The Agency
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NHS Board Meeting
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Since 1977, NHS of Greater Berks, Inc. 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:
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Credit and budget counseling, as well as post-purchase counseling as a HUD certified agency
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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
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A supply of new homeowners through Home Buyer Education classes around the County, teaching the process, terminology, and responsibility of homeownership
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Resident leadership development and organization with our Neighborhood Building Department
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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, 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 |
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:
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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;
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Reduced lending risk by virtue of our secondary financing,
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An increased supply of new “ready” borrowers/buyers.
Why is homeownership important to the community - why should it be supported?
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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
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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.
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Neighborhoods are stabilized since low income homeowners stay in place 12 years (vs. 7 for conventional)
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Children of homeowners complete high school at a rate 116% higher than children of renters
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Teenage pregnancy is 20% lower
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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
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For each 1% increase in homeownership, other homes on the block increase in value by $800 (national average)
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NHS homebuyer education and counseling statistically reduces defaults by 29 to 34% for 1st-time homeowners
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