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C O M M U N I T Y REINVESTMENT

> CONTINUED

F R O M PA G E 1

A t the heart of the challenge is the

forum
COMMUNITY REINVESTMENT FORUM

SPRING
2001
PUBLISHED BY T H E F E D E R A L R E S E R V E B A N K O F C L E V E L A N D

BEYOND SECTION 8

Neighborhood Capital Corporation
Will Help Organizations to Preserve
Affordable Housing

pending expiration of a large percentage of
government rent-subsidy contracts that offer
no expectation of renewal. In the 1970s, the
federal government and private owners entered
into these contracts to create affordable-housing
projects. In return, the government made a
25- to 30-year commitment to provide monthly
affordable market and are

Neighborhood Reinvestment’s

gap for them.” NCC’s financing

units in the affordable-housing

converted to market rate.”

NeighborWorks network of

accounts for up to 25 percent

market is to purchase them.

The National Housing Trust

approximately 200 nonprofit

of the project costs during the

A Cleveland-based nonprofit

reports there are currently

development organizations

predevelopment and acquisition

financial intermediary, Neigh-

640,000 units of affordable

around the country.

phase of project development

borhood Capital Corporation

multifamily housing that may

(NCC), was established in early

be in jeopardy of market-rate

2000 to support the develop-

conversion. NCC plans to

finance this kind of activity on

ment initiatives of organizations

mitigate this loss by making

the front end,” says Hudecek,

that are preserving and creating

loans to the initiative’s 43

“because often the commit-

NCC secured a grant from

affordable multifamily housing

member organizations for the

ments for permanent financing

Neighborhood Reinvestment

opportunities. These organiza-

purchase of properties that,

are not yet in place.” He adds,

for $3.0 million in initial capital

tions are members of the three-

in some cases, are also being

“In those instances where a

and operating support over

year-old NeighborWorks

considered for purchase by

bank is willing to consider this

three years. It seeks to leverage

Multifamily Initiative, a program

developers working at market-

type of financing, typically they

this capital through a fund-

established by the federally

rate prices. The Multifamily

would be likely to finance only

raising campaign to attract

chartered Neighborhood

Initiative organizations are

60 percent to 80 percent of the

additional dollars in the form of

Reinvestment Corporation.

part of

actual purchase costs, leaving

grants, equity investments, and

the organization with a gap

program-related investments.

One way to keep these

Affordable housing faces some formidable challenges in the next decade, the outcomes of which
will determine the fate of thousands of affordable-housing units and, ultimately, the well-being of
the people who depend on them. In CR Forum’s Spring 2000 issue, we covered a problem that
still looms large on the housing-market horizon: keeping almost 800,000 apartments, including
single- and multifamily dwellings, within the affordable-housing market.
C O N T I N U E D O N N E X T PA G E

Multifamily housing refers to
traditional rental housing,
mutual housing, or other forms
of long-term, jointly owned
housing.
According to Robert
Hudecek, NCC’s executive
director, “There will be a crisis

AN EXCHANGE OF COMMUNITY DEVELOPMENT ISSUES AND IDEAS

in the housing market if multiRegulatory Update

CRA “Sunshine”
Disclosure and
Reporting

In My Opinion

Of Interest

Taking a
Closer Look at
Housing Challenges

rent subsidies for tenants. With the expiration
of these contracts, affordable real estate assets
will transfer, exposing them to market-rate
conversion. The primary vehicle for the rentsubsidy dollars is the Section 8 program
administered by the Department of Housing
and Urban Development.

family units are lost from the

“

and will subordinate to first-lien

anks are hesitant to

in financing to complete the
purchase. This is
where NCC steps in,
to bridge that

financing from the conventional
marketplace.
In its first year of operation,

NCC is also collaborating with
nationally recognized organizations such as the National
Housing Trust, a partner in
participating loans and mutual
support services.
C O N T I N U E D O N PA G E 7

C O M M U N I T Y REINVESTMENT

> CONTINUED

F R O M PA G E 1

A t the heart of the challenge is the

forum
COMMUNITY REINVESTMENT FORUM

SPRING
2001
PUBLISHED BY T H E F E D E R A L R E S E R V E B A N K O F C L E V E L A N D

BEYOND SECTION 8

Neighborhood Capital Corporation
Will Help Organizations to Preserve
Affordable Housing

Neighborhood Reinvestment’s

gap for them.” NCC’s financing

units in the affordable-housing

converted to market rate.”

