GULFPORT, Miss., Oct. 30, 2013 (GLOBE NEWSWIRE) -- The South Mississippi Housing and Development Corp. (SMHD) received a $500,000 Affordable Housing Program (AHP) grant from the Federal Home Loan Bank of Dallas (FHLB Dallas) and The Peoples Bank that will enable it to rebuild housing for Gulfport's elderly residents.
The grant will help pay for the demolition and reconstruction of the 80-unit Sanderson Village Homes apartment complex, originally built in 1972. The complex suffered significant flood damage from Hurricane Katrina.
In addition to the AHP grant, Low Income Housing Tax Credits and public housing funds will help finance the $14.2 million project, according to Demetria Simpson, president and CEO of SMHD.
"With HUD's funding cuts, a lot of housing authorities and their nonprofit instrumentalities have had to be creative when it comes to identifying sources of funding to leverage with existing funding sources," she said. "We always see AHP grants as a significant resource to pursue. This grant is very significant because it helps us to bridge the funding gap we sometimes experience when putting together our deals. Securing this grant award from the Federal Home Loan Bank of Dallas was a huge success for us."
Demolition of the existing property is expected to occur around the end of October and the new Sanderson Village Homes should be ready for occupancy by early 2015. Residents who were living in the complex have already been relocated to alternative housing in order to prepare for the demolition.
Like the current two-story apartment complex, the new senior housing development will contain 80 units, including one and two bedroom apartments. The building will have an elevator — making it more accessible for its target population of residents 62 and older.
Other amenities will include washers, dryers, and ceiling fans. The complex will also have a community room with a business center and will provide supportive services for residents such as nutrition and wellness programs and transportation assistance.
The elderly struggling to pay their bills sometimes must choose whether to pay for food and medicine or utilities and rent each month, she added. "That is something that nonprofits and housing authorities have to address to ensure that as the elderly get older there is available housing, and it is affordable to them so they don't have to worry about making a decision on what to pay each month, whether it is rent, prescriptions or food."
Chevis Swetman, president of The Peoples Bank, said there is high demand for safe and affordable housing for the city's elderly.
"We are pleased that South Mississippi Housing and Development Corp. found a way to convert the old Sanderson Village into new housing for some of our city's most vulnerable residents," he said. "The AHP is a great program that supports a basic need that many of us tend to take for granted — affordable and safe housing. We are happy to partner with FHLB Dallas in funding this project."
AHP grants are awarded through FHLB Dallas member financial institutions, such as The Peoples Bank, to assist in the development of affordable, owner-occupied and rental housing for very low- to moderate-income households. This year, FHLB Dallas awarded $11.3 million in AHP grants to 36 projects across its five-state District of Arkansas, Louisiana, Mississippi, New Mexico, and Texas. The funding will result in the creation or rehabilitation of 1,654 housing units across the District.
About the Federal Home Loan Bank of Dallas
The Federal Home Loan Bank of Dallas is one of 12 district banks in the FHLBank System created by Congress in 1932. FHLB Dallas, with total assets of $31.3 billion as of September 30, 2013, is a member-owned cooperative that supports housing and community development by providing competitively priced advances and other credit products to approximately 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico, and Texas.
CONTACT: Corporate Communications Federal Home Loan Bank of Dallas www.fhlb.com (214) 441-8445
Source:Federal Home Loan Bank of Dallas