Atlanta, GA: Yesterday, the U.S. Treasury’s CDFI Fund announced the second round of funding from its Capital Magnet Fund. Metro Atlanta housing nonprofit Atlanta Neighborhood Development Partnership, Inc. (ANDP) received a grant of $1 million to support its ongoing affordable housing program. ANDP was one of 32 organizations in the nation to receive an award.
“Affordable housing remains out of reach for far too many Americans,” said Antonio Weiss, Counselor to Treasury Secretary Jacob J. Lew. “This funding will enable organizations across the country to expand access to affordable housing and help meet the critical needs of thousands of families.”
ANDP will use the funds to continue its foreclosure redevelopment program of acquiring vacant homes, rehabilitating them and making them affordable to low- and moderate-income families.
“We are thrilled to receive this award from the Capital Magnet Fund. We’ve worked diligently with our local government partners and mission-minded private partners to impact more than 500 units of housing since the foreclosure crisis. Unfortunately many neighborhoods are still languishing with the lingering impact of the crisis – negative equity,” explained ANDP President & CEO John O’Callaghan.
According to Zillow’s 2016 Q2 Negative Equity report, metro Atlanta has the fourth worst negative equity levels among the largest 25 metros with 14.6% of homes underwater, compared to 12% national average. Homeowners in negative equity (or underwater) owe more on their mortgage than their home is currently worth on the market. The region still has a significant number of communities with far worse levels of negative equity. Atlanta’s 30314 and 30310 zip codes have 48% and 51% respectively, of homes that are underwater. Clayton County’s 30274 and 30297 zip codes have 48% and 51% respectively – an improvement of more than 20% since the peak in 2013, but still four times the national average.
“These funds will enable us to complete more than 100 homes in the next five years, while providing down payment assistance to low-income homebuyers and helping lift home values in neighborhoods struggling with negative equity,” O’Callaghan shared.
“The impact of this program will be tremendous,” said CDFI Fund Director Annie Donovan. “The program requires recipients to leverage $10 of housing and economic development investments for every $1 of federal funds meaning today’s awards will support over $900 million of investment in low-income communities.”
“At the end of the day, putting our taxpayer dollars to work in our own communities rather than Washington ensures accountability and creates a stronger partnership between those of us here at home as we lift up our neighbors,” said Rep. Rob Woodall (R-GA-07). “The Atlanta Neighborhood Development Partnership is a great example of that local commitment, and their success has already made an impact on so many families right here in the Seventh District and throughout the region.”
ANDP, a chartered member of the NeighborWorks national network of affordable housing organizations, has rehabbed 457 single-family homes and 88 apartment units since the onset of the foreclosure crisis. The organization, now in its 25th year of operation, has impacted 11,285 homes, housing 28,212 metro Atlanta residents.
About ANDP – ANDP is a private, non-profit organization created in 1991 to promote, create and preserve affordable housing through direct development, lending, policy research and advocacy that result in the equitable distribution of affordable housing throughout the metropolitan Atlanta region. ANDP is a chartered member of NeighborWorks.
About NeighborWorks America – For more than 35 years, NeighborWorks America, a national, nonpartisan nonprofit, has created opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. In the last five years, NeighborWorks organizations have generated more than $27.2 billion in reinvestment in these communities. NeighborWorks America is the nation’s leading trainer of community development and affordable housing professionals.
About the CDFI Fund – Since its creation in 1994, the CDFI Fund has awarded more than $2 billion to CDFIs, community development organizations, and financial institutions through the CDFI Program, the NACA Program, the Bank Enterprise Award Program, the Capital Magnet Fund, and the Financial Education and Counseling Pilot Program. In addition, the CDFI Fund has allocated $43.5 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and $852 million has been guaranteed in bonds through the CDFI Bond Guarantee Program.
About the Capital Magnet Fund – Through the Capital Magnet Fund, the CDFI Fund provides competitively awarded grants to CDFIs and qualified non-profit housing organizations. These awards can be used to finance affordable housing activities, as well as related economic development activities and community service facilities. Awardees are able to utilize funds to create financing tools such as loan loss reserves, revolving loan funds, risk-sharing loans, and loan guarantees. Organizations that receive Capital Magnet Fund awards are required to produce housing and community development investments at least ten times the size of the award amount, generating a multiplier effect that means that more low-income people and low-income communities nationwide will have housing options within their financial reach.