newjerseynewsroom.com

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."

—TOM HESTER SR., NEWJERSEYNEWSROOM.COM