Non-profits Team Up for Affordable Housing

Fort Collins, Co, August 20, 2008 – Funding Partners (FP) and Mile High Community Loan Fund (MHCLF) recently executed a Memorandum of Understanding which establishes a mutual interest in leveraging resources to benefit low and moderate-income households across the state.  Designated as Community Development Financial Institutions (CDFIs) through the U.S. Department of the Treasury, each organization attracts capital investments which are subsequently utilized to extend favorable financing terms to housing and community facility projects. 

With a similar public mission, each organization recognized the need to coordinate efforts while retaining unique identities within the marketplace.  As defined within the Memorandum, the organizations will provide certain operational redundancies considered critical to fluid delivery of financial services in the event of business disruption.  Additionally, the agreement identifies a mutual interest to improve economic efficiencies, further development of geographic markets, and establishing a more seamless service delivery model to addresses numerous community needs.  With combined capital well in excess of $20 million dollars, each organization provides early-stage and gap financing to non-profit and private sector developers of rental and ownership housing inventory.  However, each has developed products to serve specific market niches and further benefit households and communities underserved by traditional financial institutions.

Funding Partners services include: the House to Home Ownership Program (H2O)®, a down payment assistance service provided to first-time homebuyers; Employee Home Ownership Program (EHOP)®, an employer sponsored assistance program; and, Contract Loan Services, which provides third-party loan and revolving loan fund administration for smaller programs across the state. 

In addition to residential development financing, Mile High Community Loan Fund also provides early stage and gap financing to non-profit organizations to acquire, rehabilitate or develop non-residential facilities.  Through common interests, capital sources and market areas served, the two agencies have partnered on several occasions to maximize impact and better manage credit exposure.

“The collaboration with Funding Partners makes sense on so many levels,” said Jeff Seifried, Executive Director Mile High Community Loan Fund. “But, most importantly it helps strengthen our ability to finance more affordable housing development in Colorado .”

The partnership will enhance the performance of both companies in the areas of: Loan Participation, Integration of Information Technologies, and Crisis Management.  Loan participation between the two agencies allows for higher loan limits for the affordable housing developer thus enhancing the availability of funds at consistent terms under a single loan.  Integration of information technologies increases the efficiency and compatibility between Funding Partners and Mile High Community Loan Fund.  Increased efficiency through integration also led to the development of a crisis management agreement in the event of any physical or natural disasters, substantial loss of personnel, or any event that would inhibit the day to day functions of either agency. 

Pat Brady , President of the Funding Partners Board of Trustees, points out, “There is a growing recognition among non-profit agencies that strict independence is not necessarily beneficial.  Just like any business, there are numerous advantages in considering partnerships where market overlap and mutual trust exist.”  Brady continues, “A great deal of credit goes to the governing boards of both organizations in recognizing we can better serve our communities together than alone.” 

The strengths within each organization, along with shared vision and goals have contributed to the interest in collaboration. By 2008 Funding Partners and the MHCLF had participated in 3 loans for $3,450,000 and together had helped finance 177 units of affordable housing and leverage an additional $15,185,000 of investment.

For more information on FP, visit www.fundingpartners.org

For more information on MHCLF, visit: www.mchlf.org

CONTACT:

  Megan Gifford

Funding Partners for Housing Solutions

970-494-2021

 [email protected]