The Housing Fund, Inc. noted for creation of the Alternative Payment Plan
(Nashville, TN, August 17, 2016) – The Housing Fund, Inc. (THF) won a $100,000 Wells Fargo NEXT Seed Capital Award to implement its strategy to launch its innovative consumer finance product in Tennessee.
The Housing Fund is establishing home loan solutions for immigrant communities, seeking affordable and ethical housing financing in Tennessee. The Nashville and Middle Tennessee area is home to over 80,000 Kurds, Egyptians and Somalis, as well as many Sudanese and Hispanics. The Housing Fund is working closely with representatives of the local community and local bankers to implement the Alternative Payment Plan mortgage loan product in compliance with cultural norms and ethical financing.
THF’s mission is to provide resources and creative leadership to help individuals and communities create and maintain affordable and healthy places in which low and moderate income people live. Since 1996, THF has loaned over $83 million dollars for more than 5,500 housing units. This has leveraged over $700 million in private financing. THF offers down payment assistance loans for low-to-moderate income homebuyers, provides short-term financing for the construction and/or rehabilitation of affordable housing, loans to create and preserve affordable artist live and work space, as well as a variety of other loan programs.
“As a Community Development Financial Institution (CDFI), we play an important role in generating economic growth by investing in opportunities that transform lives and places for disinvested people. We make our economy stronger, one opportunity at a time, and with this expansion provided by the NEXT Award, THF will have the potential to finance more than $4.9M in loans and serve a minimum of 300 households,” said Joan Davis, Interim CEO of THF.
“Never before has it been more necessary for CDFIs to embrace fintech, explore new distribution models, and develop leading-edge, responsible financial products. THF’s innovative consumer finance strategy proves that community lenders are the next frontier for innovation in responsible consumer finance,” said Fran Lutz, interim CEO of Opportunity Finance Network (OFN), the nation’s premier CDFI network.
OFN presents the NEXT Awards in partnership with Wells Fargo and Prudential and support from the John D. And Catherine T. MacArthur Foundation and the Kresge Foundation.
For more information visit NEXTawards.org.
About the Awards
The Wells Fargo NEXT Awards for Opportunity Finance celebrate the CDFI industry—its creativity, accomplishments, and enduring importance.
This year marks the 10th anniversary of the NEXT Awards. Launched in 2007, the NEXT Awards celebrate the innovation of the nation’s most promising CDFIs by awarding more than $76 million through a competitive awards process. Each year the NEXT Awards culminates in a ceremony at OFN’s Annual Conference to spotlight Awardees and the entire CDFI industry.
About the Groups behind the Awards
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.9 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,600 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries and territories to support customers who conduct business in the global economy. With approximately 268,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 27 on Fortune’s 2016 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Wells Fargo perspectives are also available at Wells Fargo Blogs and Wells Fargo Stories.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with over $1 trillion of assets under management as of June 30, 2016, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit www.news.prudential.com.
The John D. and Catherine T. MacArthur Foundation supports creative people, effective institutions, and influential networks building a more just, verdant, and peaceful world. MacArthur is placing a few big bets that truly significant progress is possible on some of the world’s most pressing social challenges, including over-incarceration, global climate change, nuclear risk, and significantly increasing financial capital for the social sector. MacArthur has been a leading supporter of the Opportunity Finance field since the early 1980s, investing nearly $250 million in approximately 100 groups nationwide. More information is available at: www.macfound.org.
The Kresge Foundation is a $3.6 billion private, national foundation that works to expand opportunities in America’s cities through grantmaking and social investing in arts and culture, education, environment, health, human services, and community development in Detroit. In 2015, the Board of Trustees approved 371 grants totaling $125.2 million, and nine social investment commitments totaling $20.3 million. For more information, visit kresge.org.
Opportunity Finance Network (OFN) is the leading national network of community development financial institutions (CDFIs) investing in opportunities that benefit disinvested communities across America. Through 2014, OFN’s network originated over $42 billion in financing in urban, rural, and Native communities, with a net charge-off rate of less than one percent. For more information, visit ofn.org.