East Bay Nonprofit Puts Low Income Families Into Foreclosed Homes
RICHMOND (KCBS) - An East Bay nonprofit that works on homeless prevention is using unique loan opportunities to get low income families into previously foreclosed homes.
A below market rate loan from Wells Fargo Bank that is worth about a half million dollars is being put to good use by Shelter Inc. in Contra Costa County.
KCBS' Dave Padilla Reports:
"They want us to go out and purchase foreclosed, bank-owned properties, refurbish them, and then sell them to low- and moderate-income home buyers," said Shelter Inc. Executive Director Tim O'Keefe.
In order to buy the houses, the nonprofit was given a 2 percent loan, which must be repaid in five years.
"If there is a profit on the sale of these homes we can retain that money and use it to either help fund our operations, lower our operating costs, or put it into new property," said O'Keefe.
He said that the program returns money back to the community, helps the home buyer, and provides investment opportunities for the nonprofit. O'Keefe estimates that eight to ten homes could be purchased over the course of a year.
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