Greater Northern Community Investment Group is a nonprofit focused on rehabilitating vacant and distressed properties in underserved communities. They work with local governments and banks to acquire affordable housing units, renovate them, and sell the homes at below-market rates to qualified buyers with affordable mortgages. This provides families with homeownership, strengthens neighborhoods, increases property values and tax revenue, and supports communities struggling with population loss. They are requesting $50,000 in financing to rehabilitate 5 homes in Aliquippa, PA, which has high poverty and unemployment.

1. http://www.gncig.com
Through it’s Board of Directors and staff,
Greater Northern Community
Investment Group brings a unique
understanding to the community
development process at every level, from
concept to final occupancy.

3. Greater Northern focus is the transforming
of underutilized, non-performing properties or
Underdeveloped sites into assets for the
company and the community.
© 2011 Greater Northern Community Investment
Group

4. Greater Northern believes that there
are opportunities to create value and
generate revenue, both in the public
and private real estate markets.
© 2011 Greater Northern Community Investment Group

5. Many communities in America have been facing
the challenges of shrinking revenues, while having
to provide services to their constituents. They are
also faced with the cost of non-performing assets.

6. Every community’s most significant asset
is land. The taxes from that land provides
funds to pay police, fund schools, clean the
snow, and cut the grass for the little
league teams.
© 2011 Greater Northern Community Investment Group

7. Greater Northern anticipates acquiring
properties at a greatly discounted rate,
significantly below fair market value.
Municipalities will benefit from this plan,
because it provides them with immediate
revenue that can be used to pay for services.
© 2011 Greater Northern Community Investment
Group

8. This arrangement also gives the cities revenue
that can be used in the future. Many of these
properties have been off of the tax rolls for years.
Not only do they not generate revenues, but these
properties cost the communities funds.
© 2011 Greater Northern Community Investment Group

9. Vacant properties need to be maintained;
the grass needs to be cut; and the trash
that piles up on them creates an unhealthy
condition. This drains much needed
resources.
© 2011 Greater Northern Community Investment
Group

10. A vacant property creates a blighted condition,
which allows insurance companies to cancel or
increase the premiums of the homeowners that
live nearby.
© 2011 Greater Northern Community Investment Group

11. Greater Northern will return vacant
properties to the tax rolls immediately, and
increase their value over time.

12. Greater Northern works
closely with municipal
governments and local
community development
organizations to acquire
properties that are
controlled by the public
sector.

13. Once Greater Northern has control of the
property, the next step is to begin a
community development strategy that
would include the local government and
the residents of the immediate
neighborhood around the properties.

14. Greater Northern will determine the best use of
the property. Home ownership is always our first
choice. If it is determined that the best use of the
property is to create home ownership, then we
would move into a home ownership plan.

16. If it is determined that rental is the best use, then
Greater Northern will begin to access funding
sources with a mission to help provide rental
housing that is affordable, safe, and clean.

17. We will utilize the various resources that
exist on the local and national levels.
These programs exist to make home
ownership more affordable.
Regardless of the issues that are affecting
the housing market, home ownership is still
the American dream, and it is still the fabric
that strengthens communities.
© 2011 Greater Northern Community Investment
Group

18. Greater Northern Community Investment Group
is a development corporation whose core business
is community development.

19. http://www.gncig.com
© 2011 Greater Northern Community Investment Group

20. Greater Northern Community Investment Group is requesting debt
financing in the amount of $50,000 for a period of 12 months at a
rate of 15%. The purpose of the funds is to acquire and rehab 1
unit. The unit will be sold to a family at a below market rate price.
Our plan is to rehab 5 units in Aliquippa, Pa. in cooperation of a
local bank and the city of Aliquippa. We have chosen 2 units for
rehab, which will allow us to achieve a price point of not more than
$45,000. These units will be sold to a quailed buyer with a $44,500
first mortgage. The owners will have an estimated monthly P&I
payment of about $260. All units are 3 or 4 bedroom single-family
homes. While the project is only 25 units, these units will be
situated in a neighborhood that will impact the stability of a number
of other units and drive additional homeownership. Another value of
the project is that it will inject $1.1 million of private investment into
the community. Aliquippa, like a number of other communities in
western Pennsylvania, is suffering the loss of population. This loss
in population is causing a strain on the revenues of the city.
© 2011 Greater Northern Community Investment
Group

21. Who benefits?
The families and communities of Aliquippa
Median Household Income in Aliquippa is 38% below the state
average, 41% below the national average and 32% below the
rest of Beaver County. Estimated median household income in
2008: $30,824 (it was $25,113 in 2000). Mean prices in 2008, all
housing units: $79,966; Detached houses: $82,012;
Townhouses or other attached units: $70,117; In 2-unit
structures: $25,686; In 3-to-4-unit structures: $36,994; In 5-or-
more-unit structures: $31,919; Mobile homes: $15,349. Urban
decay in Aliquippa has had no single cause; it results from
combinations of inter-related socioeconomic conditions
including the city s urban planning decisions, the poverty of the
’
local populace, the construction of freeway roads and rail road
lines that bypass the area, depopulation by sub urbanization of
peripheral lands, real estate neighborhood redlining, decline in
the school system, and racial discrimination.

22. Project Breakdown For 1 Unit
Source of Funds
GNCIG $10,000
Investor(s) $25,000
Total $35,000
Application of Funds
Acquisition $ 1,000
Rehab $ 30,000
Fees $ 4,000
Total $ 35,000
The county and city of Aliquippa have given GNCIG control of
5 units to be rehabilitated and sold.
The loan principal and interest will be repaid from the
proceeds from the sale of the units.
© 2011 Greater Northern Community Investment
© 2011 Greater Northern Community Investment Group
Group

23. Making Home Ownership Affordable
Buyers Expense
Sales price $44,500
Down Pymt $ 2,275
Mortgage $ 42,275
Int. 5.75%
Term 30 years
Monthly Pymt $ 254.73

24. How We Strengthen Communities
Developing Creating
= Home
Tax
Ownership & Revenue for
Property Value Rental the
Property Community
Contact Us:
Foster Plaza #5 Suite 300, 651 Holiday Drive, Pittsburgh, PA 15220
Call: 412.928.4705
© 2011 Greater Northern Community Investment Group
http://www.gncig.com