VHDA’S SINGLE FAMILY DEVELOPMENT DEPARTMENT
ANNOUNCES SECOND ROUND OF SPARC FUNDING
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Statewide Commitment of $51 Million Exceeds
2002 Allocations by $5.6 Million

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 $51 million in reduced rate loans from the second round of its SPARC (Sponsoring Partnerships and Revitalizing Communities) fund allocations.

Created by VHDA in 2002, SPARC encourages innovative ideas and strategic 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 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. Half of the 2003 allocations were committed as 1 percent reduced rate SPARC loans.

“We anticipate that these funds 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.”

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.

Allocations to VHDA’s strategic partners will increase homeownership rates among minorities, new immigrants, municipal workers, 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™.

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