DALLAS, Aug. 6, 2009 (GLOBE NEWSWIRE) -- Community Development Corporation of Brownsville (CDCB) was awarded $385,000 in three Affordable Housing Program (AHP) grants by the Federal Home Loan Bank of Dallas (FHLB Dallas). The grants will assist three separate affordable housing projects: Campo Real, Inwood II, and the Colonia Initiative. The projects were a collaborative effort made possible by three Texas banks: Frost Bank, Lone Star National Bank, and the International Bank of Commerce.
Of the $385,000 awarded, $70,000 was awarded to CDCB for the Colonia Initiative project through Lone Star National Bank in Pharr, Texas. The grant will provide assistance for the reconstruction of housing for very low-income individuals and families living in rural areas along the South Texas border.
Nick Mitchell, Executive Director of CDCB, said traditionally, the colonias have had no access to running water, sewage, or electricity, but county officials in South Texas are working diligently to meet this demand. Once the need is met, CDCB steps in, and with assistance from the AHP funds, they are able to reconstruct many of the homes to meet housing codes and include fully operational kitchens and bathrooms with electricity, plumbing and running water. For many families, this is the first time they will have direct access to these resources.
"The Federal Home Loan Bank of Dallas has been there since day one for the colonia projects, and has played a huge role in our efforts to assist the people living in these locations," said Mr. Mitchell. "CDCB has assisted more than 300 families in colonia locations, and half to three-fourths have utilized AHP funds."
Raymond Cisneros, Executive Vice President and Chief Credit Officer at Lone Star National Bank, works with FHLB Dallas to obtain AHP grants for organizations such as CDCB.
"CDCB is an expert in their field, and the organization helps make housing affordable for those who need it most," said Mr. Cisneros. "The colonias around the Brownsville area are very low-income neighborhoods, and the city cannot afford to build roads, or provide sewage and electricity. Therefore, these rural locations remain remote and unincorporated by the city, and the residents are living without basic needs. Funding from outside organizations, such as AHP grants, allows CDCB to help the families and individuals living in these areas. CDCB is great partner for our community, and Lone Star National Bank will continue to work with them on various housing projects."
CDCB is a private, nonprofit community housing development organization that has provided safe, sanitary and affordable housing to the citizens of Cameron County since 1974. It is one of the largest nonprofit producers of single-family, affordable housing for homeownership in the state of Texas.
Each year, FHLB Dallas returns 10 percent of its profits in the form of AHP grants issued by its member financial institutions. So far in 2009, FHLB Dallas has awarded $5.4 million in AHP grants to 25 affordable housing projects through its five-state District, including almost $1.2 million in Texas, which will result in the creation or renovation of 178 affordable housing units in the state.
About the Federal Home Loan Bank of Dallas
The Federal Home Loan Bank of Dallas is one of 12 district banks in the FHLBank System created by Congress in 1932. FHLB Dallas, with total assets of $68.7 billion as of March 31, 2009, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to more than 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information, visit the FHLB Dallas web site at fhlb.com.
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