NeighborWorks network of

accounts for up to 25 percent

market is to purchase them.

The National Housing Trust

approximately 200 nonprofit

of the project costs during the

A Cleveland-based nonprofit

reports there are currently

development organizations

predevelopment and acquisition

financial intermediary, Neigh-

640,000 units of affordable

around the country.

phase of project development

borhood Capital Corporation

multifamily housing that may

(NCC), was established in early

be in jeopardy of market-rate

2000 to support the develop-

conversion. NCC plans to

finance this kind of activity on

ment initiatives of organizations

mitigate this loss by making

the front end,” says Hudecek,

that are preserving and creating

loans to the initiative’s 43

“because often the commit-

NCC secured a grant from

affordable multifamily housing

member organizations for the

ments for permanent financing

Neighborhood Reinvestment

opportunities. These organiza-

purchase of properties that,

are not yet in place.” He adds,

for $3.0 million in initial capital

tions are members of the three-

in some cases, are also being

“In those instances where a

and operating support over

year-old NeighborWorks

considered for purchase by

bank is willing to consider this

three years. It seeks to leverage

Multifamily Initiative, a program

developers working at market-

type of financing, typically they

this capital through a fund-

established by the federally

rate prices. The Multifamily

would be likely to finance only

raising campaign to attract

chartered Neighborhood

Initiative organizations are

60 percent to 80 percent of the

additional dollars in the form of

Reinvestment Corporation.

part of

actual purchase costs, leaving

grants, equity investments, and

the organization with a gap

program-related investments.

One way to keep these

AN EXCHANGE OF COMMUNITY DEVELOPMENT ISSUES AND IDEAS

in the housing market if multiRegulatory Update

CRA “Sunshine”
Disclosure and
Reporting

In My Opinion

Of Interest

Taking a
Closer Look at
Housing Challenges

family units are lost from the

“

and will subordinate to first-lien

anks are hesitant to

in financing to complete the
purchase. This is
where NCC steps in,
to bridge that

financing from the conventional
marketplace.
In its first year of operation,

NCC is also collaborating with
nationally recognized organizations such as the National
Housing Trust, a partner in
participating loans and mutual
support services.
C O N T I N U E D O N PA G E 7

regulatory
COMMUNITY REINVESTMENT FORUM

update

CRA “Sunshine”
Disclosure and Reporting
by Barbara Kuntz
COMMUNITY AFFAIRS EXAMINER

Disclosures to the Public

The Federal Deposit Insurance Act requires public disclosure and annual reporting

Insured depository institutions or their

of certain written Community Reinvestment Act (CRA) agreements between insured

affiliates and NGEPs must make the

depository institutions or their affiliates and nongovernmental entities or persons
(NGEPs), such as nonprofit organizations. These requirements—which became
effective April 1, 2001—are known as the CRA “Sunshine” provision because they
are designed to shed light on CRA-related agreements.
The Sunshine provision provides public disclosure of CRA-related agreements to
allow the public and the appropriate agencies to monitor how resources are being used.
Information must be disclosed both to the public and to each financial institution’s
regulatory agency.
The CRA Sunshine requirements apply only to agreements made in fulfillment of the
act. They apply to funds or other resources of insured depository institutions or affiliates
with an aggregate value of more than $10,000 in any calendar year, or to loans with an

following information available to the
public upon request:
Names and addresses of the parties
to the agreement
■ Amount of any payment, fee, loan,
or other consideration to be made
or provided by any party to the
agreement
■ How the funds or other resources
provided under the agreement are
to be used
■ Term of the agreement
(if applicable)
■ Other information that the relevant
supervisory agency determines is
not properly exempt from public
disclosure.
■

Disclosures to the
Regulatory Agencies

Option 1: Quarterly Reporting

Option 2: Reporting by Request

Annual Reporting

Insured depository institutions and

Other confidential information that is

Within 60 days of the end of each

If the insured depository institution and

The CRA Sunshine provision also requires

their affiliates must report the following

quarter, institutions may elect to file

its affiliates choose not to file quarterly,

each NGEP, insured depository institution,

information to the supervisory agency:

with the supervisory agency (1) a copy

the supervisory agency may request this

or affiliate to report at least annually

of each agreement entered into during

information, which the institution must

on its disbursements, receipt, and use

the calendar quarter, or (2) a listing of

provide within seven calendar days of

of funds under the covered agreement.

