Tuesday, Aug 9 2011 12:45PM
The CDFI grants will be used by nonprofit organizations to help make mortgages more affordable for low-income residents.
In the latest round of funding, nearly $17 million in grants from the U.S. Department of the Treasury's Community Development Financial Institution (CDFI) program was provided to 19 nonprofit organizations affiliated with NeighborWorks America to make mortgages more affordable for consumers.
The nonprofit organizations will use the grants to provide down payment assistance to qualified first-time homebuyers who have completed homeownership education classes, capital to support the construction and management of affordable housing units and financing to support business loan products.
"CDFI funds play a critical role in the NeighborWorks network's efforts to create strong communities and sustainable affordable housing," said NeighborWorks America CEO Eileen Fitzgerald. "They offer appropriate lending products to low- and moderate-income homebuyers and local businesses at a time when other financial institutions have limited products available."
Rural Community Assistance Corporation (RCAC) received a $1.5 million CDFI award (the largest amount awarded under this program). The award enables RCAC to increase lending activity and enhance its capacity to address escalating rural community needs in the West.
One state that will receive funding to help improve mortgage affordability is Hawaii. The CDFI grants will help the Honolulu HomeOwnership Center offer down payment assistance loans and create a loan loss guarantee fund.
In July, more than $28 million in CDFI grants was given to credit unions to help them offer more affordable lending products to low-income communities.