Press Room
Media advisory For immediate release
ALIANT Bank joins Housing Enterprise of Central Alabama
Loan pool to develop housing for people of modest means grows to $55 million
BIRMINGHAM, Ala., September 1, 2006 – ALIANT Bank has joined the Housing Enterprise of Central Alabama (HECA), a niche lender that provides financing to qualified developers to build and rehabilitate moderately priced housing, HECA Chief Executive Officer Michele Jenkins-Utomi announced today.
With the addition of ALIANT, HECA has six investor banks in its consortium and a
$55 million loan pool, one of the largest of its kind in the United States.
“The Housing Enterprise of Central Alabama is doing an excellent job of increasing the production of moderately priced housing in our community,” said Dave Bair, Chief Executive Officer of ALIANT Bank. “We are delighted to join forces with HECA and the other Birmingham area banks to help make affordable housing a reality for the citizens of Central Alabama.”
“ALIANT has a strong record and commitment of service to the community, and we look forward to, and value tremendously, the input and expertise of Dave Bair and his team of professionals,” Ms. Utomi said. From the start, HECA has been about building strong alliances, and ALIANT is a great addition to this joint venture.”
Other participating banks are AmSouth Bank, Regions Bank, Compass Bank, New South Federal Savings Bank, and First American Bank, which joined earlier this year.
To date, HECA has disbursed $5.5 million in loans for single-family and multifamily housing. Closure is pending on an additional $13 million in new single-family loans.
That financing involves more than 600 units of housing.
As a HECA investor bank, ALIANT also is a contributor to the Housing Fund of Central Alabama (the Fund), HECA’s non-profit affiliate. The Fund also works to increase the production of moderately priced housing by providing grants to non-profits for core-operating support on a limited basis, technical assistance, and programs related to capacity building. In addition to HECA’s member banks, the Fund is financed by three area community foundations: The Community Foundation of Greater Birmingham, the Calhoun County Community Foundation, and the Walker Area Community Foundation. The Fund’s initial grant pool amount is $1.6 million. To date, the Fund has distributed nearly $400,000.
www.housingenterprise.com
HECA and the Fund provide niche products and services as a means of meeting needs that are otherwise not being met in the private market, as well as act as advocates for affordable housing policies and efforts. Loans to qualified private and non-profit developers can be structured to provide up to 100% project financing with limited recourse. Eligible projects include: single family housing or multi-family; acquisition and rehabilitation; new construction; and subdivision development.
HECA also partners with the Fund to provide gap financing to qualified non-profit and private developers. This may take the form of a grant, mezzanine debt or forgivable loan. This partnership capacity is unique in the region, and was purposeful on the part of the founders.
Through its grants, the Fund also supports ancillary services such as homebuyer training and credit counseling, which help to bolster the success and sustainability of communities. One of the Fund’s major projects is an incubator program for non-profits whose mission is to build and rehab affordable housing in area neighborhoods. Non-profits from Birmingham, Tuscaloosa, and Anniston are participating in the project, which began in October 2005.
Based in downtown Birmingham, HECA opened in 2003 to serve 12 counties in Central Alabama: Bibb, Blount, Calhoun, Chilton, Cullman, Etowah, Jefferson, St. Clair, Shelby, Talladega, Tuscaloosa and Walker.
Please contact: Tabitha J. Lacy, Communications, Housing Enterprise of Central Alabama, 205-323-9888, tlacy@housingenterprise.com. At ALIANT Bank, please contact: Faith Black, Marketing, 205-408-2017, fblack@aliantbank.com.
About ALIANT: ALIANT Financial Corporation, the holding company of ALIANT Bank, is a $900-million community bank with corporate offices in Birmingham and Alexander City, Alabama. Started in 1900, the corporation operates 14 offices in the Birmingham, Montgomery and Tallapoosa County regions of Alabama. ALIANT offers a complete line of banking and other related financial services to commercial, retail and real estate customers. For more information, visit the company website located at www.aliantbank.com. Member FDIC. Equal Housing Lender.
The Housing Enterprise of Central Alabama is an Equal Housing Lender
(ALIANT Logo is attached)
Equal Housing Opportunity