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.