.

“The single point we made when doing this master plan was we wanted as many people on the street, because that will ultimately be the success of this project and the long-term sustainability of it,” Beit said.

The first building is expected to open in May 2013 and the first residential units could open as soon as September 2013.

The Prudential Center and New Jersey Performing Arts Center have proven people will come to Newark after work and on weekends, and Christian Benedetto, a longtime real estate broker, said Teachers Village will breathe a “24/7 environment” into downtown.

“They have location, location, location, (and) they can draw tens of thousands of people from any side of their building,” Benedetto said. “It just further legitimizes the market.”

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NEWARK — Urban neighborhoods are getting help from JP Morgan Chase through a $4 million statewide revitalization grant announced yesterday.

Newark Mayor Cory Booker hosted officials from Chase Bank and New Jersey Community Capital, the grant recipient, to announce the funding which will focus on stabilizing Newark neighborhoods.

“We cannot talk about buildings going up in our downtown, we cannot talk about an innovative distribution process in Newark and forget about the most important thing in our city which is building neighborhoods, building neighbors, building homes, building communities,” Booker said.

The grant is meant to expand affordable housing in areas besieged by foreclosures. The announcement was made in Fairmount Heights, an area dotted with boarded-up windows and abandoned houses.

Wayne Meyer, president of New Jersey Community Capital, based in Trenton, said the money will go to building 1,250 new units of affordable housing in one- to four-family homes. It will also be used to buy mortgages from struggling homeowners so they can stay in their homes.

“To be honest, without this capital we couldn’t do it,” Meyer said. “It’s that significant”

Newark is among seven locales to split a $20 million grant from Chase, along with cities in Maryland, Florida, Illinois, California and Delaware.

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Chase Bank has given $4 million to New Jersey Community Capital to help provide affordable housing as part of its attempt to revitalize distressed urban neighborhoods, especially Newark.

The announcement was made in Newark’s Fairmount Heights neighborhood, which has benefited from the partnership between Chase and Community Capital.

“In neighborhoods across this great city, the partnerships between the city, civic-minded lenders, such as Chase and NJCC (Community Capital), and nonprofit and small, local developers, are creating hope and opportunity where before there was foreclosure and abandonment,” Newark Mayor Cory A. Booker said. “As I speak, over 250 homes in Newark’s neighborhoods are being renovated or newly constructed, with an investment of over $14 million of public funds, leveraging a total of over $41 million of neighborhood reinvestment, creating not just new affordable housing, but employment opportunities for Newark residents and business opportunities for local developers.

“In Fairmount Heights alone, a dozen small developers and contractors will repair over 50 homes, with a total development cost of $5.5 million,” the mayor said. “This grant from Chase will allow NJCC, the city and our development partners to continue with this important work.”

“Funds such as these, along with the critical resources provided by the U.S. Department of Housing and Urban Development (HUD), allow local community developers to make a real difference in distressed neighborhoods,” city Housing and Real Estate Director Mike Meyer said. “We are working hard to keep our neighborhoods strong for the residents who have invested and care for their homes, their blocks and their neighborhoods.”

In addition to the $4 million, Chase has invested more than $3.1 million in NJCC during the last seven years to enhance the organization’s effort to revitalize distressed neighborhoods.

“Access to credit is critical for nonprofit organizations that are working to restore and preserve affordable housing options,” Chase Community Relations Manager Elliott Lee said. “Chase is proud to continue to support NJCC’s lending efforts aimed at addressing affordable housing preservation to sustain homeownership.”

The site of the announcement was a home that was one of 47 vacant properties in Essex County, including 21 in Newark, which NJCC purchased at a discount from Chase in 2009. Newark resident Walter Jones was originally renting a unit on the top floor of the house with his family when Chase conveyed the property to NJCC. NJCC worked with the Jones family and HANDS Inc., a local nonprofit community builder, to keep the family in the home while it renovated the property floor by floor. Newark provided financial support to NJCC and HANDS to complete repairs to the building. By the time the renovation was complete, the Joneses were able to purchase the home, preserving two units of affordable housing.

“Moving from renters to owners is something we didn’t expect,” Jones said. “We have lived here for years, so we’re very happy that we were able to stay in place.”

The $4 million investment will allow NJCC to continue to support a number of similar programs and initiatives aimed at stabilizing at-risk communities, including:

Establishing the Neighborhood Prosperity Fund, a revolving loan fund designed to provide capital to support revitalization of foreclosed properties.

