Specialized Financing for Neighborhood Stabilization
The REO Capital Fund is the financing subsidiary of NCST. Through a network of participating community development financial institutions (CDFIs) and other community-based lenders, it provides financing for the acquisition and rehabilitation of distressed properties. Since 2009, the Fund has provided over $45 million of capital to non-profit and for-profit borrowers, helping more than 300 units of distressed housing return to productive use.
For community-based organizations, the REO Capital Fund can help finance the acquisition and rehabilitation of distressed properties to maximize your community revitalization efforts. For CDFIs and other community-focused lenders, the Fund can be a funding source, a liquidity provider, and a risk-management tool that makes it possible to significantly expand lending activity targeted to distressed neighborhoods. Borrowers can use the Fund as a primary source of financing or to complement other existing funding.
If your organization is engaged in acquisition and rehabilitation of distressed single-family property, and you are interested in additional information, please contact NCST. We can also assist you with finding a participating lender through which the Fund's financing may be available.
The REO Capital Fund is made possible by a generous program-related investment from the Ford Foundation. With support from the Fund, participating lenders can in turn offer community-based organizations flexible financing for the acquisition and rehabilitation of distressed single-family homes.
Hogar Hispano, Inc. purchased this Maryland single-family home and transformed it with more than $21,000 in rehabilitation to a family-ready home for a buyer who was at 67% of AMI. The family wanted to have their own place with a yard to call home for their children.