all agreements entered into during the

receiving the request. If an agreement

Specifically, the NGEP must provide an

calendar quarter. If a listing is provided,

has expired, the agency may request a

account of how the funds were used,

the following information must be

listing of that agreement up to 36 months

as well as the following information:

included in the disclosure:

after termination. This provision allows

not available to the public must be
provided to the supervisory agencies,
such as new and innovative programs,
underwriting standards, competitive
pricing information, or personal data
that would otherwise be protected under
applicable privacy rules. Insured depository institutions and their affiliates have
two options for disclosing information
to the supervisory agencies.

Name and address of each party to
the agreement
■ Date the agreement was entered into
■ Estimated total value of all payments,
fees, loans, and other considerations
to be provided by the institution or
any affiliate under the agreement
■ Date the agreement terminates.
■

the supervisory agency to review the
terms of the agreement, in the event that
questions are brought to its attention
from the public.

Name and mailing address of
the NGEP
■ Names of the parties to the
agreement and the date it was
entered into
■ Amount of funds received by the
NGEP under the agreement during
the fiscal year.
■

Aggregate amount of payments,
fees, and loans provided and/or
received by the institution from any
other party during the fiscal year
■ Terms and conditions of any
payment, fee, or loan provided or
received
■ Aggregate amount and number of
loans, investments, and services
provided to any NGEP that is not
a party to the agreement.
■

aggregate principal value of more than $50,000 in any calendar year, and entered into
by an insured depository institution or affiliate and an NGEP.

For more information about the CRA Sunshine provision, contact any of the federal banking regulatory agencies, or visit
http://www.federalreserve.gov/boarddocs/press/boardacts/2000/200012214/default.htm. The Federal Reserve Bank of Cleveland
will host training sessions on the regulation in the following locations:
April 26 Erie, Pennsylvania

May 2 Dayton, Ohio

May 8 Ashland, Kentucky

April 27 Manchester, Pennsylvania

May 3 Cincinnati, Ohio

May 15 Cleveland, Ohio

April 30 Wheeling, West Virginia

May 7 Lexington, Kentucky

For more information or to register, call Jacqueline King in the Community Affairs Office at 216/579-2903.

regulatory
COMMUNITY REINVESTMENT FORUM

update

CRA “Sunshine”
Disclosure and Reporting
by Barbara Kuntz
COMMUNITY AFFAIRS EXAMINER

Disclosures to the Public

The Federal Deposit Insurance Act requires public disclosure and annual reporting

Insured depository institutions or their

of certain written Community Reinvestment Act (CRA) agreements between insured

affiliates and NGEPs must make the

Disclosures to the
Regulatory Agencies

Option 1: Quarterly Reporting

Option 2: Reporting by Request

Annual Reporting

Insured depository institutions and

Other confidential information that is

Within 60 days of the end of each

If the insured depository institution and

The CRA Sunshine provision also requires

their affiliates must report the following

quarter, institutions may elect to file

its affiliates choose not to file quarterly,

each NGEP, insured depository institution,

information to the supervisory agency:

with the supervisory agency (1) a copy

the supervisory agency may request this

or affiliate to report at least annually

of each agreement entered into during

information, which the institution must

on its disbursements, receipt, and use

the calendar quarter, or (2) a listing of

provide within seven calendar days of

of funds under the covered agreement.

all agreements entered into during the

receiving the request. If an agreement

Specifically, the NGEP must provide an

calendar quarter. If a listing is provided,

has expired, the agency may request a

account of how the funds were used,

the following information must be

listing of that agreement up to 36 months

as well as the following information:

included in the disclosure:

after termination. This provision allows

the supervisory agency to review the
terms of the agreement, in the event that
questions are brought to its attention
from the public.

aggregate principal value of more than $50,000 in any calendar year, and entered into
by an insured depository institution or affiliate and an NGEP.