Establishing a joint venture with Enterprise Community Partners, Mercy Housing Inc., Housing Partnership Network and the National Community Stabilization Trust, in order to purchase pools of delinquent mortgages in high-impact areas and create an individualized action plan for each homeowner so they can stay in their home.

Investing in collaborations with community development organizations across the state, including Newark’s Strong Healthy Communities Initiative, the Essex County Community Land Trust, the New Jersey Community Progress Institute and the Ralph W. Voorhees Center for Civic Engagement.

“The development of much needed quality affordable housing is critically important to the well-being and health of individuals, families and communities,” Meyer said. “The opportunity to build a better life is a powerful economic lever that makes our communities diverse and vibrant places to live, work, and prosper. That is why we are so grateful to Chase for this generous $4 million grant investment. With these funds we will be able to greatly leverage additional resources and enhance our ability to advance affordable housing solutions of the magnitude and scale necessary to assist in the transformation of neighborhoods and communities.”

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NEWARK, NJ, Dec. 1, 2011 – Mayor Cory A. Booker, Members of the Newark Municipal Council, Deputy Mayor for Economic Development Adam Zipkin, Director of Housing and Real Estate Michael Meyer, Chase Community Relations Manager in New Jersey Elliott Lee, New Jersey Community Capital President Wayne Meyer, U.S. Department of Housing and Urban Development Newark Office Director Annemarie Uebbing, and other dignitaries announced today that Chase has awarded a $4 million grant to New Jersey Community Capital (NJCC) to help preserve affordable housing and expand the organization’s work in revitalizing New Jersey’s most distressed neighborhoods, with a major focus on Newark. The announcement was made at a property in the City’s West Ward Fairmount Heights neighborhood, which has benefitted from the partnership between Chase and NJCC. Also in attendance were Council Members-at-Large Mildred C. Crump and Carlos M. Gonzalez.

“In neighborhoods across this great City, the partnerships between the City, civic-minded lenders, such as Chase and NJCC, and nonprofit and small, local developers, are creating hope and opportunity where before there was foreclosure and abandonment. As I speak, over 250 homes in Newark’s neighborhoods are being renovated or newly constructed, with an investment of over $14 million of public funds, leveraging a total of over $41 million of neighborhood reinvestment, creating not just new affordable housing, but employment opportunities for Newark residents and business opportunities for local developers. In Fairmount Heights alone, a dozen small developers and contractors will repair over 50 homes, with a total development cost of $5.5 million. This grant from Chase will allow NJCC, the City and our development partners to continue with this important work,” said Mayor Booker.

“Funds such as these, along with the critical resources provided by the U.S. Department of Housing and Urban Development (HUD), allow local community developers to make a real difference in distressed neighborhoods. We are working hard to keep our neighborhoods strong for the residents who have invested and care for their homes, their blocks and their neighborhoods,” said Mike Meyer, Director of Housing and Real Estate for the City.

In addition to the $4 million grant, Chase has invested more than $3.1 million in NJCC during the last seven years to enhance the organization’s continued leadership in the revitalization of New Jersey’s distressed neighborhoods.

“Access to credit is critical for nonprofit organizations that are working to restore and preserve affordable housing options,” said Mr. Lee. “Chase is proud to continue to support NJCC’s lending efforts aimed at addressing affordable housing preservation to sustain homeownership.”

Newark was selected as the site of the announcement due to the innovative and holistic approach the City and its community partners have taken since the onset of the mortgage and foreclosure crisis. The site of the announcement is a home that was one of 47 vacant properties in Essex County – including 21 in Newark – which NJCC purchased at a discount from Chase in 2009. Newark resident Walter Jones was originally renting a unit on the top floor of the house with his family when Chase conveyed the property to NJCC. NJCC worked with the Jones family and HANDS, Inc., a local nonprofit community builder, to keep the family in the home while it renovated the property floor by floor. The City of Newark provided financial support to NJCC and HANDS to complete repairs to the building. By the time the renovation was complete, the Joneses were able to purchase the home, preserving two units of affordable housing.

“Moving from renters to owners is something we didn’t expect,” said Mr. Jones. “We have lived here for years, so we’re very happy that we were able to stay in place. All thanks to NJCC, HANDS and Newark.”

