FAQ’s

The Homes Fund grew out of a community initiative concerned about the affordability of housing, particularly the growing inability of working families to become homeowners. In partnership with the Regional Housing Alliance of La Plata County (RHA) and other non-profit agencies, the Homes Fund [a 501(c) 3] was needed to help raise and leverage additional funds for mortgage assistance and development programs. Specifically the Homes Fund was created to apply for federal funds under the Community Development Financial Institutions program under the US Department of Treasury.

Community Development Financial Institutions (CDFIs) are organizations designated by the Department of Treasury to provide credit or investment opportunities in underserved communities throughout the country. With the CDFI certification organizations have access to millions of dollars in federal grants. In 2009 alone the federal government allocated over $100 million to CDFIs. Please visit www.cdfifund.org for more information.

The Homes Fund is seeking certification to become a CDFI in order to provide homeownership loans to 3 primary target market populations: 1) low-income (under 80% of area median income), 2) Native American and Hispanic households, and 3) households purchasing in a qualifying census tract (currently both tracts are within the City of Durango). In 2009 the Homes Fund will apply for a $600,000 financial award (received in April 2010) to make approximately 15 shared appreciation second mortgages to families in La Plata County.  By 2012 the Homes Fund could potentially raise up to $5 million for second mortgages.

During its start-up phase, the Homes Fund is contracting with RHA (through a cooperative agreement) to co-provide client homebuyer assistance services, including 1) individualized financial and pre-purchase counseling, 2) a comprehensive homebuyer education class, and 3) mortgage assistance program.  The Homes Fund received start up funds that were granted from BP America to the RHA to build and seed an investment fund. Although the Homes Fund and RHA have separate boards they are able to share the mission of providing financing to low and moderate income families in La Plata County through a legal agreement governing cooperation and expectations between the two organizations. If grant funds are passed between entities the relationship and expectations of each funding source is formalized through an exhibit to the cooperative agreement.

The RHA, over the past 18 months, has invested $65,000 (from a BP grant) and staff time into the creation of the Homes Fund. In return, the Homes Fund has raised significant resources and allowed the RHA/Homes Fund to create systems for program management, create and implement a capitalization strategy, and increase capacity for lending activities. The total annual budget for the Homes Fund is $ 200,000.  Of this approximately $85,000 will be passed though to the RHA to support its programs.  In June 2009, the Homes Fund completed its start-up period and ceased to be reliant on RHA for grants funding and in-kind support. Since its inception the Homes Fund has had the following successes: $100,000 grant from the CDFI fund for technical assistance: • $45,000 is earmarked to pay RHA lending staff (for 18 months) • $55,000 will provide software, other loan management tools and expert consulting of benefit to both RHA and the Homes Fund over the next year; $84,000 in a federal Section 4 grant from Enterprise Community Partners: • 100% pass through to RHA to pay for the salary costs of the Rose Architectural Fellow; $25,000 capacity building grant from Enterprise Community Partners: • 100% pass through to RHA for lending and homebuyer counseling personnel costs; $50,000 in CDBG funds: • Designated to support audit, financial management and set-up costs, equipment and staff development between  September 2009 and June 2010; The Homes Fund is currently preparing an application for $600,000 in CDFI grant funds to add to the capital of the joint lending program with RHA.

• Trained over 300 families through the homebuyer education program • Counseled over 200 families • Closed 35 loans for 30 families • Lent $1.16 million in gap financing, which has leveraged over $5.4 million in first mortgages to the community • Raised $2.15 million in loan capital • Committed $463,000 to an additional 11 families for home closings in the next 6 weeks • Averaged 6 new family intakes into the program a week