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Article Archive > Texas
Lone Star CRA Fund in Dallas
This private investment partnership is being formed to make $5 million to $15 million equity-oriented investments in middle-market Texas-based companies.
As of June 2008, the Lone Star CRA Fund LP (LS CRA) has total capital commitments of $57.5 million out of a goal of $75 million. All of the funds committed to the LS CRA partnership will be invested in companies located in low-income areas of Texas.
The fund intends to bring jobs to low-income areas by investing in companies already located there or by acquiring businesses and moving them to low-income areas. LS CRA expects to complete fundraising during the balance of 2008 and plans to invest in seven to 10 Texas-based companies.
For more information, contact Arthur W. Hollingsworth, Lone Star New Markets LP, at (972) 702-7390.
Rural Economic Development Opportunities
Rural Texas may soon benefit from more jobs, greater economic opportunities, an increased tax base, and a higher quality of life through an innovative housing program tied directly to job creation in rural communities. The Texas Department of Housing and Community Affairs has released a $5 million Notice of Funding Availability (NOFA) for a new rental housing development program. The program is designed to develop affordable rental housing for low-income Texans with rural economic development projects that have been recently developed or are currently under development. These funds are available through a special allocation from the federal Home Investment Partnerships (HOME) program.
Organizations and persons that are interested in applying for funds may need bank partners to complete the development financing because funds made available under this program will provide only a portion of development costs. Eligible applicants include nonprofit housing organizations, public housing authorities, sole proprietors, and local government agencies that are seeking to develop affordable rental housing in nonparticipating jurisdictions as designated by HUD. Funds must be tied to the creation of new or expanded job opportunities currently in development or created within the previous 18 months at the time the application is submitted. Only housing developments that employ at least 10 new positions will be considered, and employment sites must be located no more than 20 miles from the proposed housing development. Applications for funding must provide evidence of a definite and long-term employment commitment from the employer.
For more information on NOFA and this new initiative, download this PDF , e-mail Skip Beaird or call him at (512) 475-0908.
[Published in News from the Districts, Community Developments, Spring 2008]
ACCION Texas - $2 Million Small Business Investment Opportunity in Disaster Areas
With the many small businesses forced to relocate after hurricanes Katrina, Rita, and Wilma, ACCION Texas is helping owners with the financing they need to rebuild their businesses and lives. ACCION uses capital provided by regulated financial institutions and philanthropic sources to lend to small and micro businesses in low- and moderate-income areas and disaster areas. Investment opportunities exist for institutions that want to participate in ACCION's programs. ACCION is planning to extend its programs to the Louisiana disaster areas and is seeking new partners to support its programs there.
ACCION Texas is a statewide nonprofit community development financial institution (CDFI) specializing in lending to micro and small business entrepreneurs. ACCION provides loans from $500 to $50,000 to businesses that are usually unable to qualify for traditional bank financing. Partnering with ACCION Texas, a participating bank reaches a clientele that it cannot serve with standard bank products. Banks can support community development and disaster recovery assistance to entrepreneurs, minority- and woman-owned businesses, and low-income communities by providing support in the form of operating grants, loans, qualified investments, and financial services to ACCION Texas. For more information, contact Janie Barrera at (210) 507-4283 or e-mail jbarrera@acciontexas.org
[Published in News from the Districts, Community Developments, Spring-2007]
New Markets Tax Credit Investment Opportunity
Lone Star New Markets LP (LSNM), a community development entity (CDE), was awarded a $10 million tax credit allocation from the U.S. Treasury's New Markets Tax Credit Program (NMTC). The managers of the Dallas-based fund intend to raise $25 million in investment capital and will co-invest with Lone Star Growth Capital LP (LSGC), a $15 million fund. The fund managers intend to secure $40 million in commitments for their funds by the end of the third quarter. LSNM, which had its first closing in January 2006 for approximately $16 million, provides investment capital for businesses located in underserved communities in Texas. LSNM and LSGC will make $1 million to $10 million equity-oriented investments in private middle-market companies located in low-to-moderate income areas in Texas. LSGC investors will receive a stated preferred dividend on invested capital.