The $4 million investment will allow NJCC to continue to support a number of similar programs and initiatives aimed at stabilizing New Jersey’s most at-risk communities, including:
• Establishing the Neighborhood Prosperity Fund, a permanent revolving loan fund that will provide accessible and flexible capital to support efficient revitalization of foreclosed properties.
• Establishing a joint venture with Enterprise Community Partners, Mercy Housing, Inc., Housing Partnership Network and the National Community Stabilization Trust, in order to purchase pools of delinquent mortgages in high-impact areas and create an individualized action plan for each homeowner so they can stay in their home.
• Investing in local-level collaborations with community development organizations across the state, including Newark’s Strong Healthy Communities Initiative, the Essex County Community Land Trust, the New Jersey Community Progress Institute and the Ralph W. Voorhees Center for Civic Engagement.

“The development of much needed quality affordable housing is critically important to the well-being and health of individuals, families and communities,” said NJCC President Meyer. “The opportunity to build a better life is a powerful economic lever that makes our communities diverse and vibrant places to live, work, and prosper. That is why we are so grateful to Chase for this generous $4 million grant investment. With these funds we will be able to greatly leverage additional resources and enhance our ability to advance affordable housing solutions of the magnitude and scale necessary to assist in the transformation of neighborhoods and communities.”

“Project Rebuild, which is part of the President’s American Jobs Act, will put Americans back to work immediately by creating 200,000 jobs and continuing to successfully change neighborhoods one block at a time by revitalizing properties that were once abandoned,” commented HUD Regional Administrator Adolfo Carrión, in a statement. “Neighborhood Stabilization efforts in other parts of the country have succeeded in increasing property values. We thank NJCC and JPMorgan Chase for their commitment to help revitalize our communities.”

For more information about any City of Newark program or policy, contact the Non-Emergency Call Center at (973) 733-4311.

Contacts:
Press Information Office – (973) 733-8004
E-mail: Pressoffice@ci.newark.nj.us

Chase: Mike Fusco – (212) 270-5089
E-mail: Michael.f.fusco@chase.com

New Jersey Community Capital: Peter Grof – (609) 989-7766, ext. 406
E-mail: pgrof@njclf.com

About Chase
Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading global financial services firm with assets of $2.3 trillion and operations in more than 60 countries. In New Jersey, Chase serves consumers and small businesses through 226 bank branches and more than 400 ATMs. The firm has more than 6,000 employees working across the state.

About New Jersey Community Capital
NJCC is a 501(c) (3) mission-driven lender based in Trenton that transforms at-risk communities through strategic investments of capital and knowledge. NJCC invests in affordable housing, community facilities, and economic development ventures that strengthen neighborhoods, improve education, and increase jobs, ultimately providing greater opportunities for the low-income residents in these communities. For more information on NJCC, visit www.newjerseycommunitycapital.org

About the City of Newark, New Jersey
Newark, commonly referred to as Brick City, is the third oldest city in the United States and the largest in New Jersey, with a population of more than 280,000 people. Newark sits on one of the nation’s largest transportation super-structures including an international airport, major commuter and freight rail lines, major highway intersections and the busiest seaport on the east coast.

With a new Administration as of July 2006, Newark continues to see signs of a strong revival. Its population showed growth in the most recent census. Its six major colleges and universities are further expanding their presence. The rate of production of affordable housing has doubled, and new businesses are moving in. There is still much work to be done but Newark is on its way to achieving its mission: to set a national standard for urban transformation.

For more information on the City of Newark, please visit our website at www.ci.newark.nj.us

Follow us on Twitter: www.twitter.com/cityofnewarknj

In the quarter-century Walter Jones and his wife Rehertha have lived at their South 11th Street home, they’ve seen “8 or 10 different landlords” come and go, Jones said this morning.

But thanks to a partnership among business, the city and nonprofit groups, the Joneses have gone from being tenants to owners, part of an ongoing effort to rehabilitate New Jersey neighborhoods pocked with abandoned homes.

“It feels good” to be making mortgage payments instead of rent, said Jones, 71, a technician for a Wayne vending machine company.

City officials and representatives of several community groups gathered at the Joneses’ newly renovated two-story house to announce a $4 million donation by JPMorgan Chase bank to New Jersey Community Capital, a nonprofit working to create affordable housing in Newark and in other cities across the state. With today’s donation, Chase has provided NJCC a total of $8 million towards neighborhood rehabilitation, said Elliot Lee, a Chase vice president in charge of community relations.

“At a time when banks are being vilified, this is a powerful statement,” Mayor Cory Booker, who was fresh from a meeting yesterday with First Lady Michelle Obama, said of the Chase donation. “I feel a profound sense of gratitude.”

