New York’s “Community Restoration Fund” will Protect Hundreds of NY Families from Displacement
(New Brunswick, NJ) November 16, 2017 – New Jersey Community Capital (NJCC) has partnered with New York Homes and Community Renewal (HCR), a New York agency dedicated to protecting affordable housing and increasing home ownership, to implement the New York Community Restoration Fund (CRF), modeled on NJCC’s innovative ReStart foreclosure prevention program.
NJCC launched the ReStart model for home preservation in 2012 in response to the foreclosure crisis gripping the nation. That year, NJCC purchased 261 troubled mortgages split between the Newark, NJ and Tampa, FL regions through an FHA auction making it the first nonprofit to place a winning bid. Since then, NJCC has won 16 pools totaling 1,713 delinquent mortgages.
“NJCC uses principal reduction as its primary modification tool, which is designed for borrowers to obtain a modified mortgage that fits their financial circumstances and aligns with the value of their property so they can actually afford to stay in their homes,” said Scott Fergus, Chief Executive Officer for National Community Capital (NCC), the NJCC entity that administers the ReStart program model. “By partnering with local counseling agencies, we supplement these mortgage modifications with one-on-one financial counseling to ensure homeowners can maintain ownership. In situations where a home in the pool is already vacant, NJCC utilizes local partnerships to rehabilitate the property into affordable housing.”
In August, NJCC and the State of New York Mortgage Agency (SONYMA) purchased a pool of 398 nonperforming mortgages in 33 New York counties. NJCC provided training to local nonprofits and government agencies to administer the CRF initiative. This training will result in a consortium of nonprofits and government agencies in New York with the capacity, infrastructure, and knowledge to replicate NJCC’s ReStart model, laying the foundation for similar consortiums in other states.
“We are thrilled to bring our expertise to our neighbors in New York, and guide them through the implementation of a program to keep families in their home,” said NJCC President Wayne T. Meyer. “Everyone deserves a place to call home, and we are excited at the opportunity to help homeowners remain in theirs.”
About New Jersey Community Capital
New Jersey Community Capital is a nonprofit community development financial institution (CDFI) that provides innovative financing and technical assistance to support the preservation and development of affordable housing and sustainable community development ventures that increase jobs, improve education, and strengthen neighborhoods. Founded in 1987, NJCC has invested over $630 million in New Jersey communities, resulting in over 9,700 housing units, 7,300 early care slots, 16,500 education seats, and 9,600 jobs. For more information, visit: www.newjerseycommunitycapital.org.