Guaranty Federal Bancshares Inc. (Nasdaq: GFED) and Habitat for Humanity of Springfield plan to distribute $492,570 in home-repair funds with the help of a Des Moines, Iowa, member-owned financial services cooperative.
Through the grant provided by Federal Home Loan Bank of Des Moines’ Affordable Housing Program, Guaranty will distribute funding through Habitat for Humanity’s
Creating Healthy Homes program, according to a news release.
The funding would help low- to moderate-income households make repairs to alleviate code violations and health risks. Averaging $12,000, the funding allotments would target residents in four Springfield neighborhoods: Grant Beach, Midtown, West Central and Woodland Heights. The funds would only be required to be paid back if the home is sold or refinanced within five years of the improvements.
The latest grant from Federal Home Loan Bank marks the fifth Guaranty has received in the past five years, bringing the total amount used to improve Springfield homes to $1.2 million. The funding is part of $19.3 million recently released by the Iowa banking company to aid housing grant projects in its 13-state territory, according to the release.