This Just In ...
OCC's District Community Affairs Officers (DCAOs)

Central District

Ways to Work (WtW) is a nonprofit, community development financial institution that helps lower-income people. WtW is designed to help borrowers attain financial independence and advance economically by having money to purchase dependable used cars to get to work or school. Since 1996, WtW has originated nearly 12,000 loans for more than $31 million and the average auto loan amounts to an average $3,400. Results of a 2006 WtW evaluation indicate that borrowers reported an average increase of 41 percent in their take-home pay. In addition, 67 percent of WtW borrowers report that they have used conventional financial services subsequent to receiving their WtW loans.

Headquartered in Milwaukee, WtW makes its loans from 43 offices in 21 states: California, Delaware, Florida, Hawaii, Illinois, Indiana, Louisiana, Maryland, Michigan, Minnesota, Missouri, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Dakota, Texas, Virginia, Washington, and Wisconsin.

WtW offices are located in social service agencies affiliated with the Alliance of Children and Families (ACF). ACF agencies screen and provide financial education to borrowers and service the loans. WtW local offices provide financial education to more than three persons for every individual who receives a loan. Investors in WtW include several national foundations, the Community Development Financial Institution Fund of the U.S. Treasury Department, local United Way offices, and financial institutions. Banks can be involved by investing in the national WtW loan fund, by referring to local WtW offices prospective borrowers who do not meet conventional credit criteria, by participating in local WtW loan committees, and by providing grants and in-kind donations to WtW.

For more information, contact President Jeff Faulkner at (414) 359-1448 ext. 2, e-mail him, or visit his Web site.

Tax Credits to Stabilize and Revitalize Neighborhoods

The St. Louis Equity Fund. (SLEF) was established to stimulate the development of affordable housing units throughout the St. Louis region and Missouri. SLEF accomplishes this through corporate investment using primarily low-income housing tax credits (LIHTC). Since its inception, SLEF has created 22 funds, which have invested in more than 100 projects to revitalize and stabilize housing in primarily low- and moderate-income neighborhoods. SLEF is seeking investors for its newest fund in 2008.

For more information, please contact John F. Kennedy, CFO, at (314) 436-7810 or e-mail him.

Southern District

Partnering to Create Affordable Housing in North Carolina and South Carolina

The North Carolina Bankers Association created the Community Investment Corporation of the Carolinas (CICCAR) in December of 1990 to address the shortage of affordable housing in that state. CICCAR is an affordable housing loan consortium that provides long-term, permanent financing for the development of low- to moderate-income multifamily housing, elderly housing, and special needs housing.

The consortium lends to affordable housing developments throughout North Carolina and South Carolina, in rural and urban communities. Loan capital is provided by 120 financial institution members using the voluntary loan-pool participation process. Membership is open to all financial institutions in those states.

The consortium began accepting applications in March 1991. It has committed and funded financing totaling approximately $158 million for 189 affordable housing developments, producing 8,800 units of low-income housing. Those developments are located throughout the Carolinas. Most were developed under the federal low-income housing tax credit program, and all were new construction or substantially rehabilitated multifamily, senior, or special needs housing developments.

Both nonprofit and for-profit organizations can apply for CICCAR financing. To be considered for a loan, at least 51 percent of the project units must provide housing for persons earning no more than 60 percent of the area median income. For information, please contact Executive Vice-President Cindy Wiggins-Tiede at (919) 781-7979 or (800) 662-7044, e-mail her, or visit her Web site.

An Investment Opportunity in Northwest Louisiana

The newly created $40 million Northwest Louisiana Community Development Fund I was established to finance local real estate projects to help revitalize low- and moderate-income (LMI) communities across Northwest Louisiana. The fund currently has more than $11 million in capital commitments. The fund’s sponsor, the Strategic Action Council, was created to enhance the capacity of the region to compete in today’s global, technology-driven economy.

JPMorgan Chase is the lead investor with family and national foundations, both national and community banks, and institutional investors, such as pension funds and university endowments joining the fund.