For more information, contact Arthur W. Hollingsworth, Managing Partner, Lone Star New Markets LP, at (972)702-7390, or visit the Fund's Web site at www.lonestarnewmarkets.com.
[Published in News from the Districts, Community Developments, Winter 2006-2007]
Texas Association of Community Development Corporations, (TACDC)
The Texas Association of Community Development Corporations, (TACDC) is a statewide membership association of 138 non-profit and for-profit Community Development Entities (CDEs), banks, and other companies committed to serving low- and moderate-income (LMI) individuals and communities. This membership forms a statewide network serving both urban and rural areas of Texas. Its members are developers of affordable housing and commercial real estate and provide small business and economic development loans. Others provide home mortgage and home improvement financing and consumer education. Many national banks currently partner with CDEs to help serve the credit needs of their entire communities, including LMI areas. TACDC's membership continually strives to create an environment that fosters cooperation with banks and the private sector to stimulate neighborhood revitalization and improvement in the quality of life for low income Texans.
To find a CDE in your area or to access information on one of the Texas CDEs, please visit the TACDC web site at http://www.tacdc.org or call (512) 457-8232.
[Published in News from the Districts, Community Developments, Spring 2006]
CD Investments in Houston, Texas
Banks interested in participating with Houston area banks to make community development investments can contact one of the multi-bank community development (CDC) entities. Created and operated by bankers, they provide financing and expertise for community development lending, investment, and services activities. These include: affordable housing, financing for small businesses, area revitalization and stabilization, and support of other community services and facilities that primarily benefit low- and moderate-income families within the CRA assessment area of participating banks.
Area multi-bank CDCs include:
Houston Small Business Development Corporation (HSBDC) at (713) 845-2400 or info@hsbdc.org; Third Coast CDC at (713) 503-5124 or thirdcostcdc@aol.com; and Texas Mezzanine Fund (TMF) at (214) 943-5900 x 101 or Jreid@tmfund.com. Other Texas cities with multi-bank CDC investment opportunities include Austin, Brownsville, Dallas, Fort Worth, Houston, McAllen, and San Antonio.
[Published in News from the Districts, Community Developments, Summer 2005]
One-Stop for Economic and Community Development
Houston area bankers now can refer loan prospects to a one-stop service to finance and structure community development projects. The Revelation Urban Development Institute (RUDI), a nonprofit incorporated in April 2002, helps eliminate the mistakes that cost time and money according to its president, Steve Brown. Bankers, who participate in the program by making investment commitments, lending commitments, or both, can also refer prospects to the organization for financial analysis and loans packaging. The organization has years of lending and development experience, assuring investors that all elements of the project proposal are strategically and economically sound. They package the project for land acquisition, construction, or rehabilitation of single or multi-family residences, senior housing, retail commercial or faith-based facilities that serve the needs of low- and moderate-income (LMI) individuals and areas. Its primary goal is to improve the quality of life for LMI families by stimulating community and economic development projects. In the process, they work to increase the capacity of community-based groups (both community-based organizations (CBOs) and community development corporations (CDCs)) to develop affordable housing by providing expert technical assistance and resources. They also develop housing as a joint venture with CDCs and they operate independent community development projects. The organization is a community housing development organization (CHDO) certified by the City of Houston and Harris County.
For more information, contact Steven Brown at (713) 503-5124 or by e-mail at: revelationLLC@aol.com.
