Habitat for Humanity Greater San Francisco (H4H) has begun acquiring foreclosed homes as part of its new Neighborhood Revitalization Program (NRP), the nonprofit announced.
The foreclosure crisis of the past year has effected thousands of families in California, one of the states hardest hit by the collapse of the real estate market. Families who have lost their homes are displaced and, in some cases, have to leave their communities for good.
H4H said it has committed $500,000 to launch the neighborhood program, which will enable new affordable homeownership opportunities for local working families following rehabilitation of the homes.
The organization has also entered into a partnership with the city of Menlo Park, which is investing an additional $500,000 in the program. H4H plans to acquire and rehabilitate five vacant bank-owned properties in the Belle Haven neighborhood of Menlo Park, with a possible program expansion following the initial pilot phase.
"I have seen first-hand the impact of foreclosures on Menlo Park and know that we must take immediate action to address the problem," said Heyward Robinson, mayor of Menlo Park. "I’m grateful that we have a community that is willing to step up and address this challenge when the federal and state governments couldn’t."
Families selected for the new program will help with the reconstruction and refurbishment of the homes as part of the standard sweat equity requirement of the Habitat program. They will also have access to the same terms of Habitat’s homeownership program, including no down payment and a zero-interest mortgage, to purchase their homes.
The families will undergo significant homeownership education and training, just as all Habitat families do, helping to keep Habitat’s foreclosure rate at less than one percent locally and around the country.
The greater San Francisco H4H has set a goal of building 100 new homes in five years, including 15 as part of NRP.
