Neighborhood Preservation Areas

MHMFA may designate defined sectionsorneighborhoodswithin a town or city as Neighborhood Preservation Areas (NPA). Financial institutions originating Mortgage Loans for participation in MHMFA loan programs will reserve an agreed upon amount of mortgage funds for use within the NPA. Therefore, Neighborhood PreservationArea designation will insure that a specific dollar volume of Mortgage Loansis available to residents of an area. Because many structures within a confined area will be improved in a short period of time, there should be a significant impact in terms of improved living conditions and housing market within the area. Also, the commitment from the municipality for improved public facilities and services will increase the impact of the improved housing structures. The availability of financial counseling, technical assistance, and promotion of the loan program should further serve to stabilize the NPA. Areas selected as Neighborhood Preservation Areas should be relatively small neighborhoods, communities or sub-sections within the town or city in which the residents possess a sense of common identity, purpose or concern. Areas with identifiable natural physical boundaries and/or strong neighborhood organizations representing the residents of the area are good candidates for inclusion in NPA applications.