Organizations team to repair Springfield neighborhoods

Guaranty Bank and nonprofit community development organization Urban Neighborhoods Alliance have partnered to assist 50 households in providing repairs in select Springfield neighborhoods.

Using a $289,000 grant from Federal Home Loan Bank of Des Moines' Affordable Housing Program, the bank and UNA will target four neighborhoods: Grant Beach, Midtown, West Central and Woodland Heights.

Bob Horton, UNA executive director, said Guaranty was the liaison between the organization and the Federal Home Loan Bank of Des Moines.

"I think (Guaranty Bank) understands what we do, and I think that's one of the reasons they were agreeable to help us with this," he said.

This was the third time UNA has applied for an AHP grant but the first time it has received one, Horton said.

"The Affordable Housing Program will be a catalyst for community development by providing Guaranty Bank and UNA an opportunity to resolve affordable housing issues in the city of Springfield,” Gary Dodge, vice president and director of community investment for Federal Home Loan Bank of Des Moines, said in a news release.

The grants are capped at $5,000 per home with a five-year retention period, meaning the grants will only have to be paid back if the house is sold or refinanced within five years after repairs are completed.

Horton said a total of 50 households will be chosen for the project - 15 with an income threshold of 50 percent below area median income, 30 with an income threshold of 51-60 percent of median income and five with an income threshold 61-80 percent of median income. Of the 50 houses, 15 will be selected that are owned by elderly residents.

Households that fall within the criteria can apply for the grants. Notice of the grant funding will be sent through neighborhood newsletters, via e-mail and by word of mouth, Horton said.

"We are very pleased to work with Bob Horton at UNA to assist in distributing these funds. Bob is dedicated to helping these neighborhoods and their residents improve the quality of their homes and their lives," Dana Elwell, Guaranty senior vice president, said in the release "It’s very rewarding for Guaranty Bank to be a part of such a worthwhile community investment project."

The Federal Home Loan Bank of Des Moines provided $16.4 million through its Affordable Housing Program in 2010.

The wholesale cooperative bank provides low cost short- and long-term funding and community lending to commercial banks, saving institutions, credit unions and insurance companies in Missouri, Iowa, Minnesota, North Dakota and South Dakota, the release said.[[In-content Ad]]