Homestead And Housing Rehabilitation Programs Renewed
The Portland Development C om ow ning a house.
U.S. Bank and Housing Reha
mission today approved agreem ents
with U.S. Bank o f O regon and First bilitation Loan Program
The agreement between the U.S.
Interstate Bank o f O regon renew ing
tw o critical housing program s tar Bank and PDC expands the public/
geted to low- and m oderate-incom e private partnership that applies fed
eral block grant funds to leverage
families.
U.S. Bank o f O regon will m ake private financing of most o f PD C ’s
available $5 m illion in private funds home repair loan projects, thereby
over the next two years to continue stretching the impact o f the city ’s
PD C ’s hom e repair loan program . federal aid.
Past experience has resulted in
The funds will allow approxim ately
every
one dollar in federal grant money
200 loans for repairs and im prove
leveraging
five dollars in private
m ents to hom es and apartm ents shel
funds,
a
remarkable
five-to-one ratio.
tering low- and m oderate-incom e
John
D.
Eskildsen,
who is both
families.
President
and
Chief
Executive
O ffi
As part o f the second agreem ent,
cer
o
f
U.S.
Bank
and
a
PDC
Com
m is
First Interstate Bank o f O regon will
sioner,
said,
“Joining
the
community
com m it $3 m illion over the next 18
months to fund home ow nerdtip loans development expertise of the PDC
through the Portland H om estead P ro staff and the city’s federal aid with the
gram. The agreem ent w illallow up to resources of U.S. bank M akes for a
75 low- and m oderate-incom e P o rt powerful combination. Together we
land fam ilies to realize the dream of are able to achieve success and de-
State Guarantees First
Loans With Credit
Enhancement Fund
The Oregon Economic Develop
m ent D epartm ent announced T ues
day that it has guaranteed its first two
loans under the Credit Enhancem ent
Fund.
The state guaranteed a loan made
by the Bank of Astoria to a m anufac
turer o f m otorized carts. The com
pany currently em ploys 20 people
and will add an additional five em
ployees. South Umpqua State Bank in
Roseburg made a loan to a ranch
supply company to expand its inven
tory. The guarantee was a “critical
factor” in the ability o f the two banks
to m ake the loans according to Rhonda
W ills, Bank o f A storia, and Ron
Preston, South Umpqua State Bank.
“The C redit Enhancem ent Fund
is an im portant financing tool for
Oregon businesses. The program in
volved broad-based cooperation from
Gov. Barbara Roberts, the Oregon
Legislature, the Oregon Bankers A s
sociation, the O regon Departm ent of
Agriculture, and the W ood Products
C om petitiveness C orp.,” said Bill
Scott Oregon Economic Development
D epartm ent Director.
The Credit Enhancem ent Fund
guaranties loans made by banks to
Oregon businesses. Businesses eli
gible for Credit Enhancem ent Fund
include: manufacturers, processors, natu
ral resource industries, distribution com
panies, and new technology businesses
which employ 200 or fewer people.
“Oregon banks look forward to
working with this program to make
additional loans available to Oregon
businesses. W ith the State’s guaran
tee, Oregon banks are able to make
loans that they might not otherwise be
able to make. I expect to see strong
participation from Oregon banks,”
said Frank Brawner, president of the
Oregon Bankers Association.
To date, thirteen Oregon banks
are participating in the C redit En
hancem ent Fund program . T hese
banks are: American Pacific Bank,
Bank of Astoria, Bank of W allowa
County, Centennial Bank, First Secu
rity Bank, Key Bank, Pacific C onti
nental Bank, Pacific State Bank, The
Prineville Bank, South U m pquaState
Bank, V alley C om m ercial Bank,
W estern Oregon Community Bank,
and W est One Bank. The Oregon
Economic Developm ent Department
is able to guaranty up to $75 million
in bank loans under the program.
liver benefits in ways none of us could
alone.”
PD C E xecutive D irector Jan
Burreson praised the agreement, say
ing, “We are very pleased that U.S.
Bank will be joining with us to im
prove Portland neighborhoods. As part
of the PD C’s new funding strategy we
will be seeking innovative ways like
this to join with private sector part
ners to leverage public dollars - in this
case, the city’s federal block grant
allocation.”
