Questions about NACA: Round #2

Apologies for the delay in this next installment. I was unexpectedly out of town...

What's your experience with NACA's rehab department, HAND?

Not good--not good at all.

But before I launch into my tirade, let me give a little background: NACA members have the option of taking out rehab loans for their property at either a lesser, equal, or higher amount than the amount of their mortgage. Both loans--the mortgage and the rehab funds--get rolled into one payment. We took out a rehab loan worth a quarter of our mortgage loan. Follow me so far?

Prior to closing, buyers are required to get 2-3 estimates on each item of work they need done. This is difficult for a couple reasons: for one, it's hard to get into a house you don't yet own and for another, it's challenging to coordinate with 2-3 contractors per job. We had many jobs but luckily, we only needed to choose two separate companies to handle them all in the end. Still, a lot of groundwork.

After closing, we were told that work on the house needed to start immediately. Our contractors needed to fill out 5-8 pages of paperwork to begin their work and another 5-8 pages to complete it and receive payment. As if the paperwork itself were not enough, the HAND department is completely and utterly incompetent.

In year or so that we've been dealing with the HAND department, staff turnover has been high. Perhaps for this reason, very few staff members know what they're doing. Staffers often contradict each other or themselves, and they rarely seem familiar with NACA's own policies and procedures. You can forget about developing a relationship with someone in the department because they will either leave before you get a chance to call again or not remember you at all, despite the fact that you spoke for 15 minutes the day before.

(Can you tell I hate this part? Steve has often felt violent after hanging up with HAND; I relate.)

The very real consequences of this staffing problem come into play when it's time for contractors to get paid. In short, it takes forever. Both of our contractors have told us they will never again do a NACA job. My friend Michael, a contractor, said he will never again do a NACA job after he spent hours of his life on the phone with the idiots at HAND--and he's the one who recommended NACA to us!

So, I would not recommend getting a substantial loan for rehab from NACA. I'm glad we got ours--annoyances aside--because we would not have been able to afford the repairs out of pocket, but I am thankful that they were relatively small, done by two contractors and completed within six months of closing. I have a friend who took out upwards of $40K in rehab and her experience has been, it seems, a nightmare.

I hope to never interact with the NACA HAND department again.


I'm working with the NACA program now in Baltimore, and I want to give up. No one returns your calls or e-mails, and the turnover is so terrible you end up working with several counselors before you can close.

I've heard people in other cities, besides Baltimore, voice similar complaint about NACA offices. Just like any business, I'm sure much of the experience depends on the staff. I found Buffalo's office to be responsive, helpful, and reasonable both before and after we closed. Good for us, I guess.

When we were wrapping up with our counselor John and moving on to work more appropriate for our NACA-paid lawyer, I definitely got the sense that our progress was freeing up room for more people. John is no doubt a busy guy so I think it's even more incredible that he returns my calls.

All this being said, given my experience with the HAND department, I think NACA does need to do some top-level evaluation of its departments and regional offices. Inconsistency seems to prevail.

Questions about NACA: Round #1

I've compiled the questions you've asked about NACA through the comments section of this blog, over email, and through MySpace. I will answer them in a series of posts. Some of them I grouped into general issues/concerns with the program. Please keep in mind that I'm speaking about my and Steve's experience; other NACA members may have a different take on its services, positive or negative. I'll throw in a few anecdotes from friends here and there.

How long did it take you to get through the NACA process?
Steve and I knew we wanted to buy a house in the City of Buffalo but beyond that, we were clueless. We were leaning to the West Side but were also willing to consider properties closer to the Canisius College area and Black Rock/Riverside. In our hearts, we wanted a house tomorrow but in our heads, we knew it made sense to go slow.

I think this reality affected our experience with NACA in a positive way. We didn't have a neighborhood or a house in mind--as some people who contacted me do--so it didn't matter, for example, that we had to wait three weeks after our NACA workshop for a one-on-one appointment.

From finding out about NACA and attending the required workshop to closing on our house, the process took about a year. If I remember correctly, both presenters at our workshop said their process took around a year too.

While I understand the frustration associated with slow-moving bureaucracies, I think that the process NACA puts its members through is a good thing. If the goal is to give first-time homeowners mortgages that are non-predatory in their nature, fixed at low interest rates, and genuinely affordable for that buyer, then an education process is a must. NACA members are required to create budgets, accumulate savings, take care of bad debt, and be reasonable about what they can risk. This hand-holding was great for us; some people might find it annoying.

