SEARCY, Ark., Sept. 14, 2012 (GLOBE NEWSWIRE) -- Two affordable housing developments will undergo necessary repairs and improvements thanks to Affordable Housing Program (AHP) grants from First Security Bank and the Federal Home Loan Bank of Dallas (FHLB Dallas).
A $150,000 AHP grant was awarded to help rehabilitate Independence Village Apartments, a 20-unit apartment complex in Newark, Arkansas. Another $140,000 AHP grant will help rehabilitate Mammoth Spring Housing, a 20-unit development in Mammoth Spring, Arkansas. Both developments serve very low-income, elderly residents, as well as residents with disabilities.
Both developments will get improvements such as new paint, siding, and cabinets, as well as heating and air conditioning upgrades and energy efficient appliances, which will help residents lower their energy bills. Mammoth Spring Housing will also require structural repairs and improvements.
"The AHP grants are critical, as the rehab likely wouldn't be done or it would be significantly delayed while we searched for other funds to complete the work," said Nona Robinson, an attorney and vice president for Professional Property Management, Inc., the management agent for both properties. "Both buildings need a substantial amount of work, including work on the HVAC units and electrical wiring. There is a significant amount of work to be done."
Professional Property Management, Inc. worked with First Security Bank in Searcy, Arkansas, to secure the AHP grants.
"They were great partners," Ms. Robinson said. "They were very supportive of the goal and the idea, and they were right there with us through every step of the process."
Each year, FHLB Dallas returns 10 percent of its profits in the form of AHP grants that are distributed through its member institutions, such as First Security Bank. AHP grants assist in the development of affordable, owner-occupied and rental housing for very low- to moderate-income households located primarily within FHLB Dallas's five-state District of Arkansas, Louisiana, Mississippi, New Mexico, and Texas.
"First Security Bank is pleased to partner with FHLB Dallas to provide much needed repairs to two apartment communities that serve one of our most vulnerable populations – the elderly," said First Security Bank Chairman and CEO Reynie Rutledge. "Through the AHP funding, elderly residents of Mammoth Spring Housing and Independence Village Apartments will continue to have a safe and affordable place to live as a result of the repairs that will be made."
Mammoth Spring Housing was built in 1986 and Independence Village was constructed in 1990. Each project was built with a HUD Section 202 loan and has 15 one-bedroom units and five efficiency units.
"These properties have lived a life," Ms. Robinson said, adding that they had both fallen into disrepair, which has led to other issues.
"Both Independence Village and Mammoth Spring Housing have had, and are having, vacancy problems that we're working on, but the rehab is going to be critical for us to be able to rent the units," she said. "We've got to get the work done to be able to rent them."
Professional Property Management is a sister company to Leisure Homes Corporation, which is the developer for the project.
AHP funding is utilized for a variety of projects, including emergency home rehabilitation for low-income, elderly and disabled residents; down payment and closing cost assistance for qualified first-time homebuyers; and the development and construction of low-income, multifamily apartment communities and single-family subdivisions.
In 2012, FHLB Dallas, in partnership with its member institutions, awarded $7.6 million in AHP grants to 27 affordable housing projects, including $389,000 in the state of Arkansas to create or rehabilitate 51 housing units.
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 $34.7 billion as of June 30, 2012, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to more than 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico, and Texas. For more information, visit the FHLB Dallas website at fhlb.com.
The Federal Home Loan Bank of Dallas logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3013
About First Security Bank
First Security Bancorp is the state's second-largest Arkansas-based financial services holding company with assets of $4.37 billion, $600 million in total capital, and more than 900 employees across 70 statewide locations. The company offers solutions for the financial needs of individuals, businesses and the public sector through a network of local community banks, investment banking and wealth management services, public finance, trusts, and mortgage services.