VHDA Press Releases


FOR IMMEDIATE RELEASE
January 21, 2003


CONTACT: Nick Scola
804-675-8176
nscola@crtpr.com


VHDA’S SINGLE FAMILY DEVELOPMENT DEPARTMENT ANNOUNCES COMMITMENT OF SPARC FUNDS FOR HAMPTON ROADS HOUSING PARTNERS
- - -
Commitment Totaling More Than $20 Million to Benefit Regional Housing Needs

RICHMOND, Va. (Jan. 21, 2003) – Today, in an effort to stimulate the development of housing for low- and moderate-income homebuyers, VHDA announced the commitment of reduced rate loans for the second round of its SPARC (Sponsoring Partnerships and Revitalizing Communities) fund allocations.

In the Hampton Roads region, the following localities will receive 2003 SPARC funding:

· Chesapeake Redevelopment and Housing Authority will receive $2,023,000 to focus on the increase of homeownership rates among minorities

· Community Housing Partners will receive $3 million to focus on the increase of homeownership rates among new immigrants and minorities

· Hampton Redevelopment and Housing Authority will receive $1,400,500 to focus on the increase of homeownership rates among Housing Choice Voucher recipients

· James City County will receive $2,280,000 to focus on the increase of home-ownership rates among minorities

· Williamsburg Redevelopment and Housing Authority will receive $1,575,000 to focus on the increase of homeownership rates among minorities, residents of public housing and residents of the city

· Newport News Redevelopment and Housing Authority will receive $765,000 to focus on the increase of homeownership rates among minorities, new immigrants, municipal workers or special needs populations

· Norfolk Redevelopment and Housing Authority will receive $8 million to focus on the increase of homeownership rates among minorities and persons residing in public housing

· Virginia Beach Community Development Corporation will receive $600,000 to focus on the increase of homeownership rates among minorities and new immigrants

· Suffolk Redevelopment and Housing Authority will receive $500,000 to focus on the increase of homeownership rates among minorities
Created by VHDA in 2002, SPARC encourages innovative ideas and partnerships among local governments, redevelopment and housing authorities, non-profit housing advocates and for-profit developers to create housing that will be affordable to underserved populations.

“SPARC enables local agencies to address critical housing needs in their communities,” said VHDA Managing Director of Development Don Ritenour. “Although the real impact of this funding cannot be realized within a year, we are encouraged by the early results, and we are excited about future possibilities.”

The SPARC program loans have an interest rate that is either a ½ or 1 percent lower than VHDA’s regular, low-interest rate loans, which would place them currently in the 4 to 4½ percent range.

VHDA announced the availability of SPARC funds in early October. Applications received in mid-December exceeded $72 million. After extensive evaluations, allocations totaling more than $51 million were awarded in mid-January to 24 applicants statewide. Half of the 2003 allocations were committed as 1 percent reduced rate SPARC loans.

“We anticipate that these statewide commitments will finance more than 470 single family units of affordable housing,” said VHDA Executive Director Susan Dewey. “Programs like SPARC demonstrate what we mean when we characterize VHDA as a mobilizing force for affordable housing.”

The goal of these allocations is to increase homeownership rates among minorities, new immigrants, special needs populations and low- and moderate-income borrowers.

VHDA is Virginia’s housing finance agency and is self-supporting. VHDA issues bonds to raise private capital to provide low-interest rate loans to consumers to purchase or renovate homes, and loans to developers for the development, rehabilitation and renovation of rental units to deliver safe, decent, affordable housing. Affordable Housing Starts Here™.

NOTE: While the goal of this allocation is to serve minorities, municipal workers, new immigrants, recipients of Housing Choice Vouchers, families participating in self-sufficiency programs and other special needs populations, the targeted outreach for this funding may change based on market needs.


###