Community Affairs:
Article Archive > New Jersey

Foreclosure Assistance in New Jersey
HANDS Inc., a local New Jersey community development corporation, is taking a leadership role in reducing the community impact of foreclosures. HANDS (Housing & Neighborhood Development Services) is leading a task force in Essex County that is working to develop a new special-purpose entity, Community Asset Preservation Corporation (CAPC).

CAPC is designed to preserve homes and prevent a decline in communities from foreclosures. It would address the blight caused by foreclosed, vacant properties. CAPC will identify communities affected by subprime mortgage foreclosures and negotiate with the lenders and servicers to purchase, at a discount, pools of the vacant and at-risk properties in the targeted area. The initial target is to acquire title to 1,000 to 1,500 properties. CAPC is expected to develop relationships with realtors, lenders, servicers and property management companies.

HANDS has also developed a pilot program called, "Time is the Enemy." With this program, the organization will partner with one lender at a time, which holds a number of foreclosed properties in a targeted area. HANDS will work with that lender to develop solutions to minimize the impact of the foreclosures on the neighborhoods. The community organization will purchase the mortgages from the lender, service the loans, and manage the properties, ensuring that the properties remain affordable.

For more information, visit the Web site.

New Funds for Affordable Housing in New Jersey

New affordable housing will be developed throughout New Jersey as a result of a partnership between two state agencies. In a joint effort, the New Jersey Department of Community Affairs and the Housing and Mortgage Finance Agency will award more than $54 million in affordable housing funds to local developers. The statewide Balanced Housing/Home Express program contributed $39 million, and $15 million will come from the federal LIHTC program. The award is expected to attract $136 million in investment capital. Through this effort, 12 communities across the state will receive support for the creation of 723 affordable rental housing units and the preservation of 339 units.

The New Jersey communities to receive the funding include Camden, Deptford, East Orange, Evesham, Franklin Township, Gloucester Township, Hoboken, Jersey City, Long Branch, Passaic, Plainfield, and Toms River. Both for-profit and nonprofit developers will participate in constructing or preserving housing in these areas.

For more information, visit New Jersey's Housing and Mortgage Finance Agency at http://www.state.nj.us/dca/hmfa/ or call (609) 278-7400. [Published in News from the Districts, Community Developments, Spring 2008]

New Venture Fund Emerges in New Jersey
A new venture fund, Garden State Life Sciences Venture Fund, was recently created in New Jersey to fund emerging life sciences companies in the state. The New Jersey Economic Development Authority (NJEDA), a state agency, has entered into a 10-year limited partnership agreement with Quaker BioVentures, a life sciences venture capital fund serving the Mid-Atlantic region, to create and manage the new $10 million fund. The initial funding will be leveraged for an additional $30 million to be used in New Jersey. An integral part of the state's overall economic development strategy, the venture fund is intended to complement the many other technology investment programs offered by NJEDA.

For more information, visit www.njeda.com or call NJEDA at (609) 292-1800.
[Published in News from the Districts, Community Developments, Summer 2005]

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