Revitalizing the Neighborhood
Assistance Program (NAP)
RHLS helped to revamp the financial viability of the Neighborhood
Assistance Program (NAP). This will increase private investments
in community and economic development efforts by $18-20 million
per year.
In 1967, the Pennsylvania legislature created the innovative
NAP to encourage businesses to provide capital to help improve
distressed neighborhoods—the first program of its kind
in the nation. NAP enabled businesses who made contributions
to approved nonprofit organizations to obtain state tax credits.
Thousands of business participated and millions of dollars
were distributed to community-based organizations. NAP also
helped banks to fulfill their corporate missions: to contribute
to community development within their service areas.
Use of the NAP credit in Pennsylvania served as a model for
other states. It proved that—given the right state credit
incentives—businesses will invest in programs designed
to improve disinvested neighborhoods. By the late ‘90s,
NAPs existed in more than10 states and generated over $63 million
in private sector contributions to nonprofit organizations.
In recent years, however, due to competing investment credit
opportunities for businesses, the appeal of the NAP waned.
In some years, over 50 percent of available credits went unused
in Pennsylvania. Thanks to recent changes in NAP legislation,
the NAP will hopefully be well-used again.
Read more in the article from Philadelphia
Lawyer, Winter 2008
Download the Neighborhood Assistance
Program Memo (PDF)
Neighborhood Assistance
Program Brochure (PDF)
Helping Victims of Predatory Lending
Community development efforts are being thwarted by the epidemic
of predatory lending that has swept through the nation in recent
years. Predatory lending is causing numerous homeowners, especially
African American women, to lose their homes.
RHLS, Community Legal Services (CLS), PHFA and the City of
Philadelphia are structuring a rescue loan program to assist
victims of predatory lending in order to stem the tide of foreclosures
that is impeding the economic revitalization of poor communities.
The City has already committed $1 million to this special Homeowner’s
Equity Recovery Opportunity (HERO). That
pledge is expected to leverage $10 million from PHFA, and increased
funding is anticipated from both sources to bring overall participation
to over $20 million. RHLS is now talking with county officials
about expanding this initiative to other parts of the State.
Making Energy Affordable
Rising energy costs are causing a housing crisis for those
struggling to make ends meet.
RHLS and the Pennsylvania Utility Law Project
(PULP) are collaborating
with ACTION-Housing in Pittsburgh to structure a $500,000 pilot
program for weatherizing older houses in Western Pennsylvania
using Neighborhood Assistance Program tax credits. This will
fund home repairs that will permit habitability and increase
energy savings in low income households.
Creating longer-term viability of these homes will benefit
both the residents and their communities. An additional goal
of the program—dubbed “Energy Conservation Assisted
by Critical Home Improvements”—is to demonstrate
the value of a system of private investment supported by tax
incentives in preserving housing and reducing energy consumption.
If the pilot is successful, the partners will work with the
DCED to build the program statewide. |
