Mission-Driven Brokerage
Community-based nonprofits have long made homeownership possible for low- and moderate- income households. However, they have generally lacked the capacity to facilitate the sales of homes they do not own to their target populations. Where it does exist, this capacity is a referred to as mission-driven brokerage. The brokerage role has generally been played by private brokers, limiting nonprofits’ ability to influence development in the communities they serve.
Now, the foreclosure crisis has exacerbated the consequences of this lack of mission-driven capacity, sparking a sense of urgency among the community development industry—funders and practitioners alike— to either develop it or, in the few cases where it already exists, to adapt it to current market realities.
Mission-Driven Brokerage Case Study
This case study explores the benefits and challenges of developing mission-driven real estate brokerage capacity, examining the work of two nonprofit organizations—one in Los Angeles and one in New York City—that have expanded their services to include brokerage operations. Los Angles Neighborhood Housing Services (LA NHS) has operated its own real estate brokerage business since 1996. Neighborhood Housing Services of New York City (NHS OF NYC) is launching its program early this year. While the foreclosure crisis drove both of these organizations to create or adapt brokerage programs, their work will have long-term benefits as well. These benefits include: an enhanced continuum of service; correcting market failure; greater ability to compete with less scrupulous brokers; and the potential to generate additional revenue for the organization.
Mission-Driven Brokerage Case Study (PDF)
Mission-Driven Brokerage Webinar
Our Mission-Driven Brokerage Webinar featured two of Living Cities’ grantees — one in Los Angeles and one in New York, are piloting initiatives, called mission driven brokerages, to facilitate the sale of homes in foreclosure to low- and moderate- income buyers. During the webinar, Lori Gay, President and CEO of Los Angeles Neighborhood Housing Services, Michael Hickey of the Center for New York City Neighborhoods, and their staff and partners, gave presentations. They explained their work, described the challenges they’ve faced and what they've learned so far, and answered questions from the audience. Thirty-five of Living Cities’ grantees, participants and guests joined us for the webinar.