LOWCOUNTRY HOUSING TRUST, INC.
Grant: $600,000 - Community Development Financial Institutions - May. 8, 2009
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Award Description: Lowcountry Housing Trust (LHT) is a non-profit regional housing finance entity established in 2004 and certified as CDFI in 2007. LHT's mission is to provide financing and capital to assist nonprofits, government entities and private developers in developing and constructing a full spectrum of affordable housing, for the purpose of serving low-income residents in its Target Market ? the greater Charleston, South Carolina metropolitan area. Through its programs, LHT strives to be a stimulus and catalyst for affordable housing by increasing available funding support and removing barriers to production in order to ultimately increase housing choice and access to housing options so that low-income residents can secure safe, decent and affordable housing. By the end of 2008, LHT will have lent over $1.5 million to affordable housing developers to create 368 affordable housing units and provided 40 low-income families with $723,000 in soft-second, forgivable, down payment assistance loans through LHT?s Homeownership Assistance Program for first-time homebuyers. With these programs, LHT increases homeownership opportunities and affordable housing options for low-income residents of the Target Market. LHT is utilitizing $500,000 in its ARRA award for loans to affordable housing developers and $100,00 to support the administration, marketing and deployment of new, flexible financing products that will provide much needed subordinate financing to affordable housing developers. TA will support increasing administrative support staff to full time, ongoing CDFI management capacity-building, improving internal financial management capacity, and technology and equipment upgrades. LHT will also utilize funds to support loan loss reserves to ensure appropriate risk management resources are in place for each loan deployed. LHT will not utilize any more than 15% of FA funds for loan loass reserves, well within CDFI standard. This funding is an essential component of LHT?s business plan to offer a range of flexible financing options that increase the number of affordable housing developments that are financially feasible, while increasing earned revenue and improving self-sufficiency and long-term sustainability. The Target Market is characterized by rapid population and economic growth, escalating real estate costs, a comparatively low home-ownership rate for a major metropolitan area, increasing income disparities, and housing affordability challenges across all income brackets up to 140% of median income. LHT serves a much needed role in promoting increased affordable housing production to meet this challenge. CDFI Fund support will help LHT to provide a projected 28 loans totaling $4,975,000 to affordable housing developers through 2011, thus facilitating the production of 742 affordable housing units that would not be developed without LHT?s favorable financing terms. These financing goals are based on projections developed with assistance from Opportunity Finance Network. From other funding streams, LHT will help 86 low-income families achieve homeownership with $1,340,000 in down payment assistance loans.
Project Description: CDFI Fund support will help LHT to provide a projected 28 loans totaling $4,975,000 to affordable housing developers through 2011, thus facilitating the production of 742 affordable housing units that would not be developed without LHT's favorable financing terms. These financing goals are based on projections developed with assistance from Opportunity Finance Network. LHT has provided 1 loan this quarter totaling 23,833.75.
Jobs Summary: In an effort to implement LHT's CDFI comprehensive business plan, LHT hired a Lending Director who will work directly with the Executive Director and Program Director to implement expanded programs and services. The Lending Director will develop, implement and monitor all policies and procedures related to the LHT's CDFI loan programs, including working with the Program Director to expand existing loan programs, develop new programs and provide expanded technical assistance trainings and development services. The Lending Director will play an integral role in implementing the necessary risk management polices, underwriting guidelines and monitoring procedures for LHT to successfully deploy funds through its lending programs, including loan packaging, portfolio development, servicing, collections, monitoring and file maintenance keeping thorough and up to date records, preparing reports, informing Director of potential problems and recommends course of action. The Lending Director will also work with the Executive Director to develop private sector partnerships to increase funding sources to LHT through resource development in the form of both loans and grants, including, but not limited to CDFI deposits, program related investments, community reinvestment opportunities and public and private contributions. The Executive Director, Program Director and Lending Director will work together to develop and implement appropriate funding programs and services based the resources received by LHT, the current target market needs and in line with LHT's overall business strategy to meet the needs of affordable housing while also being fiscally accountable and self-sufficient. (Total jobs reported: 5)
Project Status: Less Than 50% Completed
This award's data was last updated on May. 8, 2009. Help expand these official descriptions using the wiki below.
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