Gap Financing
The Lower 9th Ward Housing Redevelopment Loan Fund—currently being created and capitalized by NENA—will provide forgivable and low interest loans to homeowners who require gap financing in order to rebuild. NENA’s case managers will perform the initial intake and screening of applicants, and NENA will partner with a Community Development Financial Institution (CDFI) to provide support with loan closing and monitoring. A review committee consisting of diverse representatives from NENA, the community, and banking and development industries will make all final loan decisions. In addition, when closing loans, the CDFI partner will record a mortgage instrument that provides for a 100% recapture provision in the event that borrowers resell their homes within five years of loan closing, as well as lower percentages if sold within ten years. NENA is currently seeking funding from several philanthropic sources to capitalize the Fund.