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Contact: Tabitha J Lacy, 323-9888

August 5, 2004

ALETHEIA HOUSE TO BE HONORED AUG. 5 FOR WINNING NATIONAL AFFORDABLE HOUSING AWARD FOR AVONDALE GARDENS VENTURE

BIRMINGHAM, AL — A celebration was held today to honor an affordable housing development in Avondale that is one of six national winners of the Fannie Mae Foundation Maxwell Awards of Excellence.

Aletheia House was honored for its Avondale Gardens affordable housing venture by U.S. Rep. Artur Davis and others during a celebration Aug. 5 at the Church of Christ Avondale, 4252 Second Ave. South. A reception and home tours followed the program.

Special guest was Birmingham native Glen S. Howard, Senior Vice President and General Counsel of the Fannie Mae Foundation in Washington D.C., a private non-profit created by Fannie Mae and the largest U.S. foundation devoted to affordable housing and revitalizing communities. The Housing Enterprise of Central Alabama, host for the celebration, is a Birmingham-based 12-county initiative that provides capital and technical assistance to the affordable housing development community, including Avondale Gardens.

The $5.5 million development, located in the 4200-4300 blocks of Second and Third Avenues South, became fully occupied in March. The 64-unit affordable rental is targeted primarily to families whose income is up to 60 percent or less of the area median income. Fifteen percent of the apartments are set aside for formerly homeless people who are recovering from mental illness or substance abuse.

The developer, Aletheia House, is a non-profit that has provided substance abuse treatment and prevention services for 30 years. While the agency has developed transitional housing for its clients for several years, this is its first permanent housing development, and the first housing available to the broader community, said executive director Chris Retan.

"The Maxwell Committee was impressed by the cooperative partnership that made Avondale Gardens possible," Retan said. "There was an enthusiastic response to this project from the neighbors, neighborhood leaders, the City of Birmingham, elected officials, local financial supporters, the Alabama Housing Finance Authority and our national partners, including the Enterprise Social Investment Corp. The willingness of our partners to embrace the vision of Avondale Gardens when it was abandoned property in a neglected neighborhood made winning this award possible."

Another unique feature of the development is how it blends into and lifts up the surrounding neighborhood. Aletheia House hired a design consultant, Jeremy Erdreich, Erdreich Architecture, to ensure that the project design was appropriate and attractive to the existing historic neighborhood, Retan said. "The high-quality design helped turn neighborhood opponents of affordable homes into advocates, and has drawn the attention of private developers to the struggling Avondale neighborhood," he said.

One resident, Scott Hamrick, described the apartments as "the nicest I have ever been in."

"I couldn't believe it the first time I saw them," Hamrick said. "The rooms are huge and everything is energy-efficient, which really keeps your power bill low. I live on the lower floor, so I have my own private courtyard, where I can grill and visit with friends."

Applicants for the 15th annual Fannie Mae Foundation's Maxwell Awards of Excellence were evaluated on the basis of creativity in addressing local housing needs, quality of design, originality and innovation in financing and affordability, and success in implementation. The awards program seeks to encourage and recognize non-profits working to develop and maintain housing for low-income Americans, and to encourage corporations and foundations to be involved as funding and investment partners. Aletheia House won in the "affordable rental" category.

"This project is truly deserving of this prestigious award," said Michele Jenkins-Utomi, Chief Executive Officer of the Housing Enterprise of Central Alabama. "It exemplifies what can be done when an organization sets its mind to the task of providing affordable housing. It's all about partnerships and connections. None of us can do it alone. If we decide as a community and a state that we want to do this, then there is no end to what we can accomplish. Avondale Gardens proves it is worth the effort."

The Maxwell Award includes a $50,000 grant, which Retan said the agency plans to use to help set up a separate non-profit housing development corporation by spring 2005.

HECA's affiliate non-profit, the Housing Fund of Central Alabama, awarded a grant to Aletheia House in June to help cover the costs of developing a business plan.

Aletheia House and Charter Development Corp., of Auburn, are co-developers. Avondale Gardens funding included the following:

  • Low Income Housing Tax Credits: syndicated by the Enterprise Social Investment Corp., Columbia, Md.;
  • Construction Financing: AmSouth Bank, Birmingham;
  • Permanent Financing: Housing Enterprise of Central Alabama, Birmingham;
  • City of Birmingham, grant;
  • Federal Home Loan Bank of Atlanta, grant.

The Housing Enterprise of Central Alabama grew out of an affordable housing initiative launched in 2002 by Region 2020 and funded by major financial institutions and community foundations.

Contact Aletheia House and Chris Retan at 324-6502 or Chris_Retan@yahoo.com

For more information on the Maxwell Awards and the Avondale Gardens project, go to the Fannie Mae Foundation website at www.fanniemaefoundation.org.