NJCC raises funds from the private sector and other sources, then works with local community groups like the Newark-based Brick City Development Corporation to create housing, build schools, provide capital to minority businesses and other initiatives in the state’s struggling neighborhoods.

NJCC also helps people like the Joneses become owners of abandoned or foreclosed homes that might otherwise sink into decay. Their new home was previously owned by Washington Mutual bank before being acquired by Chase and then, ultimately, by the Jones family.

Preventing one home from becoming an eyesore boosts a neighborhood overall, said Vivian Cox Fraser of the Urban League of Essex County.

A vacant home can become a magnet for “illegal activities”, bringing down the property value of neighboring homes, said Cox Fraser. The Fairmount neighborhood where the Joneses live suffered from a “very high rate of foreclosure,” but plans are in the works for a total of 200 new homes in the area, she added.

Today’s donation will help NJCC create a total of 1,250 housing units over the next five years, many in Newark, said Wayne T. Meyer, the organization’s president. The Chase donation is especially important given the current economic downturn, which resulted in thousands of homes being vacated by owners unable to afford their mortgages, he added.

“We’re seeing nearly 30 years of community development work being threatened” by the housing crisis, Meyer said.

But he also added that NJCC-sponsored residential development is much more stable than that seen at the height of the housing boom a few years ago.

“The foreclosure rate for our housing is negligible compared to the larger market,” Meyer said. “We still believe this is a good model for the community.”

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“Schools have always played a vital role in a community’s well-being,” said Joe Palazzolo, NJCC’s Team Leader for Education and Early Care. “Charter schools provide a unique opportunity to promote innovative, quality education while at the same time serving as community-based institutions providing both stabilization and positive change to their neighborhoods. New Jersey Community Capital’s extensive work in this area speaks to our strong belief in supporting charter schools that serve their surrounding communities and share our mission.”

Hoboken Charter School purchased the former Academy of the Sacred Heart building in Hoboken, New Jersey. Image courtesy of the Friends of Hoboken Charter School.

The Hoboken Charter School is a prime example of a charter school that is inspiring children and enhancing the lives of residents in the community. Ranked as one of the top charter schools in the nation since it opened its doors in 1998, Hoboken Charter School serves a high percentage of special needs and low-income students in grades K-12 from the City of Hoboken and surrounding districts. The school provides these children the opportunity to learn in a supportive environment where rigorous academics, arts literacy, and personal and civic growth are fostered. This formula for achievement is yielding positive results, with the school consistently exceeding State standards and repeatedly earning national recognition for its student achievement, innovation, and accountability.

NJCC provided the Friends of Hoboken Charter School with a $3.9 million acquisition loan which enabled them to secure ownership of a former Catholic High School site that the school had been renting since last year. Prior to occupying this building, the school rented space from a variety of organizations in different locations. NJCC’s financing gave Hoboken Charter School the capacity to preserve this building’s rich architectural structure while creating a state-of-the-art learning environment that supports its high standards for academic excellence and personal responsibility.

“Thanks to New Jersey Community Capital’s financial backing, the Hoboken Charter School finally has the permanent home we always dreamed could be ours,” said Helen A. Cunning, former Hoboken councilwoman and past president of the Hoboken Charter School Board. “This purchase further solidifies Hoboken Charter School as a leader in progressive education and this beautiful, architecturally impressive site mirrors the academic achievements happening in our classrooms. We are most grateful to NJCC and, especially, Joe Palazzolo for his outstanding guidance and support.”

Despite NJCC’s commitment to this project, this transaction would not have been possible without the support of Opportunity Finance Network (OFN). By purchasing a 48.8% participation in the loan, OFN provided NJCC with the additional capital needed to make this loan a reality.

“OFN is glad to have participated in this loan with our long-time partner New Jersey Community Capital,” said Wanda Speight, Executive Vice President of Financial Services at OFN. “We are always looking for new ways to support the work of our Members. OFN is especially pleased to be able to support the community through helping finance the Hoboken Charter School, which provides another area school option to local parents and great educational opportunities to so many deserving students.”

Hoboken Charter School’s new permanent facility complements the school’s service learning and community-based curriculum, which is central to its educational philosophy. The school encourages learning beyond the walls of the classroom by engaging students in civic projects in the community. Now with a permanent home, Hoboken Charter is an anchor in the community, with its students encouraged to make even deeper and more meaningful connections to the surrounding neighborhoods. It is this bridge between school and community that makes this charter school such a commanding influence for lasting change.

