Over the last two decades, a simple approach has guided the work of the NeighborGood Partners Loan Fund in creating more opportunities for affordable housing and community improvement across the Delmarva Peninsula.
“We say we are strengthening our communities – one loan at a time,” said Dave Callahan, director of the Loan Fund.
By lending and facilitating financing for nonprofit and for-profit corporations, the Loan Fund has brought to life hundreds of revitalization projects across the region, including permanent and transitional affordable housing, as well as community facilities such as health centers, libraries and community centers.
The Loan Fund began in 2004 as an outgrowth of a small pre-development fund at NeighborGood Partners for affordable housing development by area nonprofits. After being certified as a Community Development Financial Institution (CDFI) by the Department of Treasury, the Loan Fund focused on providing financial support to under-resourced communities and borrowers typically overlooked by mainstream financial institutions.
“We fill in the gaps that exist around the types of loans nonprofits need to get these important projects done,” Callahan said. “Depending on the situation and the need, we may help by providing a loan to bridge the cost of the project until the nonprofit receives funding, or we can partner with banks and other community development financial institutions to join us in lending on these projects.”
The growth of the Loan Fund reflects its outsized impact. Before 2004, NeighborGood Partners closed on 58 loans totaling $495,000. Since then, the Loan Fund has given out 294 loans totaling $180.4 million for affordable housing, community facilities and neighborhood revitalization projects.
The fund averages about 20 loans a year, and its staff of five manages over $30 million in assets – representing a staggering 3000% growth since 2004.
For the Diamond State Community Land Trust (DSCLT), partnering with the Loan Fund has allowed the nonprofit to become successful developers of affordable housing through a model known as shared equity housing, which separates ownership of the home from the land.
“NeighborGood Partners is deeply committed to fostering individual and community success, with a strong, people-centered approach. The Loan Fund division has a team that stands out by being highly supportive and accessible in helping clients navigating development funding challenges,” said Amy Pratt, program manager of Diamond State Community Land Trust.
“Together, that allows NeighborGood Partners to be a part of creating positive, sustainable impact in Delaware.”
Callahan said the Loan Fund’s knowledge of the complicated financial landscape, as well as the depth of its partnerships with other lenders and organizations, creates an ecosystem that supports nonprofits working to improve and strengthen their communities.
“Organizations don’t just decide one day they want to build homes or a new school or library. So much has to go into the plan to make that happen – so much behind the scenes efforts to create that success,” Callahan said. “We’re proud to be part of this unseen work that is so important to strengthening our communities.”
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