Better Business Bureau Report for
Neighborhood Housing Services of Richmond, Inc.

Better Business Bureau Report issued April 2014
Better Business Bureau Report expires April 2016


This BBB Accredited charity meets all 20 Standards for Charity Accountability. Find out more...


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Charity Contact Information

Name: Neighborhood Housing Services of Richmond, Inc.
Address: 2712 Chamberlayne Ave.
  Richmond, VA 23222
Phone: 804-329-2500
Web Address: www.nhsofr.org
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Better Business Bureau Comments

Formerly known as:NeighborWorks Resource Group
Richmond Neighborhood Housing Services

Year, State Incorporated: 1981, Virginia

Stated Purpose: Established in 1981, Neighborhood Housing Services of Richmond, Inc. is the oldest community development corporation in the City of Richmond. With over 32 years of service to the Virginia area, the organization’s first efforts were aimed at responding to the increase in urban blight, the decrease in the availability of quality affordable housing, and the shrinking opportunities for economic self-sufficiency in Central Virginia Over the years, Neighborhood Housing Services of Richmond, Inc. has made significant progress towards addressing community concerns, while providing new opportunities for growth within the Central Virginia area. As a HomeOwnership Center, we understand the importance of affordable homeownership and have focused our mission on “promoting successful homeownership and revitalizing neighborhoods.”

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Evaluation Conclusions

              

Neighborhood Housing Services of Richmond, Inc. meets the 20 Standards for Charity Accountability.
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Programs

              

Neighborhood Housing Services of Richmond, Inc. understands the significance of becoming a homeowner and has committed itself to creating opportunities for homeownership, specifically among low- to moderate-income families. This partnership help support a Homeownership Center that is designed to provide families with the resources needed to successfully plan for, purchase and maintain a home. As a “one-stop-shop” for homeownership, Neighborhood Housing Services of Richmond, Inc. offers the following programs and services all under one roof: Pre-Purchase Homebuyer Education and Housing Counseling, Financial Literacy and Individual Development Accounts, and Counseling, and Default Counseling/Foreclosure Prevention. One-on-One Housing Counseling Anyone interested in buying a home is required to meet with one of Neighborhood Housing Services of Richmond, Inc.’s HUD certified housing counselors. Some prospective homebuyers are not “mortgage ready” and can benefit from long-term support in resolving past credit or budgeting problems. The homeownership counselor works with each individual or family to: • Analyze their mortgage readiness; • Determine what type of home the prospective homebuyer can afford; • Assist the prospective homebuyer in developing an action plan to cure any credit challenges; • Develop a homeownership track for classes and programs that best fits their needs; and • Provide long-term support throughout the entire home buying process. It has been proven that pre-purchase counseling can make a significant impact in two separate areas. First, it is expected to increase the effectiveness, or rationality, of the home-buying decision. In other words, pre-purchase counseling can enable an individual or family to make a more rational decision about whether they should become homeowners, and if so, under what circumstances. Second, pre-purchase counseling is believed to have an effect on the subsequent stability of the homeowner and, therefore, on the likelihood of loan delinquency or default. The underlying assumption is that the better prepared the homebuyer is for homeownership, the less likely he or she is to run into difficulty down the road. Homebuyer Education Neighborhood Housing Services of Richmond, Inc.’s Homebuyer Education Certification Course, known as FasTrak to Homeownership, is an eight-hour course designed for customers with fairly minor obstacles in their pursuit towards homeownership. Usually, the obstacles can be resolved within a month or two. Working in conjunction with our professional staff, volunteer instructors from the real estate, insurance, financial, legal and inspection industries help prospective homebuyers minimize the fear of the home buying process by providing clear and consistent information and high quality guidance for buying a home. The objective of the course is to help answer the many questions a prospective homebuyer may have regarding the home buying process. Borrowers who participate in the Homebuyer Education class are usually required to successfully complete the course as a qualification to entitle them to a reduction of the cost of mortgage insurance, down payment and closing costs assistance. As an incentive to participating in the Homebuyers Club, qualified participants are given the option to open an Individual Development Account (IDA) to encourage saving and asset building. The IDA component is restricted to first-time homebuyers earning between 50-115% of the area median income (AMI), and i

For the fiscal year ended December 31, 2011, Neighborhood Housing Services of Richmond, Inc.'s program expenses were:

  
Program services 531,561
Cost of residential real estate sales 230,899
Total Program Expenses: $762,460
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Governance

              

Chief Executive : Christie V. Smith, Executive Director
Compensation*: 

Chair of the Board: Tom McNally
Chair's Profession / Business Affiliation:

Board Size: 9

Paid Staff Size: 8

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Fund Raising

              

Method(s) Used:

Invitations to fund raising events, grant proposals, internet & website appeals.
Fund raising costs were 8% of related contributions. (Related contributions, which totaled $480,029, are donations received as a result of fund raising activities.)
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Financial

              

The following information is based on Neighborhood Housing Services of Richmond, Inc.'s audited financial statements for the fiscal year ended December 31, 2011.

Source of Funds  
Contributions 459,029
Lending Fee Income 171,428
Residential real estate sales 138,000
Interest on mortgage loans 137,722
Other income 34,274
Grants 21,000
Total Income $961,453


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Uses of Funds as a % of Total Expenses

Programs: 87%  Fund Raising: 5%  Administrative: 8% 

Total income $961,453
Program expenses $762,460
Fund raising expenses 39,888
Administrative expenses 68,565
Total expenses $870,913
Income in Excess of Expenses 90,540
Beginning net assets 658,453
Ending net assets 748,993
Total liabilities 2,006,946
Total assets $2,755,938


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Tax Status

              

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
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An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the BBB Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the Council of Better Business Bureaus, Inc.

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