“Since New Jersey Community Capital began lending to charter schools seven years ago, the organization has closed or participated in more than $47 million in direct charter school financing, leveraging over $123 million in development costs for 23 charter school campuses across New Jersey,” continued Palazzolo. “We are honored to play a leading role in providing nearly 6,650 New Jersey families access to exceptional educational curricula like the one provided by the Hoboken Charter School. We work hard to identify charter school partners who will play a key role in our holistic, sustainable community development efforts.”

Don DePascale, Educational Consultant for Hoboken Charter School, added, “Closing this transaction truly was the Miracle on Washington Street!”

“Greg’s deep understanding of the community development field and broad policy expertise make him the right person to spearhead New Jersey Community Capital’s operations, while helping strengthen us as the premier statewide community development financial institution in New Jersey,” said Wayne T. Meyer, president of NJCC. “The timing of his arrival couldn’t be better with our pending move to New Brunswick, the adoption of our strategic plan, and our renewed commitment to building the organization’s infrastructure. His oversight on these critical initiatives will help us evolve and provide an even greater array of financing and technical assistance services for struggling neighborhoods in New Jersey.”

Greg has had a distinguished career in the public and nonprofit sectors, focusing primarily on community economic development and urban policy and politics. Most recently, he served as a budget specialist for the State of New Jersey’s Office of Management and Budget (OMB), where he worked on a variety of management reform projects that spanned numerous State agencies, while helping implement the State’s new performance management initiative. While at OMB, Greg also served as an adjunct lecturer for the Edward J. Bloustein School of Planning and Public Policy at Rutgers University. Earlier in his career, Greg served in the Office of Budget Operations and Review at the New York City Board of Education.

Greg earned a Ph.D. in Public Affairs and an M.P.A. in Domestic Policy from Princeton University’s Woodrow Wilson School. In addition, as a Rotary Foundation Scholar, Greg earned a Graduate Diploma in International Law from the Australian National University, and both a Bachelor’s degree cum laude and a Master’s degree from Harvard University. He is an accomplished scholar, having published a number of prize-winning articles and papers on community economic development in professional and academic journals and for conference proceedings.

In conclusion, Wayne stated that, “New Jersey Community Capital is fortunate to have a seasoned professional like Greg on board. His wealth of invaluable knowledge, solid management acumen, and undeniable passion for community development will provide the direction we need to continue to evolve and meet the changing needs of underserved communities.”

Pictured: Daniel Kravetz, Julie Thibault, Peter Schaeffing

Committed to fostering future generations of community development leaders, New Jersey Community Capital has long supported the Wachovia/NJDCA Housing and Community Development Scholars Program. The program matched talented summer interns with community development institutions throughout the state. When the program lost its funding this year, NJCC chose this summer to directly hire three Summer Fellows in the areas of lending, real estate, and resource development. We did so in order to do our part to sustain opportunities for aspiring local community developers. This continued commitment paid off handsomely, as each Summer Fellow has made significant contributions to the success of the organization:

• Peter Schaeffing came to NJCC from the University of South Carolina, where his studies included an honors thesis on the performance of CDFI-certified banks in the recession. Peter’s background prepared him to immediately begin helping to underwrite NJCC’s loans and to play a critical role in its application for a new allocation of New Markets Tax Credits.
• Julie Thibault joined NJCC’s real estate subsidiary, Community Asset Preservation Corporation. Julie is a master’s candidate in planning at Rutgers University’s Edward J. Bloustein School of Planning and Public Policy, after running her own dance studio for several years. Julie performed a variety of tasks to support CAPC, from developing its website to working with its wide array of partners and coordinating its First Look REO Acquisition Program.
• Daniel Kravetz is a dual-degree master’s candidate in planning and public policy, also at the Bloustein School at Rutgers. Among other things, Dan assisted NJCC’s resource development team in writing grant proposals and funding requests, helping raise $125,000 to date. Dan also refined our social media platform.

NJCC entrusted our Summer Fellows with critical organizational tasks and remains dedicated to supporting their progress as future practitioners. Thank you, Peter, Julie, and Dan, for your dedication and effort, and for using your incredible skills and immense energy to help improve conditions in communities throughout New Jersey.

NJCC now is actively working with its partners to fill the void created by the elimination of the Housing Scholars program. The group is crafting a proposed new statewide community development internship program. Still in its conceptual stages, this program would place interns in community organizations around the state while requiring the interns to also work together on a research/advocacy effort to enhance community revitalization in New Jersey. We remain adamant in supporting efforts to help train and nurture the next generation of community development leaders.