Form 990 for tax year 2024

Totals

Total revenue

$11,435,858

Total expenses

$7,188,936

Contributions and grants received

$8,257,875

Grants paid

$2,535,663

Program service revenue

$2,065,129

Investment income

$1,112,854

Other revenue

$0

Total assets, end of year

$114,231,342

Total liabilities, end of year

$48,882,839

Net assets or fund balances, end of year

$65,348,503

Program services expenses (Part IX)

$5,946,837

Management and general expenses

$1,242,099

Fundraising expenses

$0

Program service expenses (Part III)

$5,946,837

Program services were 82.7% of total expenses calculated — Part IX's program-services column over total expenses, both as filed.

Line items

Every line the filer filed in Parts VIII, IX and X, as filed and in filed order. Blank columns are left out, and the lines are not forced to add up to the totals above.

Mission and programs · 2024

• Loan Origination: Neighborhood revitalization is the key mission of NFC. This is accomplished by providing a loan for repayment as well as a forgivable loan for each qualified transaction. The forgivable loan is at 0% interest with no payments and generally forgiven over 5 years. In addition, purchase and some refinance loans have a second mortgage at a 2% interest rate for 10 years instead of requiring private mortgage insurance for borrowers with less than 20% equity. NFC's loans work together to provide a mortgage that reduces the barriers of downpayment and equity while completing needed renovations of the property.In 2024, NFC closed 216 loans. Clients were served through our purchase, second mortgage, refinance and home improvement loan products as well as Polk County Large Renovation and Polk County Down Payment deferred loans. The total dollar amount of repayable loans closed in 2024 was $10,477,952. Purchase loan, second mortgage, refinance and home improvement transactions were completed in areas of Polk County and Cedar Rapids that are identified as areas for revitalization. In 2024 NFC launched a new commercial lending line of business to support the development of affordable homeownership and rental housing. There were 3 construction loans and 1 multi-family commercial loan in 2024 totaling $1,634,477.The neighborhoods are typically low to moderate (low-mod) income census tracts. In 2024, 215 primary loans (not including second mortgages, NFC Neighborhood Reinvest, NeighborhoodLIFT , Journey to Homeownership, Energy Advantage Deferred, Polk County Down Payment Assistance, or Polk County Large Renovation loans) were closed, while 152 closed were made to borrowers that were in low-mod income and/or NFC investment area census tract and/or low-mod income for Polk County, Iowa and Cedar Rapids, Iowa. Of these 215 loans, 61 loans were made to borrowers that have low-mod income and are in low-mod income and/or NFC investment area census tracts; 33 were made to borrowers with low-mod income, but not in low-mod income and/or NFC investment area census tracts; 58 loans were made to borrowers in low-mod income and/or NFC investment area census tracts, but do not have low-mod income; the other 63 loans closed were made to borrowers that are not low or moderate income or in a low-mod income and/or NFC investment area census tract. In 2024, 70.7% of repayable loans closed were to either low-mod borrowers, low-mod income and/or NFC investment area census tract or both. In 2024, 82.5% of home purchase loans closed were to first time home buyers.Though residential lending remains NFC's primary mission, residential mortgage loans closed through NFC are to owner occupants. The number of home purchase loans closed in 2024 was 40. NFC closed 21 second mortgages, 169 home improvement loans, 6 refinance loans, 38 Energy Advantage Deferred Loans, 60 Polk County Large Renovation loans (17 of 60 were NFC borrowers), and 69 down payment assistance deferred and forgivable loans (33 NFC down payment loans, 13 Journey to Homeownership (J2H) loans (6 of 13 were NFC borrowers), and 23 Polk County Down Payment Assistance loans (9 of 23 were NFC borrowers)).NFC launched a down payment program specifically for NFC borrowers in 2019. It is called Neighborhood Reinvest, and provides a $10,500 0% interest 30 year deferred loan to homebuyers earning below 100% of the area median income. Neighborhood Reinvest was created to overcome a primary barrier to homeownership for low and moderate income households. The deferred loan can be used towards down payment and closing costs assistance for eligible homebuyers who purchase a home utilizing NFC financing in NFC 's lending areas in Polk County, Iowa and Cedar Rapids, Iowa. The loan is structured as a 'soft second' mortgage loan that is deferred until there is a cash-out refinance or the home is sold or 30 years, whichever occurs first.In 2023, NFC launched the Polk County Down Payment Assistance Program. The Polk County DPA increases homeownership opportunities for households earning less than 80% of the areas median income. The goal is to create sustainable homeownership which results in wealth building, housing stability and stronger neighborhoods. NFC closed 23 Polk County DPA loans in 2024.In addition, in 2023, NFC launched the Polk County Large Renovation. Homeowners with household incomes below 80% of the Polk County area median income limit are eligible for a deferred loan to go towards repairs to their home. The goal is to create sustainable and safe living conditions for existing homeowners who may not otherwise qualify to make repairs on their own due to income or credit. In 2024, NFC closed 48 Polk County Large Renovation loans.Lastly, in 2023, NFC launched the Energy Advantage program, which offers a deferred loan to NFC borrowers who are adding or replacing energy efficient appliances and/or products in their home. Energy Advantage loans are offered in Cedar Rapids and Polk County, and funded by local governments. NFC closed 34 Energy Advantage loans in 2024.

