AUSTIN, TX – July 8, 2010 – (RealEstateRama) — The Texas Department of Housing and Community Affairs (TDHCA) today announced a $37,500 award to help a regional community development organization access federal grant funds and enhance homeownership for low income residents in a six-county service area. The award was among the first through a newly created program funded through TDHCA’s Housing Trust Fund designed to expand affordable housing in rural portions of the state.
The Department made the award to the Brazos Valley Community Development Corporation (CDC), a Bryan-based community development financial institution working to increase the supply of affordable housing in Brazos, Burleson, Leon, Madison, Robertson, and Washington counties.
The organization will use the grant to help package, submit, and close 25 rural housing loans through the U.S. Department of Agriculture’s Section 502 Loan Program. These federal loans may be used to construct, rehabilitate, or relocate homes in rural communities or to acquire sites for homes, including the installation of water and sewage facilities.
“TDHCA is committed to increasing housing choices in rural Texas,” said Michael Gerber, TDHCA Executive Director, “and we are excited about the potential of this new funding program to expand housing opportunities in small towns across the state. We are providing rural Texans and their housing partners the tools to increase affordable housing, which will help maintain the economic health of their communities while creating numerous construction jobs and related services.”
Funding for this award came through the Rural Housing Expansion Program, a new initiative that is part of TDHCA’s Housing Trust Fund. The goal of the program is to increase the capacity of rural Texas communities to develop affordable housing by providing qualifying applicants capacity building resources and funds for direct housing delivery. By having a commitment of direct delivery funds, TDHCA believes the recipients would be better positioned to develop capacity through training, technical assistance, and hands-on experience.
Each organization receiving funds through the Rural Housing Expansion Program must undergo an intensive capacity assessment performed by a third-party technical assistance provider to be determined by TDHCA.
Based on the assessment, the technical assistance provider will identify a plan for each organization that covers what their capacity needs are and how to achieve them, and will provide some of the technical assistance skills to enhance capacity.
TDHCA’s Housing Trust Fund is Texas’ only state-funded program for the acquisition, rehabilitation, and new construction of affordable housing. Funds are awarded to rural cities and counties, nonprofits serving rural cities and counties, or consortia of several such entities.
The Department places a strong emphasis on allocating Housing Trust Fund awards to properties serving rural communities, elderly individuals, persons with disabilities, and extremely low income households. The Rural Housing Expansion Program is designed to serve households earning no more than 80 percent of the area median family income.
For more information regarding this award, please contact Brazos Valley CDC at (979) 595-2809.
About The Texas Department of Housing and Community Affairs
The Texas Department of Housing and Community Affairs is the state agency responsible for affordable housing, community services, energy assistance, colonia housing programs, and disaster recovery housing programs. It currently administers over $2 billion through for-profit, nonprofit, and local government partnerships to deliver local housing and community-based opportunities and assistance to Texans in need.