The Agency
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NHS Board Meeting |
Since 1977, NHS of Reading has been a neighborhood based nonprofit
housing agency. We are governed by an elected Board of Directors,
which is comprised of neighborhood residents, business and government
representatives. Residents comprise the majority. We are a Community
Development Financial Institution (CDFI) under the U.S. Treasury, and
a certified Community Housing Development Organization (CHDO), under
the Federal HOME Program.
NHS accomplishes its mission primarily through several core programs.
We are a “Full-Cycle” Home Ownership Center, providing:
- Credit and budget counseling, as
well as post-purchase counseling as a HUD certified agency
- Low interest mortgage financing to
persons below 80% AMI, in tandem with our partner lenders for non
city home purchases and in the city low interest financing to
persons up to 105% AMI
- A supply of new homeowners through
Home Buyer Education classes around the County, teaching the
process, terminology, and responsibility of homeownership
- Resident leadership development
and organization with our Neighborhood Building Department
- Single Family Development, which
eliminates blighting influences through rehab and resale of
deteriorating properties.
During a typical year we provide
homebuyer education to nearly 500 persons in Berks County. We are a
point of contact agency for mortgage qualifying for Our City of
Reading Homes.
In 2003 we became an official Home Ownership Center under the National
Campaign for Home Ownership sponsored by Neighborhood Reinvestment
Corporation. We provide a menu of low interest loans and grants for
home repairs in Berks.
Directional sign in the NHS offices
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From an economic impact perspective, NHS has generated $35,000,000 in
Berks County in the last three years.
In addition to homeownership activities, acting as a CHDO for the City
and County, we have sponsored four affordable senior developments –
Penns Crossing Development, in Spring Township and Oakshire Senior
Apartments in the City of Reading, Southgate in Bern Township and
The Knittery Mill in Hamburg. Over 200 affordable senior apartment
units.
As with any nonprofit, without the generous support of the community,
our services could not be provided. While we are moving toward
increased self-sufficiency through fees-for-service, the client base
we serve could not afford to cover the actual costs. Therefore, we
depend on the community, and particularly the lenders and local
government. Our services directly impact a lenders’ CRA compliance
rating, but more importantly, they provide:
- A genuine return on investment by
better preparing low/mod income borrowers for responsible and
successful home ownership; in fact, borrowers who receive “HUD type
counseling” or education default on mortgages 34% less often;
- Reduced lending risk by virtue of
our secondary financing,
- An increased supply of new “ready”
borrowers/buyers.
Why is homeownership important to the
community - why should it be supported?
- For each 'low income renter -
turned homeowner', the public saves over $34,000 in public
social services costs (fewer teen pregnancies, fewer
involvement with criminal justice system, lower drop out rate,
less drug/chemical issues, etc.) in 2002 dollars
- For each
Renter-turned-homeowner, they will have 12x more 'wealth' by age
65 than their renter counterparts, and 68% of it will be in home
equity.
- Neighborhoods are stabilized
since low income homeowners stay in place 12 years (vs. 7 for
conventional)
- Children of homeowners
complete high school at a rate 116% higher than children of
renters
- Teenage pregnancy is 20% lower
- Homeowners are more likely to
vote, re-invest (maintain) their homes, and be involved with at
least one civic group - in other words, involved in their
community
- For each 1% increase in
homeownership, other homes on the block increase in value by
$800 (national average)
- NHS homebuyer education and
counseling statistically reduces defaults by 29 to 34% for
1st-time homeowners
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