LITTLE ROCK, Ark.--(BUSINESS WIRE)--Bank OZK and the Federal Home Loan Bank of Dallas (FHLB Dallas) provided more than $53,000 in Partnership Grant Program (PGP) grants to In Affordable Housing and University District Development Corporation (UDDC).
In Affordable Housing, which received $30,000, creates and preserves affordable housing opportunities in targeted neighborhoods for families with limited incomes. The organization also provides training, financial education and advocacy for limited-income families.
UDDC, which received $23,185, administers a revitalization program for the residential and commercial neighborhoods adjacent to the University of Arkansas at Little Rock.
Roma Isom, In Affordable Housing’s executive director, said the funds will help offset the cost of capacity building and contractual services for single-family residential construction targeting very low- to moderate-income individuals.
This is the first year the organization has received a PGP grant. Mr. Isom said the grant will help provide many families the opportunity to own a home.
“The biggest hurdles for first-time homebuyers are that they don’t have the down payment and closing costs,” Mr. Isom said. “A lot of times they have credit issues, but these funds that we are receiving from Bank OZK and FHLB Dallas will allow us to put people in houses that probably wouldn’t have had the opportunity if it weren’t for this program.”
UDDC will use the money to acquire lots, and cover the costs of various contractual fees associated with building new houses.
“What we’re trying to do is work to fill that gap as it relates to safe, decent and affordable housing available throughout the University District,” UDDC Executive Director Barrett Allen said.
This is the fourth time UDDC has received a PGP grant. Mr. Allen said the organization had reached its PGP grant limit years ago, and he was thrilled when the grant’s lifetime limit was raised so they could continue to benefit from the program.
“The Partnership Grant Program is also important when it comes to continuing to allow organizations to provide the services they promise to the community,” Mr. Allen said. “FHLB Dallas and its member banks have continued to support our funding for years with the PGP grant, even when others were backing out and only wanted their money to go toward programs.”
Bank OZK Community Development Manager Lasha Marshall said the PGP is very important to communities.
“Bank OZK is honored and appreciates working with organizations like In Affordable Housing and UDDC to address the need for affordable housing in Little Rock,” said Ms. Marshall. “The Partnership Grant Program allows us to increase the opportunity for low income families to be able to purchase homes, revitalize neighborhoods and strengthen communities.”
Funding under FHLB Dallas’ PGP was increased by $2 million in 2020 under FHLB Dallas’ COVID-19 Relief Program to support CBOs involved in affordable housing activities, stimulating small business development or providing small businesses with technical assistance. The use of funds for these organizations was expanded to include COVID-19 relief.
Through this unique grant program, FHLB Dallas member institutions contribute from $500 to $6,000 to a CBO, which FHLB Dallas matches at a new, higher 5:1 ratio (compared to the previous 3:1 ratio) resulting in a match of up to $30,000. If multiple member institutions contribute to the same CBO in one year, the maximum FHLB Dallas match for those member contributions is $60,000 per year. In both cases, the total grant to the CBO would be the sum of the member contribution(s) plus the FHLB Dallas match. Grants are awarded annually through FHLB Dallas and its member institutions.
“Member institutions such as Bank OZK have taken full advantage of the Partnership Grant Program this year to help fund great work in the community investment sector,” said Greg Hettrick, first vice president and director of Community Investment at FHLB Dallas. “FHLB Dallas is honored to help nonprofits in Arkansas provide the affordable housing that low- to moderate-income families need.”
To learn more about the PGP, visit fhlb.com/pgp.
About Bank OZK
Bank OZK (Nasdaq: OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Bank OZK has been recognized as the #1 bank in the nation in its asset size for eight consecutive years. Headquartered in Little Rock, Arkansas, Bank OZK conducts operations through 251 offices in Arkansas, Georgia, Florida, North Carolina, Texas, Alabama, South Carolina, California, New York, and Mississippi. Bank OZK can be found at ozk.com and on Facebook, Twitter and LinkedIn or contacted at (501) 978-2265 or P. O. Box 8811, Little Rock, Arkansas 72231-8811.
About the Federal Home Loan Bank of Dallas
The Federal Home Loan Bank of Dallas is one of 11 district banks in the FHLBank system created by Congress in 1932. FHLB Dallas, with total assets of $83.8 billion as of March 31, 2020 is a member-owned cooperative that supports housing and community development by providing competitively priced advances and other credit products to approximately 805 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. Visit fhlb.com for more information.