For about 4-5 months, all Steve and I did was save money, pay bills on time, and check in every couple of weeks with our counselor John (he was very accessible). Once we had enough money saved--that magic number was determined early on--we got hooked up with a real estate agent. About two months and many homes later, we found "it" and made an offer. After that, everything moved along well.

(I can't say express enough how grateful I am for taking this process slow. It's the biggest investment I made; I'm glad I looked at 15 houses and had enough money saved to buy paint supplies after closing.)

I think the slowest part of the NACA process is accumulating enough savings and credit. For those of you hoping to speed this part up, come to your first appointment with money in the bank and a budget already created.


What's your relationship like with NACA post-closing?
This is a two part answer because there are really two relationships to consider: that with our local NACA office and counselor, and that with the NACA rehab department (known as HAND). I will get to the HAND stuff in another post--trust me, I've got a lot to say!

Regarding the local office: each member is required to participate in two NACA "actions" per year as an agreement of his/her membership. These actions aren't enforced with an iron fist and I suppose if you wanted to blow them off completely, you probably could. That would also make you an ass.

The "actions" are pretty diverse and include the following choices: office work, speaking for ten minutes at a workshop about your experience, attending an advocacy event, and putting a lawn sign on your front yard. You can also sit on a panel and review current requests for NACA's Neighborhood Stabilization Fund loans from other members. We did this last one a couple months ago and it took an hour.

Beyond the actions, I've had very few reasons to call our counselor John post-closing. I did reach out to him regarding my trouble with CitiMortgage and he had some helpful advice. I would not hesitate to call him again if needed. Around the time I was having trouble with the bank, a different NACA rep from out of town called me to check in and see if things were going ok. They frequently monitor the status of member's loans and will check in if things look hairy. Luckily, my problem was finally resolved the day before so I didn't need his help. Still though, I appreciated the call.

Q&A on NACA

There have been a lot of requests for our "honest take" on NACA in the comments section of this blog. I'm going to respond to them in a post on this blog over the next couple days.

If you have any lingering questions, please post a comment to this post and I'll include it. Thanks!

Do not get a mortgage with CitiMortgage

I am, at the moment, on the phone with a representative and I am crying. I cannot tell you how many times I've talked with someone who was going to "clear everything up" only to have the same conversation 2-3 weeks later.

NACA mention on NPR...

Bruce Marks, CEO of NACA, was on NPR's "Morning Edition" this a.m., discussing the mortgage meltdown and Countrywide's loan adjustment program.

Go NACA!

Homeowner club

It seems like a lot of people I know are buying houses. My boss and her husband just bought their first, as did my and Steve's friends Eric and Rebecca. A couple other folks are in the midst of the NACA process too, soon to be homeowners themselves.

One thing that's struck me these first couple months is all the money we're spending on stuff like lawnmowers, sump pumps, and hoses. Sometimes these purchases can be delayed but more often they are of the immediate variety. For instance, the basement has flooded. For instance, the grass is 3-foot high. For instance, the basement flooded again.

With all this in mind, Steve and I recently sent out an email to our homeowner friends, suggesting that we create an informal list of household and yard tools that we wouldn't mind sharing. We volunteered use of our painting supplies, Steve's toolkit, yard & garden tools, and lawnmower. I suggested too that we think about purchase bigger items as a group, like a ladder.

I grew up on a tight-knit block and borrowing stuff from the neighbors was a regular event. Anyone out there have experience with this sort of communal sharing of tools?

Here Comes the Neighborhood

I moved back to Buffalo in March 2006 after a year of living on a farm and travelling all over the damn planet. At this point I knew Steve and I were going to actually make good on our "house idea" and so I did what any rational person would do: I tried like hell to make friends.
One day at the coffee shop, I picked up a copy of Artvoice, Buffalo's free weekly, and on the cover was a group of men and the headline, "Here Comes the Neighborhood." I quickly understood that it was about housing in the city--something I knew I should learn about because hey, I was looking to buy a house in the city--and began reading the cover story. The project sounded interesting and necessary, the issue riled me up, and after reading that PUSH Buffalo needed volunteers to help clean out its first cooperative house, I dialed their number.

Aaron picked up that day and gave me the run down on volunteering. I showed up, got really dirty while tearing out some old flooring, and met my dear friend Michael Gainer for the first time. Michael not only told me about this thing called deconstruction and this organization he hoped to start--tentatively called Buffalo ReUse--but he also told me about NACA. I went home that day and called Steve.

The rest is history.

I have a point though in retelling this history: I owe PUSH Buffalo my every happiness! Steve and I quickly identified PUSH and its members, organizers, and supporters as the community of which we wanted to be a part. Through volunteering five or six Saturday mornings at the PUSH house--Steve would drive an hour and a half just to paint some walls--we then found other communities, other friends, other paths. I'm sure we would've eventually found our ways to where we're respectively at today but the process probably would've been longer and less fun.

