Habitat for Humanity of Oregon’s New Revolving Loan Seeded by the State (April 9, 2008 — Portland, OR)
Habitat for Humanity of Oregon (HfHO), a local nonprofit organization providing fundraising and outreach assistance to 34 affiliate offices across the state, has received a $500,000, 5 year, 0% interest loan from Oregon’s Housing and Community Services Department to be used as seed money for a revolving loan fund. Nancy Hamilton of the Governor’s Office will present the funds to HfHO at a dedication ceremony at on April 16th, 10 a.m., at 635 SE 197th Ave., Portland.
“Putting this money to work as a revolving loan fund will mean leveraging an amount that might typically purchase two homes in Oregon into providing hundreds of homes for hardworking families,” said Patricia Day TenEyck, Executive Director of HfHO.Any Habitat for Humanity affiliate in Oregon will be able to apply for funds to assist in the process of acquiring land, purchasing permits, paying fees, and other activities related to homebuilding and renovation. Payments on the loans, made by the borrowing affiliate, will replenish the fund, allowing for continued lending to additional Habitat for Humanity projects in Oregon.
The fund is designed to become self-sustaining within five years. As additional monies are invested in the fund, Habitat for Humanity will increase the number and amounts of loans to affiliates. “The skyrocketing number of foreclosures and loss of homes due to unethical lending practices has drawn our collective attention to the overall housing crisis—a problem that Habitat for Humanity has been addressing for decades in Oregon,” said Victor Merced, Director, OHCS. “Our solution turns predatory lending upside down, offering zero-interest loans with payments that remain stable and that almost any hardworking Oregon family can afford, rather than creating a situation in which they are forced to choose between buying groceries and paying their mortgage,” said Day TenEyck.
Habitat for Humanity, a nonprofit Ecumenical Christian housing organization, has been working in Oregon for 25 years. In that time, the default rate on mortgages has been less than 1%, lower than the national average. In addition to making regular mortgage payments, Habitat for Humanity partner families contribute 500 hours of labor on their own or other partner family’s home. By providing a hand up, not a hand out, the Habitat for Humanity program maintains the dignity and pride of homeowner families.