  Expenses $1,790,079 · Revenue $1,866,097

• Forgivable Loan: As stated in loan origination description, each transaction that NFC provides to our borrowers includes a forgivable loan for property rehabilitation. The forgivable loan is a 0% interest rate loan for either 5 or 10 years. A 5 year forgivable loan is granted on all single family dwelling transactions. A 10 year forgivable loan is granted on all transactions that are downsizing a multi-family dwelling back to a single family dwelling. There is no repayment required on the forgivable loan as long as the borrower is residing in the home. The forgiven amount is reported to the borrower on Form 1099C each year until the entire amount is forgiven. Since inception, NFC has awarded forgivable loans totaling $61,377,391 through December 31, 2024.In 2024, NFC closed $1,637,810 in forgivable property rehabilitation loans and $78,000 in closing costs forgivable loans.All NFC loans for home purchase have a home inspection. In Polk County, this role is provided by a full-time renovation coordinator that is on the NFC staff. In Cedar Rapids, this is provided by a city employee. In both locations, the renovation coordinator makes sure all code violations at the property are addressed through the homeowner's property rehabilitation projects. The renovation coordinator reviews all bids for cost reasonableness and provides authorization for payout once the property rehabilitation project is properly completed and meets the borrower's satisfaction. The renovation coordinator notifies NFC when the project is completed and verifies that it was done in a workman-like manner.Additionally, these property rehabilitation projects improve the value of the homes in these neighborhoods. This can lead to increased values for other homes in these neighborhoods.

  Expenses $2,851,374 · Grants $2,535,663

• At NFC Properties LLC, our goal is to provide safe, affordable, quality housing to owner occupants. In 2024 NFC Properties LLC acquired 11 properties. Of those 11 properties, 1 was an existing home and 10 were infill lots within the City of Des Moines for new construction in primarily low and moderate income census tracts. During 2024, 5 units in NFC Properties LLC housing inventory completed rehabilitation, and 8 of the inventory units were sold. NFC Properties LLC focuses on energy efficiency by adding high efficiency furnace and A/C, vinyl Low-E windows, and blown cellulose insulation. This helps ensure that the home stays affordable for the future homebuyer.

  Expenses $264,723 · Revenue $199,032

• The Home Buyer Education services are offered in Polk and Linn counties through service agreements with local nonprofit HUD approved housing counseling agencies. These services are offered in an individual, classroom, and online format. NFC refers home buyers for home buyer education and existing homeowners for financial/debt management and budgeting. During 2024, NFC, through our partner organizations, provided home buyer education to 95% of home buyers, and budget and credit counseling and education to 8.6% of existing homeowners. In total, 18.6% of NFC borrowers received education and/or counseling through our partner agencies. Education was completed through HUD approved housing counseling agencies in Des Moines and Cedar Rapids, Iowa, or through HUD approved online platforms.NFC has agreements with the City of Des Moines (the city) and Polk County (the county), wherein the city and the county agreed to contribute money for the specific purpose of funding neighborhood housing revitalization programs. Under the agreements, cumulative contributions by the city and county have totaled $33,537,687 and $32,285,687 respectively, through December 31, 2024. During 2022, the city and the county extended their agreement until June 2027. The city and the county will each contribute at least $1,000,000 annually through the year 2027. NFC Cedar Rapids LLC has an agreement with the City of Cedar Rapids, wherein the City of Cedar Rapids agreed to contribute money for the express purpose of funding neighborhood housing revitalization programs within the City of Cedar Rapids. Under the agreement, cumulative contributions by the City of Cedar Rapids have totaled $6,000,000 through December 31, 2024. The City of Cedar Rapids will contribute at least $500,000 annually through the year 2028. Except in fisal year 2024, NFC declined the payment due to city budget constraints and NFC having enough capital for forgivable loans and reserves.NFC has agreements with the City of West Des Moines, City of Urbandale, and City of Windsor Heights, wherein they each agreed to contribute money for the specific purpose of funding neighborhood housing revitalization programs. Under the agreements, cumulative contributions by the City of West Des Moines have totaled $1,600,000, cumulative contributions by the City of Urbandale have totaled $296,000, and cumulative contributions from the City of Windsor Heights have totaled $75,000.

  Expenses $1,040,661

As filed on the 2024 return. The filer continues this part on Schedule O, which is not shown here.

Listed in Part VII

Compensation is as filed in Part VII: reportable pay from this organization and from related organizations, other compensation, and hours per week. The total, marked calculated, is our sum of the three dollar columns, with a blank column counted as $0; the form itself has no total. On a Form 990-EZ the columns are Part IV's instead, and on a Form 990-PF Part VIII's — compensation, contributions to benefit plans, and expense account — and the total sums those. A Schedule J breakdown is as filed: base pay, bonus, other, deferred compensation and nontaxable benefits from this organization, with any from related organizations beside each, and the filer's own total. It is shown with the Part VII listing of the same name on the same return. The form gives no key between the two, so that pairing is ours, and is marked matched by us.

Schedule J

Part I's answers as filed. A line not listed was left unanswered; on lines 1a and 3 that means the box was not checked.

Grants on this return

No itemized grants to organizations on this return.

Taxable family on this return

Schedule R Parts I, III and IV, as filed. These record ownership and control, not shared board members or money moved.

Provenance

Return type

form_990

Tax year

2024

Filed

30 October 2025

IRS schema version

2024v5.2

Source object

202543079349301569

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