Hell, I met my boss at a PUSH barbecue!

With all this mind, I implore anyone in the New York City area to come on out to the PUSH fundraiser party in Manhattan on June 9th:



I will be there, working off my debt this amazing organization. If you're interested in hopping a bus from Buffalo to Manhattan for the party, give me a shout: whitneyarlene@gmail.com.

Scenes from our closing day

At 9 a.m. yesterday we had our final walk through of both houses. I don't know about Steve but I was definitely resisting the urge to run around from room to room and say, "Do you think "Aqua Bay" works in here? The light is great!" and other stuff that would probably bore our Super-Agent Wendy. So, we maintained our cool while she was there, only showing hints of our excitement, like when Steve got to lock the door himself (above).


We then posed for multiple pictures in front of our house, blocking out the HUNT Real Estate sign when Wendy took the official Realty USA photograph. Check out the stained glass window behind my head--pretty awesome. Wendy said she'll send a postcard with our photo to our new neighbors. No doubt they'll think, "Who is that 12-year old girl and her awkward dad?"


Presents! Wendy opens the gift we got her while Steve holds the basket she gave us. Fresh fruit, bottle of wine, and small Lindor truffles--yum. We gave Wendy a certificate for a nice dinner at nearby Left Bank.


After Super-agent Wendy left, Steve and I went back into our house and did some measuring. I promptly did the "we're alone I can dance silly if I want" dance. This was the first time we could go in the house without a realtor or home inspector.


Around lunch time we picked up some loot from the hardware store for this weekend's awesome painting party: rollers, brushes, and paint trays. The clerk at the store gave us some very informative information about paint supplies, including the new Teflon rollers. Just ready for a post on painting supplies.


We also picked up a broom and a mop. Steve told me about these Mr. Clean "magic sponges" that release a chemical so awful and effective that his parents decided not to repaint a wall after wiping it down with the magic sponge. They didn't have any, we'll continue looking. I should note now though that I completely plan on having a wash-windows-with-vinegar-and-water house, free of most chemical cleaners. I just want the heavy duty stuff for an initial cleaning.


At 2:30 we went over to the NACA office and met our lawyer, Dena, in person for the first time. She was great, a total hustler. Steve and I learned much from Dena in the two hours we had with her, including "CYA: Cover Your Ass," and the names of Italian cookies (below). Whenever we feel like wusses on the phone with contractors or banks, we're going to channel Dena and kick ass.

I also signed my name twice on one document. Once above my name and once above Steve's. I thought Dena might kill me but she just called me an ass. We love her!


We also bought a tray of Italian cookies from Romeo & Juliet's for the folks at NACA and totally ate some while we signed our 360 pages of documents.


We finished up our closing around 4:45 p.m., hands tired from signing, and hauled ass to the paint store. As you can tell from Stephen's joyful expression, closing wasn't all that stressful itself. It was the before-work and the running list of after-work that makes us tired, tired people.

As the last piece of paper was signed, Dena said, "Congratulations, you're now in debt!" Yay!

The waiting game

"Roofers wide view" originally uploaded by amiev

Because we're going through NACA, we've got to get estimates done on all the repair work included in our loan application before we can close on the house. As our NACA counselor told us, the bank isn't going to give you a blank check. Fair enough.

So far our strategy has been divide and conquer: Steve is responsible for getting the furnace estimates and I'm handling the roofers. We're tag teaming the home insurance quotes and it's going okay. Actually, it's sometimes a huge pain the ass. And Steve has some telling commentary.

It's sort of difficult at this point to know what to do. Will I regret in three weeks that I didn't start packing up all my shit last weekend? Or should I wait and take care of it when we have a better sense of our closing date? Is it too early to decide on paint colors or to buy furniture?

It feels like Steve and I are waiting to be shoved in the next direction, and I guess it's kind of been like that throughout the whole process. For instance, we got into a routine while looking at houses--ho hum, la-di-la--and BAM! We found the house. Suddenly we were putting an offer on the house, signing our name to a billion sheets of paper, and writing $500 checks for home inspections.

And it's not that I'm necessarily feeling a lull right now (hey, those estimates don't come from thin air), but I do believe we're doing more waiting than we are doing more doing. There's a giant list in my head--and in emails between me and Steve--of all the shit that needs to get done once we get the keys. But now, we wait? Have heart attacks?

Le sigh.

