Development of a GREAT Neighborhood

The GREAT Neighborhood model is planned and developed by the sponsoring church or local ministry in partnership with ND Ministries and other non-profit/ministry partners. The development process of a  GREAT Neighborhood, which may take up to two or three years, is an important part of creating the strong relationships and community expectations that will sustain the GREAT Neighborhood in the long run. ND Ministries provides facilitation and technical support throughout all phases of the process, which include real estate development and construction, neighborhood finance structuring, and ongoing operations services.

Real Estate Development and Construction
The development process begins with a resident core group with vision and plan for a GREAT Neighborhood.  The resident core group leads the development process through a separate non-profit corporation Sponsor. The Sponsor, with support from ND Ministries and other non-profit/ministry partners, undertakes and orchestrates the process of development of the GREAT Neighborhood  from beginning to end.  The process organizes the development team to acquire the land, undertake a permit, environmental, zoning, utility and site planning review, finalize design and construction documents, and select and manage a general contractor to build the project.

Neighborhood Finance Structuring
The development process also involves creating a financing plan to cover the cost of creating a GREAT Neighborhood. ND Ministries will assist the Sponsor in acquiring funding from public and private lenders, investors and other funding sources. From the cost estimates that are created for developing the neighborhood, budgeted finance plans are created for acquiring the upfront and ongoing resources necessary to build and operate the GREAT Neighborhood. The financing plan is simultaneously developed and is used to solicit and secure commitments from construction and permanent debt lenders, equity investors, home buyers, and public soft debt and operating subsidies. Homeowner purchasers usually are required to provide their own down payment and other financing. Once a final construction price is determined, the final financing for construction is committed and funded.

Ongoing Operations Services
The development process includes post-construction planning for the operations and management of the real estate assets of the GREAT Neighborhood.  ND Ministries provides planning and management services that cover the financial budget and asset management, as well as the physical upkeep and maintenance of the GREAT Neighborhood facilities.  With assistance from ND Ministries, the Sponsor will learn to manage ongoing financial planning, budgeting, and accounting, comptroller management functions, rent collection, and investor and regulatory reporting requirements.  The core resident group will also receive support as the Sponsor leads coordinates the ongoing site and property management, neighborhood policy enforcement, marketing, leasing and building and grounds maintenance.