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Norwest Cap offers to partner with Lambertville on small-scale affordable housing
Summary
Norwest Cap told Lambertville's advisory committee it can help deliver small affordable homes, estimating 5—to 7 units a year initially and seeking seed capital and municipal partnerships to make projects viable.
Mark Valley, chief executive officer of Norwest Cap, told the Lambertville Affordable Housing Advisory Committee that his nonprofit is prepared to partner with the city to produce small-scale affordable housing.
"We are ready and willing and able to be a partner," Valley said, outlining a business plan his organization is preparing for board approval. He said Norwest Cap expects to produce about five to seven units per year in the first two years as it builds staff capacity, and that production should rise thereafter.
Valley said the group has recently completed two rehabilitation projects in nearby Philipsburg and that financing for those came through a neighborhood revitalization tax credit program. He described staffing as the principal constraint to scaling and said the organization would seek roughly $25,000 to $50,000 in seed capital to get the program operating.
The committee pressed Valley on whether Norwest Cap would focus on homeownership or rental housing. Valley said the organization's early work will prioritize owner-occupied homes because that model is simpler operationally, but that the business plan includes moving into rentals after systems are in place.
Committee members noted that Fair Share reviewers and state guidance place a high priority on family rental units; the committee discussed bonuses available to municipalities that partner with nonprofits on rental projects. Valley acknowledged those incentives but said Norwest Cap's immediate capacity and mission point toward homeownership in the short term.
Valley gave a recent rehab example that ran about $300,000 and described previous ground-up work carried out with partners when tax-credit financing was available. He said Norwest Cap is also talking with other towns and veterans' groups about small projects and will share the nonprofit's board-approved plan with the committee when it is finalized.
The organization's offer adds a potential local partner for Lambertville's compliance plan and for a separate, planned six-unit Habitat for Humanity project that the committee plans to bring to the city council for support.
Next steps: Norwest Cap will finalize its business plan with its board and provide the committee with the plan when available; the committee will continue outreach to other nonprofit partners and include potential municipal supports in its compliance plan work.