May 2 Dayton, Ohio

May 8 Ashland, Kentucky

April 27 Manchester, Pennsylvania

May 3 Cincinnati, Ohio

May 15 Cleveland, Ohio

April 30 Wheeling, West Virginia

May 7 Lexington, Kentucky

For more information or to register, call Jacqueline King in the Community Affairs Office at 216/579-2903.

of interest

The Federal Reserve Banks of Atlanta,
Cleveland, and Richmond, and the
Appalachian Regional Commission will
host a one-day conference on workforce
development in rural Appalachia on
April 26, 2001, at the MeadowView
Conference Resort and Convention Center
in Kingsport, Tennessee. The event will
highlight winning strategies for workforce development and sustainable
community building. Participants will
gain knowledge and hands-on experience

from other community development
practitioners by working on case studies
to address community development
issues.
David H. Ciscel, professor of economics
at the Fogelman School of Business and
Economics, University of Memphis, will
deliver the keynote address.
For information or to register, contact
Bonnie Falls, Federal Reserve Bank of
Richmond, at 804/697-8114, or visit
http://www.rich.frb.org/cao/conf.html.

opinion

Taking a Closer Look
at Housing Challenges:
A Mayor’s View
DAVID J. BERGER
Mayor, City of Lima, Ohio

David J. Berger has served as the mayor of Lima, Ohio, since
1989. Under his administration, the city launched its Department
of Community Development to focus on neighborhood revitalization and began to facilitate community dialogues on race and
diversity, creating study circles to encourage positive individual

Fourth District
Represented on
Fed Consumer
Advisory Council
The Federal Reserve Board of Governors
has appointed J. Patrick Liddy, vice
president and director of compliance for
Fifth Third Bancorp in Cincinnati, Ohio,
to a three-year term on its Consumer
Advisory Council. The Council, which
meets three times a year in Washington,
D.C., advises the Board of Governors on
the exercise of its responsibilities under
the Consumer Credit Protection Act and
other matters in the area of consumer
financial services.

Liddy is responsible for bank and
trust compliance for Fifth Third’s Ohio,
Kentucky, Indiana, and Florida banks, as
well as its Arizona thrift. In this capacity,
he reconciles bank practices with federal
and state laws and regulations, in addition to addressing compliance training,
consumer issues, and regulatory simplification. Liddy is an active member of
the Cincinnati-area United Way and the
Fine Arts Fund of Cincinnati.
For more information on the Federal
Reserve’s Consumer Advisory Council,
contact Greg Bell, Banking Supervisor,
at 216/579-2955.

and community change. Nearly 30 projects involving more than
$50 million in investments have helped to revitalize downtown
Lima. Berger, a Mansfield, Ohio, native, has worked in the Lima
community for nearly 25 years; prior to his election as mayor,
he was the executive director of Rehab Agency, a nationally
recognized organization that trains criminal offenders to renovate
single-family housing.

In December 2000, the Federal Reserve
Bank of Cleveland presented A Profile
of Lima, Ohio, to 50 people representing
community lenders, neighborhood associations, social service agencies, and city
and county leaders.
Prepared by the Community Affairs
staff of the Federal Reserve Bank, the
37-page profile provides a demographic
and economic analysis of the Lima
metropolitan area, with a particular
emphasis on our city’s home mortgage
lending activity. Although some analysis
of Home Mortgage Disclosure Act data
has appeared in past issues of the City of
Lima’s Housing Consortium Newsletter
and its Consolidated Plan and Analysis
of Impediments to Fair Housing Choice,
this meeting was the first public discussion of these issues in many years.
Lima’s housing market is generally
considered to be affordable, but after
several decades of economic hard times
and out-migration, the condition of
housing in many areas of the community
is seriously deteriorated. While the City
of Lima (in partnership with the local
community action agency, the Lima/Allen
Council on Community Affairs) is having
more success in encouraging homeownership through its down-payment assistance

program, the profile calls attention to the
serious issues that remain. For example,
while African Americans constitute more
than 20 percent of the population in
the study area, only 12 percent of homeowners are African American.
Of particular concern is the denial
rate for home-improvement loans in our
area. Homeowners need access to credit
if their homes are to be brought up to
housing codes. According to the Federal
Reserve profile, “The denial rate for home
improvement loans in 1998 was much
higher than the national average and
of considerable concern to interviewees.
Nationally, the denial rate for white
applicants seeking home-improvement
loans is 23 percent, but in Lima it is
42 percent. For African Americans, the
national average is 41 percent, compared
to 66 percent in Lima. The national
average across all races is
only 27 percent, but
48 percent in Lima.”

