Forty-Seven Vacant Properties in Foreclosure in Essex County, N.J., to Be Reclaimed by a Community Coalition Led by HANDS, Inc.

ORANGE, NJ--(Marketwire - April 1, 2009) - Today HANDS, Inc. announced that it acquired the defaulted mortgages on 47 vacant homes in the greater Newark area. The bulk purchase of 47 mortgages expected to foreclose is the first large-scale purchase in the nation by an alliance of nonprofit organizations. All of the homes are vacant and abandoned, and most are deteriorated, contributing to blight in their surrounding communities. HANDS purchased the mortgages from Washington Mutual Bank, now J.P. Morgan Chase, as part of a pioneering new strategy to reclaim neighborhoods hard-hit by foreclosure, and is working with its partners in Operation Neighborhood Recovery to rehabilitate the properties so they may become cornerstones for productive change in their surrounding communities.

Homes left vacant and abandoned in the wake of foreclosure have a devastating effect on communities. Increased crime and vandalism, as well as property neglect, lead to decreased property values and increased cost -- as much as $19,000 per property -- to local and state governments, according to industry studies. Six-hundred fifty-four New Jersey homes were repossessed by banks in February 2009, and more than 600 New Jersey homes were scheduled for foreclosure auction the same month.

"Time is our enemy and early intervention is the key to battling the destabilizing influence of abandoned and foreclosed properties on neighborhoods," said Patrick Morrissy, executive director of HANDS, a member of the NeighborWorks network. "We knew that as time passed, the properties would continue to deteriorate, their values would plummet, as would the home values in the overall neighborhood. It became clear to everyone that the results of mortgage fraud, the descending real estate market and the loss in value from vandalism and neglect would result in continued deterioration of our neighborhoods. Given the current economic circumstances, this transaction made the most sense for everyone, especially the community."

HANDS specializes in the redevelopment of troubled properties in order to bring about long-term sustainable neighborhood change, and created Operation for Neighborhood Recovery (ONR) as a proactive effort to deal with the neighborhood fallout of the foreclosure crisis. While working with other area community development corporations to stabilize and rehabilitate the properties, HANDS will ultimately convey groups of the properties to ONR partners that work in the properties' respective neighborhoods. ONR partners include La Casa de Don Pedro, Unified Vailsburg Services Organization, Episcopal Community Development, Greater Newark Housing Partnership, Brand New Day and HOMECorp. The ONR partners have agreed to rehabilitate the properties and make them available for affordable homeownership -- an added benefit to the stabilizing influence that these rehabilitated properties will have on the neighborhoods.

"At a time when real estate values have plummeted drastically, homeowners are facing unprecedented financial stress and insecurity, and the national foreclosure rate is at an all-time high, local nonprofit organizations in Essex County have found a way to work together to respond to the crisis," said Ken Wade, CEO of NeighborWorks® America. "Nonprofit organizations like HANDS are neighbors who care about their communities, and have a proven track record of success. In order to reclaim our communities from abandonment and foreclosure, nonprofits are joining together and working alongside private sector partners to implement innovative solutions that effectively address the scope and scale of the crisis."

This innovative transaction required a strong collaborative effort to structure and provide the financing necessary for the purchase of the mortgages and ongoing maintenance and stabilization costs, which are anticipated to total $5.4 million. New Jersey Community Capital, a community development financial institution working throughout New Jersey, took a lead role in this transaction, coordinating the provision of debt and equity from its socially responsible partners, Prudential Social Investment, Local Initiatives Support Corporation-Greater Newark & Jersey City (LISC), NeighborWorks® America, and Enterprise Community Partners.

"New Jersey Community Capital supported this project from the beginning because of its innovative nature and the dramatic impact it can have on the affected communities. Because of its extensive financing needs and risky nature, the collaboration on this transaction was essential, and provided a new opportunity for this group of socially responsible funders to work together on such a pivotal project," said Robert Zdenek, president of New Jersey Community Capital.

