Project Neighbors was founded in 1969 on the basic premise that Black home ownership is a critical building block to addressing all other disparities. In the early years, White families subsidized Black families in Valparaiso in both gaining and paying mortgages. Over the years, we’ve expanded our focus to strengthen other social goods (including childcare, educational, and health care institutions) in addition to building affordable housing. But the gulf between Black and White home ownership has continued to grow and – as the wealth of homeowners is 80 times that of renters – so has the wealth gap. This continued disparity caused Project Neighbors to re-commit to address racial equity through deliberate activities and partnerships around housing, education, and justice systems in Valparaiso. To explicitly focus on the building of Black wealth and to closing the growing gap, we established the Freedom Recovery Fund (FRF).

Led by Project Neighbor’s Black Board members and staff, the FRF is a sustainable and comprehensive resource for the Black community in Valparaiso. The FRF supports projects and activities that address the policies and practices that lead to systemic racial inequity. FRF funding is allocated as follows: 60% to long term capacity projects focused on the development of Black wealth; 30% to short-term emergency relief, primarily through micro-loans and grants; and 10% to provide advocacy/legal assistance.

In addition to their pivotal role within Project Neighbors, the Black leadership of the FRF encompasses a wealth of expertise, experience, and history that is invaluable in shaping the work supported by the Fund. Among them, they:

• are former and current administrators, professors and leaders at Valparaiso University;
• are leaders of the Northwest Indiana African American Alliance;
• provide consultation on racial equity across the country;
• founded the first majority Black church in Valparaiso;
• host a local weekly radio show directed to the Black community;
• raised children in Valparaiso schools and are active in addressing racism there;
• serve as mentors to young Black residents of Valparaiso, and;
• are part of one of the first Black families – and homeowners – in Porter County.

Long Term Support – Individual Development Accounts (IDAs): Home and business ownership, along with education, are critical pillars of maintaining a healthy community, and are key elements of building wealth. In Valparaiso, only about 17% of its Black population (of about 1500 people) are homeowners, and even fewer own their own businesses. Further, Black students enrolled at the college or university level overwhelmingly identify financial constraints as the number one non-academic reason for leaving before graduation. These realities lead to a dearth of economic prosperity and generational wealth acquisition in the Black community. The FRF has determined that a directed and intentional intervention is needed.

The FRF IDA initiative has, in its initial year, identified Black individuals through an application process, to support in the process of wealth acquisition and conservation. The FRF has entered into a partnership with 1st Source Bank that has both provided a financial grant to the program and has organized the financial training and mentorship for its participants.

The FRF will, for participants who meet the requirements, match up to $2000 saved per person during a year on a 4 to 1 basis. This opportunity is focused on individuals who are:

• future homeowners working toward down payments;
• current business and homeowners who need to rehab or expand;
• future business owners in need of seed capital; or
• individuals seeking financial support to further their education/training opportunities.

Participants were selected through a thorough application process, and each will need to meet the savings requirements and complete the financial training provided by 1st Source. The first cohort is well underway and a second is anticipated to be chosen in the fall.

Emergency Grants and Loans: Though building for the future is the primary focus of the FRF, ensuring that people make it to tomorrow requires dedicated resources. Many of the obstacles that Black people face are either a reduction in income (i.e., furloughs, layoffs, etc.) or unforeseen financial shortfalls (births, deaths, major maintenance, accident, sickness, etc.). Regardless of the personal needs, there is usually a contributory systemic issue, whether that be wage disparity, unfair ending practices, or other racist policies that inhibit wealth attainment for Black people. The FRF is addressing these needs through small grants and loans, while also working on the systemic policies.

Advocacy Assistance: Many of the oppressive barriers that the Black community faces are directly or indirectly related to legal quandaries. The FRF is committed to assuring that Black people have access to legal assistance for help with wills, deed documentation, and more complex problems such as moving violation citations and wrongful terminations. The FRF is partnering with the Black community to assemble legal resources and make them available.

Special Projects: The FRF will also take on special projects and initiatives of relevance to the Black community in Valparaiso. Currently, the FRF has received donations expressly to support initiatives by young Black entrepreneurs.

Sustainable Funding: It is critical that the Freedom Recovery Fund has a base of sustainable funding. This funding is accomplished through:

• monthly contributions committed to by individuals;
• monthly allocation from Project Neighbors core funding;
• one-time contributions from individuals and foundations (including a significant grant from FRF’s partner bank, 1st Source).

Individual Development Account initiative workshop.