St. Paul, MN – February 13, 2012 – (RealEstateRama) — Today, Congresswoman Betty McCollum announced that St. Paul neighborhoods recieved $459,000 in housing grants through the Federal Home Loan Bank of Des Moines Affordable Housing Program (AHP). The funds will be used to rehabilitate and construct homes which will not only provide safe and decent housing, but also invigorate the local economy as construction and rehabilitation work begins.
“The commitment from the BankCherokee, Bremer Bank, Community Neighborhood Housing Services, and South Metro Human Services represents a beneficial, generous commitment from the fi nancial and nonprofit sectors,” said Congresswoman McCollum. “Such investments will not only benefit struggling Minnesotans in the short-term, but these grants will also strengthen and improve our community in the long-term.”
Community Neighborhood Housing Services and BankCherokee will use $159,000 in grant funds to rehabilitate 30 homes, making them safer and more energy efficient for families that otherwise may not have been able to afford the work required to make them safe and livable. “Between declining family incomes, the foreclosure crisis and aging housing stock, there is a growing need for a project like this in St. Paul,” said Jason Peterson, executive director, Community Neighborhood Housing Services. “The grant provides an incredible incentive for homeowners to complete needed maintenance work on their homes.” Community Neighborhood Housing Services provides a number of loan products to eligible homeowners and, under this program, the AHP grant funds will be combined with other funding sources to provide eligible homeowners with the necessary funds to rehabilitate their homes. The AHP grant will provide a $5,000 forgivable loan.
South Metro Human Services and Bremer Bank will use a $300,000 AHP grant to partially fund the transformation of a vacant building into a purpose-built residential treatment facility, which will provide 16 units of transitional housing for adults diagnosed with mental illness. Residents will receive an array of mental health services that will assist them with stabilization, recovery and transition into a more permanent living situation. “We are excited to create a new Intensive Residential Treatment Services building for the people we serve and believe it will be one of the best in Minnesota,” states South Metro Human Services President Tom Paul. “This new home for our Community Foundations program will allow our staff to offer critical services in an environment specifically designed for therapeutic treatment and recovery.”
Each year, FHLB Des Moines returns 10 percent of its net income to communities throughout its district through the Affordable Housing Program. These grants assist in the development of affordable owner-occupied and rental housing for very low-to-moderate income households. During its recent AHP round, the Bank awarded $15 million in grants through its member institutions including, Bremer Bank and BankCherokee, to fund 45 housing projects, which will help create or renovate 1,800 housing units across five states. Over $4.0 million was committed to projects in Minnesota. For a complete listing of AHP grant recipients, please visit www.fhlbdm.com.
The Federal Home Loan Bank of Des Moines is a wholesale cooperative bank that provides low-cost short and long-term funding and community lending to more than 1,200 members, including commercial banks, saving institutions, credit unions and insurance companies. The Bank is wholly owned by its members and receives no taxpayer funding. The Des Moines Bank serves Iowa, Minnesota, Missouri, North Dakota and South Dakota and is one of twelve regional Banks that make up the Federal Home Loan Bank System.
FHLB Des Moines
mfeld (at) fhlbdm (dot) com
Office of Congresswoman Betty McCollum
Maria.Reppas (at) mail.house (dot) gov