Neighborhood Prosperity Fund

The Neighborhood Prosperity Fund (NPF) is a permanent revolving loan fund of up to $50 million that NJCC uses to provide flexible, long-term lending capital to enable the completion of high-impact neighborhood stabilization projects in distressed communities across New Jersey.

Increasingly, municipal leaders and affordable housing developers in New Jersey’s low-income areas are seeking to complete large-scale projects to meet growing needs for affordable rental housing and for broad-based neighborhood revitalization.  Their approaches range from the repurposing of scattered single-family housing to the construction or redevelopment of larger multi-family units.  Such strategies often require flexible long-term capital that many lenders are reluctant to provide.

NJCC created the Neighborhood Prosperity Fund (NPF) to fill this gap.  NPF is a $50 million permanent revolving loan fund that NJCC is using to offer flexible 5-to-7 year loans for high-impact affordable housing developments across New Jersey.  NJCC’s target geographies include its more traditional areas of service, as well as new areas in which NJCC staff is also providing strategic guidance on abandoned property mitigation.

NPF’s size, blend of capital grants and investments, and specific dedication to meeting long-term capital needs allow NJCC to expand its provision of the following types of loans:

  • Affordable lines of credit to high-capacity community builders
  • Mini-permanent loans to support multi-family and scattered-site single family affordable rental housing (which is in increasingly high demand) through completion and lease-up
  • Other affordable and patient capital to fund high-impact neighborhood stabilization efforts.

NJCC is continually expanding NPF’s pipeline in order to fund projects that typically cannot access flexible long-term funding from other financial institutions.  NPF also will support the Housing Work Plan of the Strong Healthy Communities Initiative (SHCI), a Living Cities project to holistically improve the health outcomes of children in four low-income communities in Newark.  In all, NPF is expected to finance 750 affordable housing units by 2017, including 175 in SHCI target areas.

Program Overview

  • Flexible, low-cost capital fund to support high impact affordable housing projects
  • $3.6 Million deployed
  • 119 housing units created or preserved