Housing Enterprise Of Central Alabama - Timeline of Accomplishments

HECA

Timeline of Accomplishments

2003

NOVEMBER

• HECA opened its offices at the Center for Regional Planning and Design in downtown Birmingham. Prior to the move, Region 2020, HECA’s founding organization, had provided office space.

DECEMBER

• HECA partnered with Congressman Artur Davis to do its first Affordable Housing Conference in Birmingham. Congressman Davis brought together Birmingham area affordable housing industry participants to meet with Boston peers to learn best practices, and to begin a collaboration of the local group. HECA agrees to reconvene the group in April.

2004

MARCH

• The Housing Fund of Central Alabama provided a $40,000 grant to Debt Relief Counseling Service (DRCS) to provide core operating support. DRCS provides services such as credit repair and counseling, mortgage assistance and counseling, and home ownership and maintenance counseling.

APRIL

• HECA hosts the second affordable housing conference in April, which reconvened all sectors of the affordable housing industry to address home ownership barriers for low- and moderate-income families in Birmingham. Speakers include: U.S. Congressman Artur Davis; Birmingham City Council President Lee Loder; City of Birmingham Director of Community Development Jim Fenstermaker; HECA Board Chair Ted Kennedy, Founder, BE&K Inc.; and HECA Chief Executive Officer Michele Jenkins-Utomi.

• A home ownership center aimed at helping people qualify to buy affordable homes in the East Lake neighborhood of Birmingham opened in April.

The DRCS Home Ownership Center, owned and operated by Debt Relief Counseling Service (DRCS), provides services such as credit repair, credit counseling, mortgage assistance and counseling, and home ownership and maintenance counseling. The Center is jointly funded by the Housing Enterprise of Central Alabama (HECA), and the City of Birmingham through its Community Development Block Grant (CDBG) funds.

AUGUST

• HECA welcomed more than 200 people to its celebration honoring Aletheia House and its $5.5 million Avondale Gardens affordable housing development. The development won a national Fannie Mae Foundation Maxwell Award of Excellence in Affordable Housing for 2004. HECA is providing permanent financing for the development in the amount of $1.2 million.

During the program, Avondale Gardens resident Bernadette McNair talked about the difference that living in safe, decent housing has made in her life. A former crack addict, Ms. McNair lived in cars and abandoned houses before entering the Aletheia House rehabilitation program and, ultimately, finding an apartment at Avondale Gardens.

Also, the Housing Fund of Central Alabama provided a $7,500 grant for Aletheia House to pay a summer intern to write a business plan to create a separate non-profit to do more affordable housing in the area.

• HECA hired Birmingham-based Censeo to handle loan underwriting. They will work with staff and HECA’s loan and investment committee to underwrite and present funding requests.

SEPTEMBER

• The HECA staff and executive and loan and investment committees held a retreat in September to refine HECA’s mission, define a set of loan products and set realistic housing construction and rehabilitation goals. Censeo, a Birmingham-based consulting firm hired to do loan underwriting, facilitated the discussion and worked closely with Michele Jenkins-Utomi to devise the recommendations.

The strategic business plan for HECA and the non-profit Housing Fund of Central Alabama included the following mission statement:

“Jointly, (HECA and the Fund will) generate the production of affordable housing units in their 12-county service area by providing gap financing and/or more aggressive construction/acquisition loans or investments to qualified projects.
Be a catalyst for neighborhood revitalization and the creation of housing opportunities in areas not typically accessible to families of moderate means.”

In terms of project financing, the plan calls for the LLC and the Fund to begin to jointly provide financing for projects to achieve financial feasibility.

HECA unveiled two financing products: one for ownership projects, and one for rental projects.

• The Housing Fund of Central Alabama announced its $55,000 matching grant to Westside CDC at a press conference in Tuscaloosa Sept. 20. Tuscaloosa Mayor Al DuPont announced at the media event that the City would provide $55,000 in HOME money to Westside CDC.
The Fund also provided technical assistance to Louis Barnett Jr., acting executive director of Westside CDC, to enable the organization to host the press conference. The Fund grant is for core operating expenses.

OCTOBER

• The Birmingham Homeownership Center held its grand opening at its office in Avondale. The Center, located at 4117 Second Ave. S., opened as a one-stop shop for anyone seeking information about buying a home in Birmingham. Dawn Drew is the executive director. The City of Birmingham named Michele Jenkins-Utomi its board representative.

• Michele Jenkins-Utomi was among the speakers at the Alliance for Regional Stewardship National Forum on Regional Stewardship in Salt Lake City, Utah. Her panel topic: “Great Places to Live; Creating Livable Communities” Former Region 2020 Executive Director Ann Florie also attended. In May, The Alliance recognized Region 2020, the Regional Planning Commission of Greater Birmingham and the Birmingham Regional Chamber of Commerce for their efforts in forming the Regional Growth Alliance and other regional collaborations such as the Housing Enterprise of Central Alabama that have helped to move the region forward.

