
HCDC Program Areas
COMMUNITY DEVELOPMENT BLOCK GRANT
HCDC
funded by the City of Harlingen via its Community Development
Block Grant Program manages the Affordable Housing Programs. The
program provides construction and permanent financing for the
development of single-family homes. Loan terms are at
5 % interest rate for a term of 10, 15, or 20 years depending
on affordability. HCDC assists the participants in the home selection
and conducts all construction management and inspections. All
the loan originations by HCDC are serviced internally. The Affordable
Housing Loan Program is a public/private partnership in which
local lending institutions have committed funds to purchase participation's
in these affordable housing loans. To date, five (5) local banks
have committed a combined total of $1.5 million towards the program.
A total of ninety-six (96) loans have been completed and occupied.
This accounts for a total investment of over $2.2 million dollars
in community reinvestment.
CITY
OF HARLINGEN HOME INVESTMENT PARTNSHIP PROGRAM
HCDC,
the local CHDO, is receiving the City's HOME Investment Partnership
Program funds. These funds are being utilized in the implementation
of a First-Time Homebuyer Program Initiative. The program provides
participants with down payment, closing cost assistance and gap
financing [$15,000 max]. Families are required to attend Homeownership
training and provide $1,500 in down payment. The CHDO is acting
as developer of the single-family homes. Permanent financing was
provided by NationsBanc Mortgage Corporation (now Bank of America)
through their Below Market Interest Rate Funds [$3 million dollars
were made available to the Border area], Valley Mortgage Co. through
the Harlingen-San Benito Finance Corporation First-Time Homebuyer
Bond Program, McAfee Mortgage or via the FHA. A total of fifty-eight
(58) homes have been completed & occupied for a total private
investment of $2,672,900.
TEXAS DEPARTMENT OF HOUSING & COMMUNITY AFFAIRS-HOME PROGRAM
In
May 1995, HCDC was awarded a $312,000 grant by the Texas Department
of Housing and Community Affairs (TDHCA) under the 1994 HOME First-Time
Homebuyer Program. The funds were leveraged with a $723,000 permanent
mortgage commitment received from International Bank of Commerce
(formerly, River Valley Bank, F.S.B.) and $100,000 in program
income generated by HCDC and a $50,000 dollar loan from Texas
Commerce Bank, N.A. An interim construction loan in the amount
of $150,000 dollars was obtained from the National Rural Development
and Finance Corporation, a national intermediary. The program
created a total of twenty-one (21) single-family homes targeted
for large and single-head of household families. HCDC originated
and underwrote the loans while International Bank of Commerce
staff provided the "home-ownership training" seminars
as well as provided the credit reports for prospective clients.
International Bank of Commerce also waived the origination fee
for loan processing.
CONGREGATION
OF THE SISTER OF CHARITY OF THE INCARNATE WORD DUBUIS FUND- FIRST
TIME HOMEBUYER PROGRAM
In
April 1995, HCDC applied and was awarded a grant from the Congregation
of Sisters of Charity of the Incarnate Word-Houston Dubuis Fund.
The grant would address the affordable housing need of single
female head of household with children. HCDC developed a First-Time
Homebuyer Program to meet the needs of this special target group
with at above 80%-100% of area median income. HCDC created a partnership
with the Fannie Mae - Border Partnership Office [San Antonio,
TX], the HUD/Federal Housing Administration-San Antonio Office
and NationsBanc Mortgage Corporation to fund the permanent mortgage
loans for these families. The program created ten (10) single-family
homes for a total investment of $611.755. The Dubuis Funds are
being used for down payment, closing cost assistance and gap financing.
Loans are limited to $7,500 per family and are prepaid at a 0%
interest rate for a term of ten (10) years.
NORTH AMERICAN DEVELOPMENT BANK (NADBANK) - COMMUNITY
ADJUSTMENT INVESTMENT PROGRAM (CAIP)
The
Harlingen Community Development Corporation (HCDC) was funded
in FY2000 under the CAIP Specific Grant Program to address two
eligible retraining of dislocated workers for existing jobs in
other private sector companies and establishing a pool for entrepreneurial
funding. HCDC was funded for $450,000 in CAIP grant funds to recruit
125 dislocated workers over a three-year period and find unsubsidized
employment or self-employment to 100 participants. HCDC obtained
$435,000 in leveraged funds from corporate in-kind funds and from
local workforce entities.
HARLINGEN
NEIGHBORHOOD REVITALIZATION STRATEGY (NRS)
The
Harlingen Neighborhood Revitalization Strategy (Harlingen NRS)
encompasses a multi- year partnership of the community, private,
public and non-profit sectors of the City of Harlingen, Texas
to revitalize the historic core of the City of Harlingen. The
overall goal of the NRS is to significantly revitalize the Heart
of Harlingen while retaining an appropriate mix of residential,
commercial recreational and community uses compatible with the
culture and historic context of the community. HCDC, the city's
premier affordable housing agency, has acquired 24 properties
at a cost of $512,000 using a number of financing partners, including
Fannie Mae, and the Rural Development Financing Corporation. The
City of Harlingen has allocated $200,000 of CDBG funds to use
as 20% equity participation in the acquisition project. These
properties, single family, as well as rental units, will be rehabilitated
or constructed new to provide affordable housing opportunities
to families below 80% of median income and up to 120 % of the
median income for the area. Additionally, as permanent financing
this area is targeted with a $5,000,000 allocation in Mortgage
Revenue Bonds (MRBs) issued by the Harlingen San Benito Housing
Finance Corporation. HCDC contributed $30,000 for down payment
assistance and/or interest rates of 6.5 percent for families purchasing
homes in the NRS.
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