If I had a superpower right now, it would be the ability to check in with the Future Whitney and see what preparation she thinks would've been helpful. Or maybe I'll just call Steve.

I guess this should've come first

Who: Two friends named Whitney and Steve. What: Buying a house. When: Right now. Our projected closing date is in early March so cross your fingers for us. Where: City of Buffalo. Why: Because it's cheaper than renting; because maybe another owner-occupied property on the block will bring some more stability to a neighborhood that needs it; because it's the American Dream, or something. And lots of other reasons too--stay tuned. How: The Neighborhood Assistance Corporation of America.

You say “Naahh-cah,” I say “Nya-Cah”

Our friend Michael the contractor told us about the Neighborhood Assistance Corporation of America (NACA). He found out through his landlady at the time, a 21-year-old homeowner named Komani. After causing one too many mortgage lenders to break into hysterics at the regular old banks—you’re how old? You want to buy what? Ahahahaha!—Komani decided to give NACA a try. She is now the proud proprietor of a three-story, brick beauty close to downtown Buffalo. She also works at Righteous Babe Records and has a lime green dining room—you want to be her friend, trust me.

Steve and I decided to find out more about this NACA program and soon found ourselves signed up for a three-hour workshop that would serve as an official (and required) introduction to the organization. We saw an inspirational, if not borderline propagandized, video on the origins of NACA and left as True Believers. Here’s what the “History” page at NACA’s website has to say:

The Neighborhood Assistance Corporation of America (NACA) is a non-profit community advocacy and housing services organization. NACA’s confrontational community organizing and revolutionary mortgage program have set the national standard for effective neighborhood stabilization programs that make home ownership a reality for working families.

The confrontational community organizing they’re referring to is THIS and THIS. They basically spent lots of time camping out in the corporate offices of predatory loan lenders (i.e. the former Fleet bank). Anyway, NACA’s requirements aren’t ridiculous but the process is designed to be slow-going and extensive. Unlike the predatory loan lenders they’ve fought against, NACA doesn’t want you to buy a house you can’t afford.

To be sure that their members don’t get stuck with a money pit—well, an extraordinarily deep money pit—there are numerous checks throughout the process. For instance, we had to make a budget and submit our monthly pay stubs, our bank and credit card statements, our credit reports—our ENTIRE financial history, in short. If we hadn’t been paying our credit cards on time, our counselor would’ve told us he wanted to see six months of on time payments. That kind of check. Another example: when we finally found a house, we had to get our housing inspection approved by NACA so that they could determine if we were getting too much or just enough to handle.

NACA pays for your attorney fees and the search and survey of the property. All their counseling—including credit resolution—is free and if all NACA counselors are like ours, you’re in for a treat as sweet as a hot fudge sundae with whipped cream. (Actually, there’s an ice cream shoppe right next to the Buffalo office. To us, this made NACA even better/more credible.) The organization doesn’t pay for any home inspections and you will have to save up some cash for things like a deposit, first home insurance payments, and taxes. Not one to be thoughtless, NACA counselors make sure you’ve got this money in the bank before they pre-approve—before you can even begin working with a realtor.

The full version of their services is available here.

Sound too good to be true? Well, Steve and I definitely left our first workshop feeling like somewhere, in the fine print perhaps, they were going to want each of our first born babies or maybe the ashes of our favorite dead relative. We wondered, What’s the catch?

Here’s the catch: You’ve got to live in your house for the life of your NACA loan but can rent out any additional units AND You can’t own any other property when you apply for the NACA loan AND There are certain limits on income levels so all you rich muthers need not apply AND You’ve got to participate in something like five NACA “actions” a year.

NACA actions include sticking a sign on your front lawn, saying that you bought your house through NACA. Great, we thought, this will fit in wonderfully with the seven other signs we’ll have on the yard during election season—no prob! Occasionally, we might be asked to speak about our experience at a NACA workshop. Again, we were on board: I love talking about myself and my feelings, I thought, I’ll be there anytime you’ll have me! Me, me, me! Yet another possible action would be participating in a demonstration against whatever evil, neighborhood-destroying force NACA has designated the enemy. I don’t think I have to explain too much: this action resonated deep within our communist-hippie souls and we both stood up in our chairs, began shouting the What-Do-We-Want/When-Do-We-Want-It chant without even knowing what we wanted, or when we wanted it. Sold! We were sold.

But seriously, if you care about your neighborhood and you’re not a schmuck, the required participation is nothing but common sense. With that, I demand that you check out a NACA near you. Tell them Whitney and Steve sent ya and that our enthusiastic recommendations should count for at least one year’s completion of required NACA participation, dammit. And then go get some ice cream.