WASHINGTON, Aug. 13, 2012 /PRNewswire-USNewswire/ -- Affordable lending and housing development around the country got a boost recently when 24 members of the NeighborWorks network received nearly $22 million as part of grants made by the U.S. Department of the Treasury's Community Development Financial Institution (CDFI) program. Combined with grants from NeighborWorks America – a community development nonprofit corporation which creates opportunities for people to live in affordable homes, improve their lives and strengthen their communities -- local governments, foundations and the private sector, these small- and medium-sized nonprofit businesses continue to lend in their local communities, and provide access to affordable loan products and services to low- and moderate-income borrowers. In total, the CDFI program provided close to $187 million to 210 organizations, including 24 that are part of the NeighborWorks network.
"CDFI funds play a critical role in the NeighborWorks network's efforts to create strong communities and sustainable affordable housing," said Eileen Fitzgerald, CEO of NeighborWorks America. "NeighborWorks organizations offer appropriate lending products to low- and moderate-income homebuyers and local businesses, which is especially important now as credit has tightened from more traditional sources."
The CDFI funding awarded this year will enable nonprofits like Affordable Homes of South Texas (McAllen), Inc. to capitalize its affordable mortgage loan fund for first-time homebuyers, and to provide consumer loans to families. CDFI funds will also enable Community Ventures Corp, Lexington, KY to expand its small business loan program for start-ups that are creating jobs in rural communities. While Neighborhood Finance Corp, Des Moines, IA will use its CDFI grant to help finance a second-mortgage program to facilitate home purchases by low- and moderate-income families.
In addition to the 24 grant recipients in this latest round of financing, there are 96 other NeighborWorks organizations with certified CDFI operations. NeighborWorks organizations use these recent CDFI grants and prior grants to increase access to credit in a variety of ways, including:
- Provide down payment assistance to qualified first-time homebuyers who have successfully completed homeownership education classes
- Provide capital to support the construction and project management of affordable homes for sale
- Provide capital to support business loan products
About NeighborWorks® America
NeighborWorks® America creates opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. In the last five years, NeighborWorks organizations have generated $20 billion in reinvestment in these communities. NeighborWorks America is the nation's leading trainer of community development and affordable housing professionals.