Based on National Council of State Housing Agencies' data, we believe that figure is closer to 30 percent today. Nonprofit housing groups can be found in all 50 states and in urban and rural areas all across the nation. These locally-based organizations serve very poor households and are particularly sensitive to the unique needs of their neighborhoods. Their sustained commitment to the community makes them especially suited to undertake community development activities. In general, nonprofits have the flexibility to work in declining real estate markets, do small-scale housing development, and link social services to housing.
Nonprofits have a different set of incentives and thus can do the work no one else wants to take on.
Our use of the Housing Credit, through local nonprofit organizations, has been particularly successful as a catalyst for community-based development and neighborhood revitalization. The Housing Credit is one of the few tools available to attract capital to economically depressed neighborhoods. And it has achieved remarkable results, bringing local governments together with community-based organizations and the corporate sector to help solve urban and rural problems by providing housing, creating jobs, and renewing neighborhoods. The secret of our success has been to form partnerships with corporations, capable affordable housing developers, and state and local governments. These financing partnerships are long-lasting and extraordinarily successful because they engage the local community in a shared effort, not only to build affordable housing but also to revive neighborhoods.