In the News

N.J. fund will foster neighborhood growth

Philadelphia Business Journal, June 17, 2005

New Jersey's Housing and Mortgage Finance Agency and the Reinvestment Fund formed a new $10 million fund called Predevelopment Loan and Acquisition for Nonprofits, or PLAN. The new fund aims to foster neighborhood revitalization, create and preserve affordable housing, and help nonprofit developers undertake projects that have a positive impact on their communities.

The state's Department of Community Affairs gave a $5 million check to the Reinvestment Fund, a Philadelphia organization dedicated to investing in low-income communities and moderate income individuals. The money will be used as a guarantee to support the fund and TRF will raise $10 million in capital and manage the fund.

The money can be used for predevelopment and acquisition loans. The funds can be used to pay for expenses needed to determine if a project is feasible, provide nonprofit housing developers with financing to acquire properties, and assist with pre-construction expenses.

MEND Inc., a community-based organization in Moorestown, N.J., received $50,000 as the first loan under the new program. MEND, which stands for Moorestown Ecumenical Neighborhood Development, was created in 1969 in an effort to provide decent, safe and affordable housing in Moorestown and throughout Burlington County.

Since its inception, its developments have included both new construction and the rehabilitation of existing apartment buildings. Since forming, it has developed 324 units, and currently manages over 250 rental units at 18 locations in Moorestown.

MEND plans to use the money for preliminary architectural, engineering and legal expenses for a new eight-unit affordable rental complex in downtown Moorestown.