[Published in News from the Districts, Community Developments Investments, Summer 2005]
Fort Worth Central Community Development Corporation
Fort Worth Central, a newly-formed multi-bank community development corporation (CDC), allows banks to lend and invest in markets that are often difficult to efficiently or effectively reach. The CDC will offer low-cost loans to the city's homebuyers with annual gross incomes of 50-to-80 percent of the area median income. Local nonprofit housing development organizations will work with the City of Fort Worth to deliver homeowner training and education. The initial loan products offered by the CDC include home improvement loans, renovation/refinance loans, and purchase/rehabilitation loans. The organization's business plan describes a five-year $15 million equity investment goal in a loan fund that is enhanced by the City of Fort Worth's commitment to loan guarantees and subsidies.
For more information, contact Karen Meunier with the City of Fort Worth Housing Department at (817) 392-8091; karen.meunier@fortworthgov.org.
[Published in News from the Districts, Community Developments Investments, Winter 2004/2005]
Multi-Bank CDC Stimulates Economic Development
This multi-bank community development corporation (CDC) was formed in 1998 by a coalition of five visionary banks. Collectively, they invested approximately $1 million to capitalize the organization. Over the last five years, six additional banks have become investors, bringing total capitalization to about $1.5 million. The corporation intends to stimulate economic development in Harris and surrounding counties by providing loans to small emerging businesses that may not currently qualify for conventional bank financing. Through its network of investor banks, the organization can access capital for loans up to $1 million. The current challenge is to increase the capital base to $5 million. The corporation currently has reached 70 percent of its lending capacity and could reach 90 percent by year-end. They have no delinquencies on their outstanding loans. The credit committee is composed of experienced bankers, who have a flexible approach to credit requests. "We understand that every business transaction is unique," says Steve Brown, President/CEO. "Our creative and flexible underwriting provides solutions." Third Coast would like to double its capital over the next 12 months, and then double it again within the following twelve months.
For more information contact: Stephen K. Brown, President, Third Coast CDC, (713) 503-5124 E-mail: thirdcoastcdc@aol.com.
[Published in News from the Districts, Community Developments, Fall 2004]
Texas: Colonias Initiatives
More than 340,000 Texans live in impoverished rural colonias where the need for decent affordable housing is extreme. The state Office of Colonia Initiatives can help residents convert residential property purchased under real estate contracts to fee-simple ownership financed by a conventional mortgage. Fee-simple ownership allows owners to seek funding for construction, rehabilitation and other benefits linked to real property ownership.
For additional information about the Contract for Deed Conversion Initiative, contact Homero Cabello with the Office of Colonia Initiatives at (800) 462-4251.
[Published in News from the Districts, Community Developments, Spring 2003]
Microenterprise Lending in Texas
ACCION Texas is the largest micro lender in the U.S. for the second year in a row - having originated 4,192 micro-enterprise loans and disbursed more than $22 million to clients since its inception in 1994. These loans provided working capital, inventory, and start-up funds for small businesses that could not qualify for loans from banks. In 2002, a new phrase entered the ACCION language - pink-slip entrepreneurs. "We have heard from our clients that, after being downsized out of their jobs, they never wanted to experience that kind of insecurity again. They looked around and found inventive ways to market themselves and to offer services that are needed in their communities. ACCION was there to provide the needed capital and start up assistance," according to Phillip McCammon, Chairman of the ACCION board of directors. ACCION benefits from the support of more than 20 banks and thrifts to implement their Texas strategy. Their commitment enables us to provide capital to those who need it most." ACCION Texas operates seven offices strategically located around the state.
[Published in News from the Districts, Community Developments, Winter 2003]
Statewide IDA Network Seeks Investors
The Texas IDA Network is a new statewide organization with 16 IDA sites in Houston, Austin, San Antonio, Fort Worth, Amarillo, Waco, and El Paso. Groups in the Rio Grande Valley and south Texas (McAllen, San Juan, and Brownsville) are also developing IDA programs. The network is seeking bank involvement to begin serving these and other major urban and rural areas with loan and banking services.
For more information, contact Woody Widrow, Texas IDA Network, at (512) 477-4431.
[Published in News from the Districts, Community Developments, Fall 2002]
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