Financial Troubles Plague Baltimore's North East Housing Initiative

The North East Housing Initiative (NEHI), a prominent nonprofit organization in Baltimore focused on affordable housing, is currently grappling with significant financial challenges and has become the subject of a federal investigation.

Founded over a decade ago in response to the housing crisis during the Great Recession, NEHI has aimed to stabilize East Baltimore by acquiring homes and selling them to low-income families while maintaining affordability through resale price restrictions. The organization has secured millions in government grants and private donations, building a portfolio of around 40 homes.

However, recent court documents and statements from NEHI's leadership indicate that the nonprofit's financial situation has worsened in recent years. As a precaution, the city has paused its grant funding to NEHI, following legal advice and concerns about past financial mismanagement.

According to a subpoena reviewed by The Banner, the FBI is investigating cryptocurrency donations received by NEHI. The organization is also facing a federal lawsuit for violating a contract with a lender and has encountered two federal tax liens since September.

Garrick Good, NEHI’s CEO, has denied any wrongdoing and criticized the city for suspending grant funding without allowing for a discussion of the organization’s circumstances.

NEHI has received at least $3.2 million from the city since 2023, making it the leading community land trust in Baltimore, which has four active trusts. The community land trust model is designed to combat gentrification by keeping homes affordable through shared equity agreements.

State Senator Cory McCray has previously praised NEHI’s role in the community, highlighting its importance in the future of Baltimore City.

Good, who has led NEHI since 2018, reported that the organization expanded rapidly, growing from a $50,000 annual budget to a multimillion-dollar operation. However, he acknowledged a lack of adequate financial procedures and oversight.

Financial difficulties reportedly intensified following anonymous cryptocurrency donations amounting to approximately $2.2 million in mid-2025. Federal authorities have since frozen a significant portion of these funds, complicating NEHI’s financial status further.

NEHI's financial issues predate the cryptocurrency donations, with JPMorgan Chase filing a judgment against the organization for over $790,000 due to a default on a line of credit. Additionally, the National Cooperative Bank closed NEHI’s account earlier this year for not adhering to account terms.

In light of these challenges, NEHI's board considered placing Good on administrative leave due to concerns about the organization's financial management, leading to ongoing legal disputes.

Reported by HarborBeat based on The Baltimore Banner (source).