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Gateway Community Development Fund Receives Federal Certification; Means Significant Increase In Efforts To Promote Affordable Housing |
- A local organization dedicated to community development in economically distressed neighborhoods has received national certification that will allow it to increase its assistance, including the purchase of foreclosed homes for affordable housing.
Gateway Community Development Fund, a subsidiary of the Kansas City Equity Fund, has been designated a certified community development fund institution (CDFI) by the United States Department of Treasury. The Community Development Financial Institutions Fund, a branch of the Treasury, awarded the certification.
“As a certified community development entity acting as a non-banking financial institution, we now are eligible for greater opportunities offered by the U.S. Treasury,” said Erica Dobreff, president of Gateway Community Development Fund. “In other words, we will be able to greatly expand our work, including attracting additional investments that can be utilized to make loans and provide other services in the community.”
Gateway promotes community development in economically distressed neighborhoods by providing financial products, such as pre-development loans and mortgage loans secured by affordable housing properties. It also provides technical expertise in a range of related areas, such as construction management and guidance in seeking other sources of financing. It supports both rental housing developments and homeownership opportunities as well as other forms of community development.
“Our organizational mission is to focus on under-served markets. This includes providing financial assistance that community development organizations might otherwise find difficult to obtain through more traditional sources,” Dobreff explained. “This certification brings with it more access to capital for the Gateway Fund which, in turn, will be leveraged to provide assistance in the area’s distressed communities These services will augment the activities of the Kansas City Equity Fund throughout the metro area.”
One partner with Gateway in local affordable housing efforts has been Neighborhood Housing Services of Kanas City, a not-for-profit community development organization. “Based on our properties, we represent a potential risk that many traditional lending sources simply cannot tolerate, especially in today’s economic environment. That’s where Gateway comes in,” said Neighborhood Housing Services President and CEO Mark Stalsworth. “With the additional funding the certification brings, we hope to be able to get a sizeable line of credit with Gateway that will allow us to rehab perhaps 25 to 30 foreclosed properties into affordable housing, not just our typical two or three a year.”
The certification, as mentioned, will provide greater access to capital for Gateway, in addition to the increased funding from the Treasury. “Other community development funds have found that certification has enhanced their ability to raise capital from other sources, such as banks, foundations and governmental agencies,” Dobreff said. “So that will be a point of emphasis for Gateway as we strive to meet the local need for affordable housing.”
The Community Development Financial Institutions Fund was created in 1994. Its mission is to expand the capacity of financial institutions to provide credit, capital, and financial services to underserved populations and communities in the United States. It has awarded over $1.4 billion to community development organizations and financial institutions.
The Gateway Community Development Fund was created in 2009. For more information on the organization, visit: www.gatewaycdfi.com.
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Posted on:
Monday, October 24, 2011 07:10 AM |
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