NeighborWorks America Invests $1.3 Billion into Rental Homes

Posted on 13. Jan, 2012 by Bryan Ives in News

NeighborWorks America invested over $1.3 billion in rental housing over the course of its fiscal year ending Sept. 30th. The organization consists of 235 independent nonprofit organizations and owns or manages 90,000 rental homes. CEO Eileen Fitzgerald plans to build out the portfolio to exceed 100,000 rental homes through 2013.

“Government housing budgets at all levels are under stress and the competition for capital priced at rates that make housing accessible for working families, while improved from a year ago, is still a factor in creating quality affordable rental homes for families with modest incomes,” Fitzgerald said. NeighborWorks source of money came from multiple sources, some of which include Community Housing Capital, Calvert Foundation, and S.H Cowell Foundation.

Buying and managing rental properties is something the White House and Federal Housing Finance Agency recently began working on. They plan to sell large amounts of government-owned, repossessed homes in bulk to potential investors who would possibly rent them out and manage them. This recent development has sparked a few firms to build out property management divisions. In August, TenantAccess launched PropertyAccess in order to sell investors management, billing and reporting systems. In September, Green River Capital, an asset management firm that deals with REO for Freddie Mac, also started a rental program.

Challenges remain for potential investors in their ability to gather enough money to meet the supply. According to NeighborWorks, they will continue reaching out to “social investors” to add to its portfolio even as underwriting standards remain strict and borrowing costs rise.

Source: http://www.housingwire.com/2012/01/12/neighborworks-invests-1-3-billion-into-rental-homes

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