Several cities in the East Bay have partnered with Habitat for Humanity to implement the Neighborhood Stabilization Program (NSP) to restore foreclosed properties. Local governments and nonprofits are putting federal stimulus funds to allow working families the opportunity to purchase quality, renovated homes at an affordable price and with down payments as low as 1.75 percent. The average price of homes in the program is $250,000 in Hayward and $135,000 in Eastern Contra Costa County.
Recently Jeronimo and Nancy Hernandez of Pittsburg purchased a home with Habitat East Bay through the NSP. They first moved to the United States from Mexico six years ago and are now parents to two young children.
"For us, it is a dream that we have our own home and an investment for our children," said Nancy Hernandez.
Jeronimo, who is a self-employed landscaper, is happy that his children will have space to grow and play and will finally have their own rooms.
“The goal of the program is to have a positive impact in local neighborhoods trying to stabilize very specific communities,” said Omar Cortez, Housing Development Specialist for the City of Hayward. “We aimed our resources to the areas with a high impact of foreclosures.”
With approximately $3 million in grant funding, the City of Hayward will be able to acquire, rehabilitate, and sell up to twenty foreclosed or blighted homes to low- and moderate-income households.
The non-profit group Habitat for Humanity has invested approximately $3.7 million of NSP funds in Alameda County and $3.1 million in Contra Costa County.
“Habitat East Bay has seen improvements in the neighborhoods that have received NSP funding,” said Krysta Morgenthaler, Vice President, Development & Communications for Habitat for Humanity East Bay.
“By renovating foreclosed homes that had turned to blight in the community, Habitat East Bay has been able to place a new family in the previously vacant lot, allowing for more community cohesion and less chance of crime associated with vacancies like squatting and vandalism.”
To qualify for the NSP program, home buyers must demonstrate a need for housing, good credit, and a willingness to partner with Habitat by contributing a minimum of 250 hours of work on their home. Buyers must earn below 80% of the Area Median Income (about $64,400 for a family of four) and attend an 8 hour HUD-certified pre-purchase counseling training. They must also be approved by either the County of Alameda or the City of Hayward depending on the source of NSP funds.
For more information visit www.habitateb.org.