Financing For Affordable Development Obtained

SAN ANTONIO, TX - One of San Antonio's leading federal credit unions is providing the necessary capital for a a housing community aimed at serving low-income families. Security Service Federal Credit Union has closed on a financing deal with Neighborhood Housing Services (NHS), a locally based nonprofit builder and lender for affordable housing in San Antonio and Bexar County. Security Service is providing NHS with a low-interest, $1.9 million bridge loan, to go toward the development of Foster Acres.

A bridge loan is a short-term loan that allows the user to meet current obligations by providing immediate cash flow, until more permanent financing can be obtained. Foster Acres will span a total of 20 acres off of Loop 410 and Rigsby Road, on the city's East Side. The homes are targeted to families who make between 60 and 80 percent of the median family income, which amounts to roughly $28,000 to $40,000 a year.

NHS makes home ownership possible for such families by subsidizing a portion of their home loan, a job made easier with the help of lenders like Security Service. "Because (Security Service) is financing 100 percent of the loan at just a 3 percent interest rate, it ensures we have the capital necessary to make low-interest home loans for families with moderate incomes," says Robert Jodon, executive director for NHS. "We're very excited about this particular project because it is the largest subdivision we will have developed.

"We have had a commitment to affordable housing, collaborating with NHS since 2004, when we committed $10 million in home loans for families of modest means," adds Keith Sultemeier, executive vice president and chief financial officer of Security Service. "This is an obvious way to expand that commitment and go even further in getting people into homes."

Phase one of Foster Acres will feature between 25 and 50 three and four bedroom homes that will range in price from $105,000 to $115,000. Ultimately, the community will also include lots sold to other builders, for the purpose of creating a mixed-income neighborhood. "Our focus is on what we know is successful in urbanism planning and design," Jodon says.