New Jersey Community Capital expands to purchase 169 non-performing loans and convert vacant properties into affordable housing


originally published: 06/09/2022

(NEW BRUNSWICK, NJ) — Community Capital of New Jersey (NJCC), the state of New Jersey’s largest community development financial institution (CDFI), announced the purchase of 169 non-performing home equity conversion mortgages (HECM) from the U.S. Department of Housing and Housing. urban development (HUD). This purchase marks the first such transaction to be completed on this scale with collaborating nonprofits.

“Never before has a transaction of this magnitude been executed to convert pending foreclosures into affordable housing across the country. performers (NPL),” said Bernel Hall, President and CEO of New Jersey Community Capital. “The participation of nonprofits in transactions like this is essential to creating vibrant and equitable communities, especially as we face a national housing crisis. We are grateful for the collaboration with our partners and look forward to working with more non-profit and for-profit institutions aligned with our mission to create quality affordable housing across the country.

This transaction follows the September 2021 decision of the Biden-Harris administration announcement that more HUD-owned loans should be sold to nonprofit and community organizations committed to creating positive community outcomes. HUD then offered priority bidding for eligible nonprofit organizations and state and local government units on up to 50% of loans in its sale of vacant HUD-held tickets (HVLS 2022-1) at the fall of this year.

Loans are secured by vacant properties of one to four units. The partners will seek to take title to the properties and sell them to non-profit affordable housing developers or directly to low-to-moderate income (LMI) homeowners. Most properties are expected to be sold to local affiliates or members of partner nonprofits.

The PNPs included in this transaction have an outstanding loan balance of $37.1 million and are secured by vacant properties in 32 states. The five states with the largest concentrations of properties are Michigan (16 properties), Missouri (14 properties), New York (16 properties), Texas (18 properties), and Wisconsin (23 properties). While the partnership prioritizes property sales to local affiliates or members, it will also welcome partnership opportunities with other nonprofit organizations in the communities where the properties are located.

Advertise with New Jersey Stage for $50-$100 per month, click here for more info

New Jersey Community Capital (NJCC) is a nonprofit Community Development Financial Institution (CDFI) that provides an innovative toolkit of financial products, programs, and services to advance equity and opportunity in underserved communities. The NJCC supports the preservation and development of affordable housing and sustainable community development enterprises that increase jobs, improve education, and strengthen neighborhoods to ensure communities can thrive.

Advertise with New Jersey Stage for $50-$100 per month, click here for more info

Comments are closed.