By acquiring the group of mortgages in bulk purchase, HANDS is able to immediately invest in stabilizing the vacant properties and return them to productive use. HANDS faces significant carrying costs (interest, property taxes and insurance) during this process, requiring a collaborative effort throughout all phases of the project to make it a success.

Operation Neighborhood Recovery represents the first transaction of its kind in the nation. As the partners of ONR move into the next phase of the project leading to the day when new homeowners move into the properties, they are also creating the cornerstone for the development of a national model for a community asset preservation corporation (CAPC). The CAPC model being created by ONR will be a vital part of the solution to the foreclosure crisis around the country.

To view pictures of the Essex County homes acquired, please visit: http://www.flickr.com/photos/36513811@N06/?saved=1.

For more information about HANDS, Operation Neighborhood Recovery, and their response to the foreclosure crisis in Essex County, please contact Patrick Morrissy, executive director of HANDS, Inc., (973) 678-3110 or patrick@handsinc.org.

**Media: For addresses of the acquired homes, please contact Patrick Morrissy, executive director of HANDS, Inc., (973) 678-3110, Patrick@handsinc.org.**

About HANDS, Inc.

Over the past 23 years, HANDS, Inc. has carried out and refined a neighborhood revitalization effort in the neighboring cities of Orange and East Orange, New Jersey bordering Newark. HANDS targets vacant and underutilized problem properties for redevelopment maximizing the impact on their neighborhood. We develop affordable housing, mixed-use developments and are creating an arts district in the Valley neighborhood of Orange. Incorporated as a nonprofit community development corporation in 1986, Housing and Neighborhood Development Services, Inc. is tax exempt under IRS 501(c)(3). HANDS became a chartered affiliate of NeighborWorks® America in 1999. The HANDS' strategy is built on a philosophy that neighborhoods are revitalized by the actions of hundreds of individuals investing their time, funds, energy and hopes in the future of that neighborhood. HANDS' role is to leverage those investment decisions, to bolster public sector action and generate more private sector investment. High-Impact Development of vacant, troubled properties is the centerpiece of this strategy. The seven inter-related core elements of the strategy are: redevelopment of pivotal properties in target neighborhoods; increasing homeownership/investing in first time homebuyers; strengthening neighborhood organizations; developing leadership; increasing effective citizen engagement; forging strategic partnerships; and shaping public policy and private sector initiatives. Visit us on the web at www.handsinc.org.

About New Jersey Community Capital:

New Jersey Community Capital facilitates the flow of money and knowledge to create wealth and well being in underserved communities. In addition to its financing activities, New Jersey Community Capital provides technical assistance and training programs, conducts research regarding its impact and social return on investment, and disseminates information about itself and the industries it serves. Since its founding in 1987, New Jersey Community Capital has committed financing for approximately 660 projects totaling nearly $225 million in the housing, community services and business sectors. New Jersey Community Capital has been acknowledged by various partners throughout its history. It received the 2003 Excellence Award for Community Impact for demonstrating its efforts have made a difference in the communities it seeks to serve. It also received a Corporate Partnership Award from the New Jersey Department of Education in 2007 in recognition of its efforts to support quality public school choice for all families in the state through its leadership, creativity and commitment to equality and excellence in education.

About NeighborWorks® America

NeighborWorks® America creates opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. Since 1991, we have assisted nearly 1.2 million low- to moderate-income families with their housing needs. Much of our success is achieved through our support of the NeighborWorks network -- more than 230 community development organizations working in more than 4,400 urban, suburban and rural communities in all 50 states, the District of Columbia and Puerto Rico. In the last five years, NeighborWorks organizations have generated more than $15 billion in reinvestment in these communities. NeighborWorks America is the nation's leading trainer of community development and affordable housing professionals. For more information, visit www.nw.org.

Contact Information: For Further Information Contact: Patrick Morrissy Executive Director, HANDS, Inc. (973) 678-3110 patrick@handsinc.org Erin Angell Collins 202-220-6317 ecollins@nw.org