Clearly, we have much work to do,
and the Federal Reserve’s analysis will
help us take the next steps. Lima has
had recent successes with downtown
redevelopment and anticipates a halfbillion-dollar investment by Global Energy.
A local school bond issue, together with
funding from the State of Ohio, will provide more than $100 million to replace
all Lima public school buildings during
the next five years, including a new high
school that will revitalize a distressed
neighborhood. Although we know we
face serious challenges, these and other
successes have resulted in renewed community optimism about Lima’s future.
We know that housing development
must accompany with the other progress.
The Lima Profile is helping to give a
boost to a new initiative—the School
House Project—that seeks
to bring every house

facing a new or renovated public school
up to city codes during the next five
years. The Profile has provided a way to
begin discussion with area lenders about
a partnership combining the city’s
Community Development Block Grant
and HOME resources with the additional
lending power needed to serve all
members of our community.
We hope to look back in five years
with an even greater appreciation for
this boost.
To request a copy of the “Profile
of Lima, Ohio,” contact Laura Kyzour,
Federal Reserve Bank of Cleveland,
at 216/579-2846.

COMMUNITY REINVESTMENT FORUM

Appalachian Awakening
Conference Scheduled for April

in my

of interest

opinion

Taking a Closer Look
at Housing Challenges:
A Mayor’s View
DAVID J. BERGER
Mayor, City of Lima, Ohio

COMMUNITY REINVESTMENT FORUM

Appalachian Awakening
Conference Scheduled for April

in my

“

CR FORUM
ACKNOWLEDGMENTS

think what makes us

time, NCC will examine about

increasing the number of organ-

multifamily units in their

unique is the support from

one application every month.

izations seeking help from NCC.

portfolios across the country,

Neighborhood Reinvestment in

In reviewing applications, NCC

terms of those grant dollars,”

will consider the merits of

says Hudecek. Organizations

each project, with a sensitivity

Neighborhood Reinvestment’s

that receive NCC loans continue

toward local market conditions.

capital grant to establish a

Initially, NCC is restricted to

CC plans to use

members hold 100–2,000 units
in their individual portfolios.
Hudecek observes that the

15 percent loan-loss reserve

Fourth Federal Reserve District’s

Initiative’s ongoing technical

providing loans to Neighbor-

fund that will be used to lever-

housing market is relatively

assistance, resource develop-

Works Multifamily Initiative

age investments by financial

stable compared to markets in

ment, and asset-management

members, explains Hudecek,

institutions to create an initial

other regions of the country.

support and monitoring.

but as organizations outside the

loan fund of $12.0 million, with

He notes that unstable market

“There’s no other intermediary

NeighborWorks network learn

a goal of $35.0 million by the

conditions most deeply affect

I’m aware of that’s providing

about NCC, they may also ask

end of 2005. NCC’s strategic

the individuals with the least

this type of all-encompassing

for financing. “When we have

plan calls for developing 10,000

number of housing options.

service,” observes Hudecek.

the capacity and capital to

units of affordable multifamily

NCC’s work with community

open our doors to other organi-

rental housing between 1999

development organizations is

NCC’s loan committee,

Please contact the following members of the
Community Affairs staff if you have questions or
would like additional copies of this publication.
COMMUNITY REINVESTMENT FORUM

to benefit from the Multifamily

while Multifamily Initiative

Department’s CDFI Fund, will be conducted

The course will cover the concepts and tools

by Nate Dickerson of the Credit Institute for

used in projecting the financial statements of

Economic Development.

CDFIs, as well as issues related to preparing

216/579-2098
Ruth Clevenger

Assistant Vice President
and Community Affairs Officer

Jacqueline King

Program” will be offered June 6-8, 2001.

or to register, contact the Dickerson Knight

The three-day workshop will provide par-

Group at 718/624-4596 or visit

ticipants with the tools and skills necessary

http://www.thinkdkg.com.

Community Affairs Manager

fair and affordable housing in

216/579-2146

industry, reviewed two loan

says that the NeighborWorks

rently hold more than 25,000

all of the country’s regions.

CINCINNATI

applications during its first year.

program is expected to grow

Now that most of its organiza-

by 10 new members each year.

tional systems are in place,

Many of these organizations

Senior Advisor and Managing Editor

For more information about Neighborhood Capital Corporation, contact
Bob Hudecek at 216/970-1610 or NeighCapCorp@aol.com. For information
about Neighborhood Reinvestment Corporation or the NeighborWorks
Multifamily Initiative, contact Frances Ferguson at fferguson@nw.org or visit
http://www.nw.org.

