Housing Fund Of Central Alabama

The Fund

Press Room

Media advisory For immediate release

Housing Fund to unveil Non-Profit Affordable Housing Affliate,
Red Iron Housing Development Company, at Open House set for May 16

BIRMINGHAM, AL – May 10, 2007 – The Housing Fund of Central Alabama will unveil its non-profit housing development company at an Open House on May 16.

The event to showcase Red Iron Housing Development Company will begin at 10 a.m. at 1305 Bush Boulevard in the Bush Hills neighborhood. This house is one of two that Red Iron has renovated in the community.

The goal of the new company is to bring more quality housing to the moderate-income market. Red Iron is targeting single-family homes and apartments primarily in the City of Birmingham neighborhoods for renovation and resale. Red Iron also recently acquired the Forest Park Terrace Apartments in the South Avondale neighborhood.

Significantly increasing the supply of safe, decent, moderately priced housing has been at the heart of the mission of the Housing Enterprise of Central Alabama (HECA) and its non-profit affiliate, the Housing Fund of Central Alabama (the Fund) since the two companies opened in 2003.

“In the Birmingham market, quality, affordable, single-family homes available to families whose annual incomes range from $34,000-$57,000 are few,” said HECA Chief Executive Officer Michele Jenkins-Utomi, who also oversees Red Iron activities. “Red Iron allows the Fund to become an even bigger part of the housing solution by focusing on the renovation and resale of neglected houses in underserved neighborhoods.”

HECA is a $56.5 million community development loan consortium made up of the top banks in Birmingham – Regions Bank, Compass Bank, New South Federal Savings Bank, First American Bank, Superior Bank, and Aliant Bank. HECA loans money to non-profit and private developers to build and renovate moderately priced housing in a 12-county area of Central Alabama.

The Housing Fund of Central Alabama provides grants and technical assistance to non-profit developers of affordable housing in the 12-county footprint. Its grant pool is funded by HECA’s investor banks and area community foundations, including The Community Foundation of Greater Birmingham, the Community Foundation of Calhoun County, and the Walker Area Community Foundation. Lois Chenier is the Grants Officer who oversees Fund grants and the Fund’s Non-Profit Incubator Program.

Red Iron Housing Development Co.’s focus is to acquire homes that can be renovated and resold generally in the $120,000-$170,000 price range, and multifamily with targeted rents of $425-$525.

“Red Iron provides us an opportunity to get into development in a specific way,” Ms. Jenkins-Utomi said. “The City has some wonderful neighborhoods, and housing stock that needs repairs to attract and retain families who want to be a part of these communities of such potential. What we have done in Bush Hills is to get these homes ‘homebuyer ready.’ We believe we’ve gone beyond the scope of what most investors would put into these homes.”

Red Iron is able to keeps its projects affordable in part because it is using HECA loan dollars and Fund grant dollars for projects. HECA’s Loan and Investment Committee approved a $500,000 revolving line of credit for Red Iron to do rehab. The HECA/Fund Board and the Fund’s Capacity Building Advisory Committee approved a $300,000 Fund grant for Red Iron to purchase homes.

HECA and the Fund work closely with HECA’s financial consultants, Birmingham-based Censeo, Inc., on Red Iron projects. They are forming partnerships with experienced contractors and real estate agents in order to ensure Red Iron’s success. Ms. Jenkins-Utomi said Red Iron is working with Realtors to identify other properties in the City of Birmingham.

The Fund has invited several guests to share in the May 16 celebration, which will be hosted by HECA’s Board Chair, Jerry Powell, General Counsel and Secretary of Compass Bancshares and its lead bank, Compass Bank, and Ms. Jenkins-Utomi. Attendees include: Daryl Perkins, District Director, Office of U.S. Representative Artur Davis; Birmingham City Councilor Steven W. Hoyt; Bush Hills Neighborhood President Alma Dennis; and The Community Foundation of Greater Birmingham Senior Program Officer Patti Whitt. The contributions of Superior Bank and Aliant Bank to HECA also will be highlighted at the event.

In addition to the home at 1305 Bush Boulevard, Red Iron has renovated a nearby house at 1212 Bush Circle. That home sold last month.

For more information about Red Iron or the Open House Event, please contact Tabitha J Lacy, 205-323-9888 or tlacy@housingenterprise.com.