Waveland Park Neighborhood Association

Waveland Park Becomes Designated Neighborhood

Mar 27, 2002

Meet Waveland Park's New Partner:
The Neighborhood Finance Corporation

Congratulations on Waveland Park becoming a Designated neighborhood in the City of Des
Moines' neighborhood revitalization program. Let me take this opportunity to explain who
Neighborhood Finance Corporation (NFC) is and how we can help with your revitalization
efforts.

NFC was created in 1990 as a result of a consulting study by Stockard & Engler to determine
how to revitalize Des Moines' older neighborhoods. NFC was formed as a nonprofit
organization providing residential real estate funding for neighborhood improvements and
revitalization. NFC has raised $72.2 million in private funds and $21 million in city and county
funds that have been used in NFC designated neighborhoods. NFC began lending in 1991 and
through December 31, 2001 has originated over $85.8 million in loans and grants that has
rehabilitated over 2,400 units of housing.

The NFC program currently includes a single family purchase/rehab loan where homeowners
can borrow up to 100% of the purchase price of the residence plus improvements. NFC will
provide up to 2% of the loan amount, maximum $2,000, as closing cost and/or down payment
assistance. To assist in the rehabilitation of the property, up to 15% of the cost of purchasing the
home plus the cost of repairs, maximum $10,000, will be provided as a forgivable second
mortgage. The second mortgage is forgiven if the homeowner lives in the home for five years
NFC also has a home improvement/rehab loan where current homeowners in NFC designated
neighborhoods can receive funds to rehabilitate their home. Homeowners can borrower up to
125% of the after rehabilitated value of the property and NFC will provide home improvement
assistance depending on the homeowner's income. For households at or below 80% of the area
median income, 33% of the amount needed for home improvement will be in the form of a
forgivable loan. For households above 80% of the area median income, 25% of the amount
needed for home improvement will be in the form of a forgivable loan. The forgivable loan
cannot exceed $10,000. All forgivable loans are in the form of a second mortgage that is
forgiven over a five-year period of owner-occupancy.

For more information about NFC financing call Joni Norman, Karen Riccelli at 246-0010, or
stop by at our office located at 1912 6th Avenue.

Gary Dodge, Director
Neighborhood Finance Corporation

Find more information on NFC programs in Waveland Park at
www.neighborhoodlink.com/desmoines/waveland