Neighborhood Reinvestment Corp. Strengthens Local Nonprofits

income neighborhoods. These
efforts focus particularly on
expanding and improving affordable-housing opportunities.

to design and run an effective community

Community Affairs Liaison

513/455-4350
PITTSBURGH
Althea Worthy

Community Affairs Liaison

412/261-7943

www.clev.frb.org

About 200 CBOs make up the
NeighborWorks® network, founded by
Neighborhood Reinvestment in the early
1990s. The NeighborWorks affiliation
and chartering process grew out of the
organization’s belief that it was time to
move beyond its original strategy of
starting organizations along the neighborhood housing services model and to
begin to support a wide range of CBO
activity.

For more information on the workshops

Candis Smith

Visit us on the World Wide Web

(CBOs) to revitalize lower-

and assessing financial projections.

Community Development Lending

NeighborWorks members cur-

community-based organizations

“Developing and Operating a

216/579-2392

the idea,” says Hudecek. He

United States, it works to increase the capacity of local nonprofit

The second workshop, “Developing
October 2-4, 2001 at the Cleveland Fed.

in the affordable-housing

in Washington, D.C., and operating nine district offices across the

services for the target community.

developed at the behest of the U.S. Treasury

expected eventually to produce

organization established by Congress in 1978. Headquartered

for financial service organization executives,

Financial Projections,” will take place

and 2004. Hudecek notes that

Neighborhood Reinvestment Corporation is a national nonprofit

determining the best loan products and

in community development. The sessions,

Assistant Vice President
and Corporate Secretary,
Corporate Communications
and Community Affairs

zations, we’ll certainly entertain

Initiative members, thereby

Bank of Cleveland will host two workshops
managers, and board members involved

which comprises practitioners

go on to become Multifamily

development lending program. Topics include

Stephen Ong

Stacey Conner

Hudecek expects that, over

In June and September, the Federal Reserve

CLEVELAND

216/579-2903

Community Development
Workshops Slated for Cleveland

Neighborhood Reinvestment offers
two types of financial assistance on a
competitive basis—operating grants
and real estate development and lending
grants—to chartered NeighborWorks
network members. Together with Neighborhood Housing Services of America
and the national network of CBOs,
Neighborhood Reinvestment offers the
NeighborWorks revitalization services
and educational programs, and it is
known for its nationally recognized work
in the field of homeownership.

The NeighborWorks Multifamily
Initiative, a program established to
promote excellence in the practice of
multifamily housing, comprises 43
NeighborWorks organizations. According to Neighborhood Reinvestment,
more than 25,000 affordable multifamily housing units are owned by
NeighborWorks organizations, and more
than 50 percent of residents in those
communities are renters. The multifamily
development significantly leverages
Neighborhood Reinvestment capital,
accounting for a valuable percentage
of total investment.

We welcome your comments and suggestions.
The views stated in Community Reinvestment Forum
are those of the individual authors and are not
necessarily those of the Federal Reserve Bank of
Cleveland or of the Board of Governors of the
Federal Reserve System.
Materials may be reprinted provided that the
source is credited. Please send copies of reprinted
materials to Community Affairs, Federal Reserve
Bank of Cleveland, P.O. Box 6387, Cleveland, Ohio
44101-1387.

FEDERAL RESERVE BANK OF CLEVELAND

FIRST CLASS MAIL

P. O. B O X 6 3 8 7

U S P O S T A G E PA I D

CLEVELAND, OHIO 44101-1387

CLEVELAND, OHIO
PERMIT NO. 385

“

CR FORUM
ACKNOWLEDGMENTS

think what makes us

time, NCC will examine about

increasing the number of organ-

multifamily units in their

unique is the support from

one application every month.

izations seeking help from NCC.

portfolios across the country,

Neighborhood Reinvestment in

In reviewing applications, NCC

terms of those grant dollars,”

will consider the merits of

says Hudecek. Organizations

each project, with a sensitivity

Neighborhood Reinvestment’s

that receive NCC loans continue

toward local market conditions.

capital grant to establish a

Initially, NCC is restricted to

CC plans to use

members hold 100–2,000 units
in their individual portfolios.
Hudecek observes that the

