About Northwest Community Revitalization Corporation

NCRC was a response to programs at the Federal level that provided funds to support homeownership in under represented constituencies. These programs required that a local non-profit organization develop these ownership opportunities. While there were several existing Community Development organizations in Minneapolis, there were none in other parts of Hennepin County. Hennepin County Housing Program staff and New Hope planning staff worked to form NCRC in 1990. Incorporated in 1992, NCRC began developing and marketing housing, with a service area of northwestern Hennepin County, including 15 cities.

The early participating cities were New Hope, Crystal, Brooklyn Center, Brooklyn Park, Maple Grove and Robbinsdale. The NCRC program is slightly different in each city. Crystal is no longer active, nor is Brooklyn Center. New Hope has chosen to build new housing to replace teardowns. Brooklyn Park is converting rental twin homes into ownership homes after significant rehab. Robbinsdale is interested in rehab of existing homes to be sold to increase the affordablility of homes for people who work in Robbinsdale. Maple Grove has a scattered site rental housing program for families qualifying at 50% of area median income.

Each city has a slightly different target population within the income parameters.

NCRC is governed by federal rules for a CHDO — Community Housing Development Organization. The Board is ideally 1/3 representatives appointed by cities, 1/3 representatives of the target population, and the remainder residents of the service area and other parties interested in the program.

NCRC has clear parameters for conflict of interest. This is necessary because of the number of city-appointed Board members, and because NCRC has always had a number of lenders on the Board.

NCRC maintains a list of approved lenders for the program, selecting those lenders because they are familiar with a wide range of mortgage assistance programs, know the CHDO program, and work for the good of the target client population.

NCRC is unusual among non-profits in that by far the largest portion of its operating budget has been earned income. This means that NCRC is less affected by the whims of funders — but it is affected by slow-down in home purchases.

Kristine Madson was on the staff when NCRC was housed at Northwest Hennepin Human Services Council, and agreed to return in 2003 to restore the organization, a task largely accomplished. The plan today is to seek outside funding to increase the capacity of NCRC, so that it can attract additional cities from the service area.

NCRC PROGRAMS

BUYER EDUCATION: NCRC requires that anyone who participates in a homeownership program complete a "Home Stretch" class. The classes are provided by several organizations, and are a very good, in-depth look at the realities of homeownership. The classes are not free, although the charge is minimal.

NCRC also provides monthly Information Programs to introduce potential buyers to the program, walk them through the application process, and answer questions about the program and the houses. Usually we also have a lender present at each Program. Attending an Information Seminar is a requirement.

MARKETING: (At present in Brooklyn Park) The City identifies and rehabs properties. NCRC identifies buyers, shows the houses, and attends the closing.

CONSULTING: (At present with Maple Grove) The city applies for funds to support their rental subsidy program. NCRC staff review the application to make it stronger, before it is sent to MHFA.

DEVELOPMENT (Most recently with New Hope) The City, with additional support from Robbinsdale, identified property, razed two inadequate houses, and contributed the land to NCRC. NCRC built 6 twin homes on the property, and is now selling those homes.

NCRC is prepared to act as consultant, developer, marketer, or all three, with any of the 15 cities in the service area of northwestern Hennepin County. The general requirement is that the city commit funds, land, or similar resources to the project, and work in concert with NCRC. NCRC provides expertise that would otherwise require the city to add a Community Development function to city government

Funding streams for NCRC projects are complex.

MHFA distributes funds competitively under the HOME program, which provides gap funding for both construction and purchase, and a given project might have HOME funds for both. Awarded funds for gap financing are distributed by Hennepin County as directed by NCRC. NCRC does not usually have actual possession of funds. Gap financing for clients consists of "soft" second mortgages which do not accrue interest and are not payable until the home is refinanced or the mortgage is paid.

CRV funds are competitively awarded by the State for Community Revitalization projects. The funds may go to gap financing of construction or mortgage.

Hennepin County administers other funds, and also distributes funds through such programs as ADDI, which provides downpayment support to first time homebuyers. Again, NCRC may request ADDI funds, but they are not disbursed to NCRC.

There are also other HUD, State, and County programs, as well as some City programs, which can be useful for NCRC clients.

All of these are called "grants", but are in fact contracts with the particular governmental unit. Under both HOME and CRV, a small percentage may be set aside for administration (e.g. $2,000 of the $183,000 per unit).

Most of the budget for NCRC operations has been derived from these administrative set-asides. There has been some attempt to seek outside funding, but until this year that has been difficult. Both the Otto Bremer Foundation and the Wells Fargo Housing Foundation have consistently contributed small amounts, however.

The Sims Park project was built from multiple sources and in that sense displays the operations of NCRC. New Hope razed and contributed the site. Robbinsdale contributed some of its own CRV funds, seeing this as a regional project. Some HOME program construction funds and gap financing were included as well. The majority of the funding, however, consisted of a construction loan from Bremer Bank, which is being paid down as houses sell. The slowdown in housing sales from August 2006 to March 2007 was bad timing, but sales are now pending on several units, so we should have the project sold this season.

Because of the limited operational dollars available through program funds, NCRC is seeking outside funding to increase our capacity to develop housing in the area we serve.