An early Bridgeport Neighborhood Fund Board meeting.

BNF's first rehabilitation loan. Arctic Street - before renovations.

New construction on Sixth Street and Stratford Avenue.

One of the two "villa" co-ops for low-income families under construction.

Residents of the Santa Fe Cooperative. New construction in 1991-1992.

One of developers John Bello's threee east end properties renovated with BNF funds

BNF Established

In February of 1986, a dedicated group of people from area banks, non-profit groups, private industry, and government agencies, created the Bridgeport Neighborhood Fund (BNF), a non-profit corporation geared to respond to Bridgeport's need for increased property investments and additional quality affordable housing. BNF was established to aid in the rehabilitation of deteriorated properties by providing loans to property owners, potential property owners, non-profit organizations, and businesses which could not obtain financing from conventional sources.

The initial funding for BNF came from a group of seven area banks. In September of 1986, these lenders signed an agreement to loan up to 7.5 million dollars to BNF over a period of three years. The subsequent success of BNF's lending and the increased demand for such financing led the same group of lenders, in June of 1989, to add 5.5 million dollars to the agreement, totaling 13 million dollars. Likewise, the agreement date was extended through June of 1992.

The First Loan

BNF began implementing the bank funding to finance loans for affordable housing in low to moderate-income areas of Bridgeport. In 1987, the organization celebrated its first successful rehabilitation of a six-family condominium conversion on Arctic Street in the east side of the city. Other projects soon followed.

A Rooming House Renovated

Many investors, like Joe Farley, found BNF's financing a crucial resource for their endeavors. Farley wanted to turn a run-down house on Coleman Street into an 18-unit rooming house, but because of the inherent risk factor associated with rooming houses, area banks would not finance a loan. In 1989, BNF provided the financial assistance that made Farley's plan possible.

"There's a real need in the city for this kind of housing," Executive Director Ann Robinson explains. "Single men and women working solidly at minimum wage jobs often can't afford even a studio apartment. A single room, with shared cooking facilities, in a well-managed rooming house is exactly what they need. Aiding projects that help the community is the basis of BNF's existence."

During its first six years, BNF made approximately 50 loans to rehabilitate nearly 400 units of housing. These loans totaled more than nine million dollars, with the individual sums averaging $200,000.

New Constructions

Although the majority of BNF's financing focused on rehabilitation, in 1989 BNF provided its first loan for new construction: a combination commercial/residential built on the corner of Sixth Street and Stratford Avenue. The same year Nuestra Casa del Pueblo, a non-profit group, approached BNF about a vacant lot on Ridge Street. Construction soon began on a two building, ten-unit "sweat equity" co-op for low-income families. The ten participating families contributed work hours and a small financial investment to become shareholders and occupants of the spacious two-four bedroom Villa units.

Tough Times

In 1991, Bridgeport's economy began spiraling downward. The national recession, banking industry difficulties, and the loss of local jobs all contributed to a drastic slowdown that damaged Bridgeport's housing market. Of BNF's original seven banking funders, four did not survive. This forced BNF to restructure its loan agreement with the three remaining lenders, and eventually led to BNF's cessation of new lending in the period from 1993-1997.

Lending Again

In 1997, Bridgeport's economic resurgence enabled BNF to enter a new agreement with six banks for the sum of 1.4 million dollars to be given over a period of two years. Due to high demands for BNF loans, these funds were utilized within an eighteen-month period, in the form of 13 loans for rehabilitation of 124 units. The bank agreement was then extended for an additional two years and 1.4 million dollars. During this time frame, BNF provided another ten loans for development of 38 additional units.

Fifteen of the 162 units rehabilitated in the last three years belonged to three East End houses. Renovations on these properties had begun years earlier when a volunteer community group decided to help improve the neighborhood. Eventually the group turned management of the properties over to BNF. In 1997, developer John Bello utilized BNF loans to purchase and restore one of these homes. The other two soon followed.

"In this situation, Bridgeport could have had these three abandoned houses becoming a real problem, but that didn't happen," Robinson explained. "Instead, the properties are occupied by good tenants. They are what they always were intended to be… people's homes."