15 percent loan-loss reserve

Fourth Federal Reserve District’s

Initiative’s ongoing technical

providing loans to Neighbor-

fund that will be used to lever-

housing market is relatively

assistance, resource develop-

Works Multifamily Initiative

age investments by financial

stable compared to markets in

ment, and asset-management

members, explains Hudecek,

institutions to create an initial

other regions of the country.

support and monitoring.

but as organizations outside the

loan fund of $12.0 million, with

He notes that unstable market

“There’s no other intermediary

NeighborWorks network learn

a goal of $35.0 million by the

conditions most deeply affect

I’m aware of that’s providing

about NCC, they may also ask

end of 2005. NCC’s strategic

the individuals with the least

this type of all-encompassing

for financing. “When we have

plan calls for developing 10,000

number of housing options.

service,” observes Hudecek.

the capacity and capital to

units of affordable multifamily

NCC’s work with community

open our doors to other organi-

rental housing between 1999

development organizations is

NCC’s loan committee,

Please contact the following members of the
Community Affairs staff if you have questions or
would like additional copies of this publication.
COMMUNITY REINVESTMENT FORUM

to benefit from the Multifamily

while Multifamily Initiative

Department’s CDFI Fund, will be conducted

The course will cover the concepts and tools

by Nate Dickerson of the Credit Institute for

used in projecting the financial statements of

Economic Development.

CDFIs, as well as issues related to preparing

216/579-2098
Ruth Clevenger

Assistant Vice President
and Community Affairs Officer

Jacqueline King

Program” will be offered June 6-8, 2001.

or to register, contact the Dickerson Knight

The three-day workshop will provide par-

Group at 718/624-4596 or visit

ticipants with the tools and skills necessary

http://www.thinkdkg.com.

Community Affairs Manager

fair and affordable housing in

216/579-2146

industry, reviewed two loan

says that the NeighborWorks

rently hold more than 25,000

all of the country’s regions.

CINCINNATI

applications during its first year.

program is expected to grow

Now that most of its organiza-

by 10 new members each year.

tional systems are in place,

Many of these organizations

Senior Advisor and Managing Editor

Neighborhood Reinvestment Corp. Strengthens Local Nonprofits

income neighborhoods. These
efforts focus particularly on
expanding and improving affordable-housing opportunities.

to design and run an effective community

Community Affairs Liaison

513/455-4350
PITTSBURGH
Althea Worthy

Community Affairs Liaison

412/261-7943

www.clev.frb.org

For more information on the workshops

Candis Smith

Visit us on the World Wide Web

(CBOs) to revitalize lower-

and assessing financial projections.

Community Development Lending

NeighborWorks members cur-

community-based organizations

“Developing and Operating a

216/579-2392

the idea,” says Hudecek. He

United States, it works to increase the capacity of local nonprofit

The second workshop, “Developing
October 2-4, 2001 at the Cleveland Fed.

in the affordable-housing

in Washington, D.C., and operating nine district offices across the

services for the target community.

developed at the behest of the U.S. Treasury

expected eventually to produce

organization established by Congress in 1978. Headquartered

for financial service organization executives,

Financial Projections,” will take place

and 2004. Hudecek notes that

Neighborhood Reinvestment Corporation is a national nonprofit

determining the best loan products and

in community development. The sessions,

Assistant Vice President
and Corporate Secretary,
Corporate Communications
and Community Affairs

zations, we’ll certainly entertain

Initiative members, thereby

Bank of Cleveland will host two workshops
managers, and board members involved

which comprises practitioners

go on to become Multifamily

development lending program. Topics include

Stephen Ong

Stacey Conner

Hudecek expects that, over

In June and September, the Federal Reserve

CLEVELAND

216/579-2903

Community Development
Workshops Slated for Cleveland

FEDERAL RESERVE BANK OF CLEVELAND

FIRST CLASS MAIL

P. O. B O X 6 3 8 7

U S P O S T A G E PA I D

CLEVELAND, OHIO 44101-1387

CLEVELAND, OHIO
PERMIT NO. 385

Full text of Community Reinvestment Forum (Federal Reserve Bank of Cleveland) : Beyond Section 8 : Neighborhood Capital Corporation Will Help Organizations to Preserve Affordable Housing, Spring 2001

FRASER