Thursday, July 7, 2005
Homeownership in the Texas Lower Rio Grande Valley is alive and well, thanks to a partnership between the Community Development Corporation of South Texas (CDCST), Tejas Community Credit Opportunities Inc. and Amigos Del Valle Inc.
House in progress. |
The opportunity arose when Tejas Credit Opportunities Inc. and Amigos Del Valle Inc., each received a Rural Housing and Economic Development (RHED) grant but encountered difficulties in allocating their funding. Consequently, the projects stalled. To jump-start the projects, two San-Antonio HUD officials - Marinella Murrillo, Community Planning and Development (CPD) Representative, and Richard L. Lopez, Program Colonias Specialist Office of Departmental Operations and Coordination (ODOC) - facilitated a collaborative working session with local nonprofit leaders.
House in progress. |
Through this collaborative effort Richard and Marinella brokered a community-based strategy that prevented the recapture of RHED grant funds. The solution provided the opportunity for Tejas to provide long-term flexible financing while Amigos Del Valle provided principal reduction in the form of forgivable loans. The strategy also introduced CDCST as a joint lender and general contractor. This solution proved successful in deploying the RHED funds and increasing affordable housing opportunities in two rural Hidalgo communities.
The community-based strategy resulted in the following accomplishments:
- CDCST constructed 23 new single-family homes in the rural communities of Elsa and Mercedes.
- Tejas and CDCST originated below-market mortgages in excess of $2.1 million.
- Tejas and CDCST leveraged over $745,000 in public and private financing.
- CDCST and Amigos del Valle originated $160,000 in forgivable loans for principal reduction.
- CDCST provided over 90 hours of homebuyer education and counseling.
Due to the collaborative effort of Richard and Marinella, local officials and community-based organizations funding was leveraged, and technical assistance was provided that resulted in 23 families to become new homeowners.
A finished house. |
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