TRUTH OR CONSEQUENCES, N.M., Sept. 10, 2010 (GLOBE NEWSWIRE) -- The rehabilitation of the Hacienda Orgullo Apartments, an apartment complex for very low- and moderate-income elderly and disabled residents in Truth or Consequences, New Mexico, has been two years in the making.
The developers of the project, the New Mexico Housing and Community Development Corporation (NMHCDC), was able to secure HOME funds, as well as financing through a pilot program through U.S. Department of Agriculture Rural Development because of the project's rural location and the population it will serve. However, the project desperately needed gap financing and the pursuit of this financing took longer than expected.
NMHCDC applied for a Federal Home Loan Bank of Dallas (FHLB Dallas) Affordable Housing Program (AHP) grant this year, and was awarded a $384,000 AHP grant, through Citizens Bank of Las Cruces, to assist with rehabilitation costs for Hacienda Orgullo Apartments.
NMHCDC, a nonprofit organization founded in 2003, develops, owns, and manages affordable rental housing throughout the state of New Mexico. The organization has completed the acquisition and rehabilitation of 10 properties, resulting in the preservation of 575 housing units.
"The AHP funds were pleasantly received," said Rick Courtney, president and CEO of NMHCDC. "I don't know what we would have done if we hadn't gotten the AHP grant this year. These funding sources that come into partnership with you don't stay with you forever. So receiving the AHP grant got everybody excited about the project again."
Each year, FHLB Dallas returns 10 percent of its profits to the communities served by member institutions in the form of AHP grants issued through its member financial institutions. The grants are used to purchase, construct, or rehabilitate single-family, transitional, and multifamily projects for very low- to moderate-income families. The AHP grant to NMHCDC is part of $18.5 million in AHP grants that FHLB Dallas has awarded in 2010 through its more than 900 member institutions to help create, renovate, or purchase 2,632 housing units, including $2.87 million in New Mexico, for 382 housing units.
A majority of the AHP funding this year – nearly $12 million – was awarded to rental housing projects like Hacienda Orgullo Apartments. The grant for the Hacienda Orgullo Apartments was awarded through Citizens Bank of Las Cruces, an FHLB Dallas member institution in Truth or Consequences that has been a partner of NMHCDC since the organization's inception.
"We are committed to assisting in the creation of affordable housing," said Justin Harper, president and CEO of Citizens Bank of Las Cruces. "We are pleased to be part of this program and support the community of Truth or Consequences. We look forward to future opportunities to help the city grow and prosper."
Other sources of funding on the project include the New Mexico Mortgage Finance Authority and the Southern New Mexico Community Action Agency, which provided weatherization funds, among other partners. The Truth or Consequences Housing Authority will manage the property.
The rehabilitation of the project will address deferred maintenance, capital improvement repairs, window replacement, heating and cooling replacement, accessibility modifications, stucco repair or replacement, and water conservation landscaping. Once renovated, the apartments will partner with service providers for seniors and also will house a meal site that will serve not only Hacienda Orgullo residents, but surrounding lower income complexes.
Mr. Courtney says NMHCDC expects to close before the end of the year, and for the rehabilitation to be completed in about nine months to a year after the closing. NMHCDC received a previous grant in 2007 for the Socorro Village Apartments, another rehabilitation project for low-income elderly and disabled residents, which is now completed.
"We have a number of properties and AHP has helped out in Truth or Consequences on a couple of others. FHLB Dallas is really engaged in Truth or Consequences and providing funds for our assisted housing programs," Mr. Courtney said.
NMHCDC has been working with members of Citizens Bank of Las Cruces since the organization was formed in 2003.
"Citizens Bank truly understands AHP and other FHLB Dallas programs," Mr. Courtney said.
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 $57.1 billion as of June 30, 2010, 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.
The Federal Home Loan Bank of Dallas logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3013
About Citizens Bank of Las Cruces
Locally owned and operated since 1970, Citizens Bank of Las Cruces operates five branches within Sierra and Dona Ana counties. Citizens Bank is committed to providing the best financial services to these communities. In addition to the banking services it provides, Citizens Bank supports the local community through partnerships, involvement, and contributions. For more information, visit www.citizenslc.com.
CONTACT: Federal Home Loan Bank of Dallas Corporate Communications (214) 441-8445 www.fhlb.com