Habitat for Humanity Gets Financing Boost

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LOVELAND, CO - Loveland's Habitat for Humanity will be able to build more affordable homes sooner thanks to a statewide mortgage purchase program. The Colorado Housing and Finance Authority, a self-sustaining public enterprise aimed at strengthening communities, has offered $7.5 million to buy mortgages from the nonprofit organization's branches around the state.

The homeowner will still receive the zero percent fixed interest rate and mortgage repayment as originally structured by Habitat for Humanity. However, after getting the total mortgage amount all at once from the Colorado Housing and Finance Authority, rather than the homeowner's month-to-month payments each Habitat for Humanity will be able use that chunk of money to build new homes faster.

The Colorado Housing and Finance Authority has been implementing this program with the nonprofit organization each year since 1999, although this is the largest amount of money ever allocated to the cause. "The big news here is that amount, which is outstanding," said Gwen Stephenson, executive director of Loveland Habitat for Humanity. "We appreciate that very much."

Funding itself through bonds, not tax dollars, the organization finances loans for low- and moderate-income homebuyers, affordable multifamily rental housing developers and small and medium businesses. Its work with Habitat for Humanity is the only one of its kind in the nation, said the organization's media liaison Jerilynn Martinez. "We've found that it's through creating these unique partnerships that we can have the most impact on the community," she said.

And because of the significant increase in homes being built by Habitat for Humanity, Martinez said, Colorado Housing and Finance Authority was able to give more money to meet that demand. Last year Loveland's branch received around $100,000, enough to pay the mortgage for one home, and thus fund the construction of another.

With the larger amount of money available this year, local program director Susan Briggs estimated the Loveland Habitat for Humanity would receive double the previous amount. "To be able to sell an additional mortgage will provide the funding for building an additional home," she explained. And if the homeowner runs into any financial troubles, she added, Habitat for Humanity can substitute that mortgage and begin working with the client again. "It's protection that we have in place for our families," Briggs said.

While the final allocation of the fund to the state's Habitat for Humanity affiliates has yet to be finalized, Briggs said they are thankful for the help. "Colorado Housing and Finance Authority has really been a huge assistant to our affiliate each year," she said, noting that Loveland Habitat for Humanity is completing its 74 home this month. "They really help us meet our goals.
Source: ReporterHerald.com

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