HomesFund Awarded $350,000 to Provide Downpayment Assistance
HomesFund, a Durango-based nonprofit and Community Development Financial Institution (CDFI), has been awarded $350,000 from the U.S. Treasury’s Community Development Financial Institution Fund. These funds will be used to provide downpayment assistance to eligible families seeking to buy a home in southwest Colorado.
“Homeownership adds stability to a family and a community, and these programs help families to reach the American dream of homeownership,” says Lisa Bloomquist Palmer, Executive Director of HomesFund. “We provide assistance to the workers of our community, including teachers, administrative assistants, restaurant workers, police officers, construction workers, and others who want to put down roots but cannot afford the high cost of housing in the area.”
HomesFund’s downpayment assistance loans bridge the gap between what a household can afford and the market rate price of housing—which is increasingly out-of-reach for middle-class households. The HomesFund downpayment assistance loans are typically silent shared appreciation loans in which the borrower does not make monthly payments, however when they sell or refinance their home, the principal is paid back plus the appreciation is shared pro-rata with HomesFund. As loans are repaid, loan-fund capital is recycled to make additional loans. Since 2008, HomesFund has provided over $5.2 million in downpayment assistance and created over 521 homeowners.
The U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund announced $208.7 million in awards for 303 Community Development Financial Institutions nationwide. The CDFI Fund invests in and builds the capacity of CDFIs serving low-income people across the nation. The awards will enable CDFIs, such as HomesFund, to offer affordable financial products and services that meet the unique needs of economically underserved communities across the nation. HomesFund was one of six awardees in the state of Colorado.
2017 CDFI Program and NACA Program Award Resources