Washington, DC – October 2, 2009 – (RealEstateRama) — Congressman Henry Cuellar (TX-28) today announced that 30 low-income families in Hidalgo County are closer to reaching the American dream thanks to $1 million awarded to Affordable Homes of South Texas, Inc., by the U.S. Treasury Department.
With the $1 million in federal funding, Affordable Homes of South Texas, Inc., a non-profit organization that serves as a subdivision developer, home builder, and mortgage company, will build 30 homes in Hidalgo County.
“For most Americans, owning a home is a dream come true, and today I am proud to say that 30 families will be able to live that dream,” said Congressman Cuellar. “I congratulate and applaud the efforts of Affordable Homes of South Texas, Inc., for their tireless work in ensuring that some of the most vulnerable members of society have a safe and secure roof over their heads.”
“This award will definitely go a long way as it will give us more resources to help serve low-income families in our communities,” said Robert A. Calvillo, executive director of Affordable Homes of South Texas, Inc.
Since the non-profit agency is its own builder, homes will be sold at cost, thus saving the homebuyer thousands of dollars. On average, the homeowner will pay an interest rate between 6 to 6.5 percent over 30 years.
Over the last 33 years, Affordable Homes of South Texas, Inc., has provided new homes to at least 3,000 families. In order to qualify for a home, applicants must meet the Department of Housing and Urban Development criteria of low-income. For example, a family of four earning no more than $36,500 per year qualifies for the program. Interested applicants must also:
• live in Hidalgo County
• be able to provide a $2,500 down payment on the home
• have a minimum of $200 disposable income per month
The funds that Affordable Homes of South Texas, Inc. received are from the Treasury Department’s Community Development Financial Institution (CDFI) Program. It was one of only 62 institutions selected nationwide from an applicant pool of 194 organizations that had collectively requested over $273 million in awards. The 62 organizations being awarded are headquartered in 24 states, the District of Columbia and Puerto Rico.
All organizations are selected for an award through a competitive application process involving a Comprehensive Business Plan review.
The CDFI Program invests in and builds the capacity of existing private, for-profit and nonprofit community-based lending organizations known as CDFIs that serve rural and urban low-income people and communities across the nation that lack adequate access to affordable financial products and services.
###Congressman Henry Cuellar is a member of the U.S. House Homeland Security, Agriculture, and Government Oversight & Reform Committees in the 111th Congress. Accessibility to constituents, education, health care, economic development, and national security are his priorities. Congressman Cuellar is also a Senior Whip and member of the Blue Dog Coalition.