Zions Bank Press Release: Affordable Housing Grant
Rexburg Housing Development Receives $400,000 Affordable Housing Grant
BOISE, Idaho; May 19, 2015 — Zions Bank today presented a $400,000 Affordable Housing Program grant from the Federal Home Loan Bank of Seattle to Community Development, Inc., for its 48-unit rental project under construction in Rexburg.
The Grove at Riverside will serve residents earning from 40 to 60 percent of area median income and will include one non-income-restricted unit for a manager as well as 12 units for tenants with special needs. Residents will receive basic life skills and other empowerment services.
Community Development, Inc. has also received preliminary approval from the city of Rexburg to develop an ADA-accessible park adjacent to the development and the city’s Riverside Park that will include playground equipment, volleyball courts and a basketball court, according to Bill Truax, Chief Development Officer for Community Development, Inc.
“There’s a tremendous amount of need for affordable and market-rate housing for students as well as nonstudents,” said Truax, noting that his company’s Rockwell Court housing development in Rexburg, completed in 2013, leased quickly.
Truax said the Grove at Riverside parcel was difficult to develop because of the debris that had been buried on the site years ago, and he credited cooperation from the city of Rexburg, the Federal Home Loan Bank of Seattle, the Idaho Housing and Finance Association and Zions Bank for moving the project forward.
The Federal Home Loan Bank of Seattle (Seattle Bank) distributes its Affordable Housing Program funding through its member financial institutions, including Zions Bank, which work with for-profit and nonprofit organizations in their communities to address local affordable housing needs.
"The Seattle Bank is pleased to partner with Zions Bank in providing funding for this affordable housing project,” said President and CEO Michael L. Wilson. “We commend Zions Bank and Community Development Inc. for their support of the community, and look forward to seeing The Grove at Riverside come to fruition.”
Zions Bank provided an interim construction loan of $6.4 million and the project received $812,275 in annual low-income housing tax credits from the Idaho Housing and Finance Association. These credits were sold to RedStone Equity Partners in Cleveland, OH to provide equity for approximately 80% of the development costs. Utah Community Reinvestment Corporation has a financing commitment for $1.5 million of term debt.
“Zions Bank is committed to providing creative solutions to community needs and so we’re proud to be able to facilitate the grant funds and interim construction financing to fill a need for affordable housing in Rexburg,” said Aaron Elton, vice president and commercial relationship manager in Zions Bank’s Idaho Real Estate Banking Group.
The Grove at Riverside is on track for USGBC LEED for Homes Gold (or better) rating because of its commitment to energy efficient planning, design and construction, according to Truax. Located minutes from downtown Rexburg, the Grove at Riverside received a score of 91 from walkscore.com, which called the development a “Walker’s Paradise."
About Community Development, Inc.
At the CDI Group of Companies, we strive to develop and manage quality affordable housing as well as bring vitality to the communities we work and live in. We work with intention and deliver on everything we promise to do.
About the Federal Home Loan Bank of Seattle
The Federal Home Loan Bank of Seattle (Seattle Bank) is a member-owned cooperative, serving 319 financial institutions. The Seattle Bank provides its members with access to wholesale funding, which they use to make home mortgage, small business, and other loans in their communities.
The Seattle Bank also works with its members and their community partners to promote affordable housing and economic development. Each year, the bank provides 10 percent of its profits to fund affordable housing — both rental and homeownership — and provides millions of dollars in reduced-rate loans for affordable housing and community economic development.
The Seattle Bank’s Affordable Housing Program provides subsidy to acquire, construct, or rehabilitate affordable rental or owner-occupied housing for low- and moderate-income households. The Home$tart Program provides down payment assistance to qualifying homebuyers earning up to 80 percent of area median income. The Community Investment Program / Economic Development Fund offer reduced-rate loans for affordable housing and community economic development. All funding is distributed through the Seattle Bank’s member financial institutions.
One of 12 Federal Home Loan Banks in the United States, the Seattle Bank serves Alaska, Hawaii, Idaho, Montana, Oregon, Utah, Washington, Wyoming, American Samoa, Guam, and the Northern Mariana Islands.
About Zions Bank
Zions Bank, a division of ZB, N.A., operates 124 full-service financial centers throughout Utah and Idaho. In addition to offering a wide range of traditional banking services, Zions Bank is also a leader in small business lending and has consistently ranked as the No. 1 lender of U.S. Small Business Administration 7(a) loans in Utah for the past 22 years and Idaho’s Boise District for the past 14 years. Founded in 1873, Zions Bank has been serving the communities of the Intermountain West for more than 140 years. Additional information is available at www.zionsbank.com.