The below-market interest rate
loans are available for improvements
like roof repairs, plumbing and elec
trical work, and furnace and water
heater repairs for rental and owner-
occupied homes in targeted areas of
Northeast Portland. The income of
families living in the housing must
not exceed 80% of the region’s m e
dian income.
The financing agreem ent is the
first between the Comm ission and the healthy and attractive neighborhoods.
U.S. Bank. Through April 1994,PDC Portland is stronger because o f it;
had made 202 loans through the pro w e’re pleased to continue our support
gram, with $ 1 million in federal grant o f a program that benefits us all.”
Nyle Hunter, PD C ’s Director of
money com bining with $5.3 million
in private financing. The average loan Housing, said: “W hen the public and
private sectors work together, we ad
was $31,000 dollars.
First Interstate Bank of Oregon dress the challenges Portland is fac
and the Portland Homestead Program ing. This is an example of how a small
The agreem ent with First Inter amount o f public money can leverage
state Bank of Oregon renews the pub- a sizable com m itm ent from the pri
lic/private partnership supporting the vate sector to help make homes af
Portland Homestead Program. The fordable for residents of Portland.”
In addition to making home own
program provides home ownership
opportunities to first-time home buy ership a possibility for many Portland
ers who otherwise might not be able to families, the program helps the City
o f Portland and Multnomah County
afford a home.
“O ne exciting benefit of this pro reclaim vacant and abandoned housing,
gram is the ripple effect,” explained while encouraging neighborhood pres
Richard Anderson, Senior Vice Presi ervation, revitalization and stability.
The agreem ent with First Inter
dent of Residential Services for First
Interstate. “These first-time buyers state renews a previous commitment
take pride in their homes, improve signed in march 1994. Under the
the properties and, in turn, create prior agreem ent, First Interstate pro
vided a $1.36 million credit line.
M ost Portland Homestead loans
carry a 20-year term, and the average
amount borrowed is approximately
$40,000. O f this, an average o f only
$6,000 comes from public funding.
The balance of the loan comes from
First Interstate through this agree
m ent PD C ’s loan dollars com e from
the Community Development Block
Grant program, administered by the
City’s Bureau of Housing and C om
munity Development.
Since 1988, the Portland H om e
stead Program has made the dream of
owning a home come true for 117
families. Persons interested in either
learning more about the PD C’s home
repair loan program or the Portland
H om estead Program should call
PD C ’s Eastside Office at (503) 823-
3400. PDC is the city’s agency for
housing, urban renewal and economic
development.
Kafoury Announces Grant Awards
Commission G retchen Kafoury
announced the aw ard of grants under
a new program to provide funding for
non-profit organizations developing
affordable housing. Thirteen organi
zations will receive funding totaling
over $380,000 under the N on-Profit
H ousing D evelopm ent O perating
Support Program . The City estimates
that this investm ent will support pro
duction o f nearly 400 units o f afford
able housing in the next year. Groups
selected to participate include Cen
tral City Concern, Franciscan Enter
prise, Hacienda Com m unity Devel
opment, Housing O ur Families, Hu
man Solutions, Innovative Housing
Incorporated, M etro Community D e
velopment, NW Housing Alternatives,
P o rtland H a b ita t fo r H u m anity,
REACH Community Development,
RO SE C om m unity D evelopm ent,
Sabin Community Development and
Transition Projects.
R e c ip ie n ts u n d e r the O p e ra t
in g S u p p o rt P ro g ra m w ere s e
lected th ro u g h a c o m p e titiv e a p
p lic a tio n p ro c e ss. S e v e n te e n a p
p lic a tio n s w e re r e c e iv e d a n d
screened by a rev iew p anel o f five
c itiz e n s. U sin g th is type o f c o m
p e titiv e a p p lic a tio n p ro c e ss is one
o f the first ste p s in im p le m e n tin g
the C ity ’s new C o m m u n ity D e
v e lo p m e n t A llo c a tio n P lan.
Kafoury noted that representa-
tives o f the National Com m unity
Development Initiatives (NCDI) are
meeting in Portland this week. NCDI
is a partnership of major foundations
and the U.S. Department of Housing
& Urban Development Locally, NCDI
contributes funding to the Neighbor
hood Partnership Fund of the Oregon
Community Foundation which pro
vides training, technical support and
grants to community-based develop
ment corporations.
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