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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