Just Say Yes to Nehemiah
In the pricey New York housing market, hundreds of black and Latino families are now homeowners despite their modest incomes. The reason is an approach to low-cost housing called Nehemiah: Community groups that function as nonprofit developers are building as many as 400 low-cost houses a year without a single federal dollar. Nehemiah can work in Southern California, too. In fact, in Los Angeles, Mayor Tom Bradley and the City Council now have the opportunity to start up Nehemiah by making it easier for local nonprofit developers to acquire the necessary land. It’s an opportunity not to be missed.
Nehemiah cannot work without help from local government. In Brooklyn, church-based community groups have built more than 1,800 houses on land donated by the city; and unusual cooperation from the municipal water, sewer, building and housing departments has cut construction costs. For financing, these organizations have used no-interest loans from a revolving fund supported by major religious denominations.
In Los Angeles, the United Neighborhoods Organization and the Southern California Organizing Committee want to build a community of 316 townhouses on 12 acres of city-owned vacant land near 41st and Alameda streets. UNO and SCOC want to buy the parcel for $6.6 million, a little less than what they believe the city paid several years ago. The mayor and council should say yes and in effect subsidize the construction of houses that will sell for about $63,000.
Financing for the $35-million project includes $11 million from the Century Freeway Housing Program and an $8 million interest-free revolving construction loan fund supported by various church groups. But, as is the case with most big real estate deals, the church-based SCOC and UNO do not have every penny in hand. By approving the sale of the land at the proposed price, the mayor and council would give the Nehemiah project the additional financial leverage needed. They would also be launching Nehemiah in Southern California--a most worthy political idea.