The fund seeks to deliver market rate returns to investors and to create jobs, income, and community revitalization for LMI residents in a 10-parish region (Bienville, Bossier, Caddo, Claiborne, DeSoto, Lincoln, Natchitoches, Red River, Sabine, and Webster). This region represents emerging markets with substantial potential to contribute to the growth of Northwest Louisiana. Initial investments are expected in summer 2008, based on a pipeline of projects including mixed-income, mixed-use, workforce housing, and commercial joint ventures with developers and builders in the communities.

For more information, contact Karen Kasteel, Managing Director for the Kennedy Wilson Fund Management Group, at (310) 877-3414 or e-mail her; or contact J. B. Beaird, Manager/CEO at Beaird Operating Companies (the Local Investor Group), at (318) 221-8276 or e-mail him.

Decreasing Home Foreclosures in Texas

The Texas foreclosure task force comprises local, state, and national nonprofit organizations and many other shelter-industry professionals. The group offers partnership opportunities for insured financial institutions to support Texas homeowners. The task force’s major campaign seeks to decrease home foreclosures by directing struggling borrowers to the HOPE Hotline, reachable at (888) 995-HOPE. Callers receive experienced, quality counseling and can be connected with their lenders or local NeighborWorks organization. The task force effort is part of a nationwide campaign in coordination with NeighborWorks America and the Ad Council.

For more information, contact David Long, Resource Development Committee Chair, Texas Foreclosure Prevention Task Force and President, Texas State Affordable Housing Corporation, at (512) 477-3555, ext. 402 by e-mail or visit his Web site.

Western District

ACCION New Mexico: Reaching Entrepreneurs

ACCION New Mexico is a CDFI and a member of the U.S. ACCION Network. The CDFI was created to increase access to business credit and training for emerging entrepreneurs throughout the state. The organization was founded in 1994 by New Mexico community and business leaders who sought to remove the barriers to credit for hardworking New Mexican entrepreneurs who had modest capital needs, thin credit histories, or limited collateral. Since its inception, it has financed more than 3,600 micro and small business loans in amounts of $200 to $150,000 to more than 2,000 businesses in more than 150 communities.

ACCION uses a "stepped lending" model that enables entrepreneurs to obtain small initial loans. After establishing a repayment history, they may apply for larger loans. More than $21 million in loans has created or sustained more than 3,500 jobs. The organization has a 94 percent repayment rate. ACCION achieved those statistics with the support of a network of banks and nonprofit partners throughout New Mexico.

ACCION uses referrals from previous customers, informational sessions, a phone application process, and mobile loan fairs to contact prospective clients. Almost 65 percent of the loans are made to low- and moderate-income clients. Of the client base, 57 percent of the clients are minorities, and 50 percent are women. ACCION operates under the leadership of a 29-member volunteer board and a permanent staff of 20. Most of the organization’s funding comes from private sources.

For more information, e-mail Anne Haines Yatskowitz, President and CEO.

Economic Development in Idaho

The Region IV Development Association (RIVDA) is a private, not-for-profit corporation established to encourage economic development, job creation, and diversification in an eight-county region of South-Central Idaho (Camas, Blaine, Gooding, Lincoln, Jerome, Minidoka, Twin Falls, and Cassia counties). Programs and projects carried out by RIVDA created more than 5,220 jobs and leveraged approximately $348.2 million in private-sector investment. RIVDA supported infrastructure planning and implementation, which developed safe and adequate water and sewer systems in more than 75 percent of the region’s communities, by leveraging more than $34.2 million of federal, state, and local funds.

RIVDA is the parent organization of the Region IV Development Corporation (RIVDC), a certified development company, certified by SBA to process loans for small business development under the SBA Section 504 loan program. RIVDC also administers a revolving loan fund (RLF) providing small business loans for projects under $100,000 for fixed assets, inventory, and working capital. RIVDC also administers an intermediary relending program (IRP) to increase economic activity and employment in rural communities with populations of less than 25,000. RIVDC encourages small business participation loans with their RLF and the IRP, and has ongoing opportunities for investments in these funds.

For more information, contact Joe Herring, Administrative Director, at (208) 732-5727 ext. 3003 or e-mail him. Additional information is available on RIVDA’s Web site.

OCC's Community Affairs Department