• New South Federal, Collateral Mortgage agreed to provide loan servicing. HECA reached an agreement with one of its investor banks --New South Federal Savings Bank -- to provide a single-family residential construction loan servicing platform. Services will include administration of HECA-owned loans; reporting to HECA; and default servicing.

• Collateral Mortgage Capital LLC, a New South Federal affiliate, will provide the servicing platform for longer-term commercial rehabilitation loans.

2005

DECEMBER 2004/JANUARY

• HECA selected a Birmingham-based website designer, Kinetic Communications. Completion is expected in the second quarter of 2005.

• Loan and Investment Committee approved loan for Sequoyah Ridge subdivision planned for unincorporated St. Clair County. The Committee gave the go-ahead for a loan to longtime developer Curtis White Companies to build a subdivision in the Moody/Prescott area.

Initially, the developer plans to build six homes in the $130,000-$140,000 price range on the 123-acre site. First phase of the project, to be called Sequoyah Ridge, will eventually involve the development of 33 homes on 37 acres. Average lot size will be one acre. The construction loan amount is $675,000 for 18 months. Curtis White Companies has been in residential construction for 50 years. Joe White, the past president of the Greater Birmingham Association of Home Builders, will lead the project.

MARCH

• HECA, Jefferson County partnered to build housing for seniors. The Housing Enterprise of Central Alabama is partnering with Jefferson County Community Development officials and others to help fulfill the need for more affordable housing for seniors in Lipscomb.

The partners hosted a ground breaking March 2 for Oak Park Villas, a $3.66 million 40-unit rental complex for low-income seniors and seniors with special needs. The event was held at the old Lipscomb Park, located adjacent to the building site. Oak Park Villas will serve seniors ages 55+ whose incomes are at or below 60 percent of the HUD Area Median Income. Rents will be in the $325-$375 range. Completion is expected in Spring 2006.

HECA is providing a $1.1 million construction loan and nearly $400,000 in permanent financing for the development. Jefferson County is providing approximately $2 million in HOME funds. Funding partners include: Alabama Housing Finance Authority (administering $1.1 million in Low-Income Housing Tax Credits); Compass Bank (land acquisition financing); and the U.S. Department of Housing and Urban Development.

The sponsor and developer is Community Action Agency of Northeast Alabama, Inc., of Rainsville. The non-profit agency is an affordable housing developer with more than 35 years experience fighting poverty. Co-developer is Vantage Development, based in Fyffe.

MAY

• Non-profit developer targets Norwood neighborhood with help from HECA and the Fund. HECA’s Loan and Investment Committee approved a $500,000 revolving line of credit to Aletheia House to acquire and rehabilitate housing in the Norwood Neighborhood in Birmingham. The first phase will involve buying and rehabilitating eight single-family homes.

Aletheia House also was awarded a $40,000 grant from the Housing Fund of Central Alabama to assist with the project. The loan builds on work HECA has already funded; Aletheia House used a grant from the Fund to write the business plan for Aletheia House’s real estate operation

JUNE

• ProVision loan approved to build affordable homes. HECA will provide construction financing for ProVision, LLC owner Robert Lampkin to build two homes in the Overbrook Estates subdivision in Pinson. The three-bedroom, two-bath homes will sell in the low to mid $160,000s. Construction should be completed in fall 2005. The loan amount is $250,000.

• HECA debuted its website, www.housingenterprise.com for both HECA and the Fund. The site includes a user-friendly section for developers.

JULY

• HECA reached $5 million milestone. HECA has more than $5 million in committed/closed loans for the following projects in Jefferson and St. Clair Counties: Aletheia House, $500,000, Norwood neighborhood, Birmingham; Avondale Gardens, $1.2 million, Birmingham; H&H Unlimited, $2.2 million (Phase I), Brighton; Oak Park Villas, $2.6 million, Lipscomb; ProVision, $250,000, Pinson; Sequoyah Ridge, $675,000, Moody-Prescott.

SEPTEMBER

• HECA introduced a third loan product to be marketed statewide. HECA announced a new subordinated debt product at a meeting in Birmingham. The new product is designed to make 4% bond deals more feasible, and is structured as a mezzanine piece of debt paid from cash flow. HECA is seeking qualified developers statewide to partner with them in implementing this product.

OCTOBER

• The Housing Fund of Central Alabama selected participants for its first-ever incubator for non-profit affordable housing developers. Participants include: Aletheia House, Mr. Chris Retan, Birmingham; Outreach Inc., Mr. Frank Dominick, Birmingham; West Anniston CDC, Mr. Jonathan Dow, Anniston; Westside CDC, Mr. Louis Barnett, Tuscaloosa; Alabama CDC, Ms. Samika Peterson, Birmingham.

More than 30 courses in areas such as governance, agency management, resource development and housing development will be offered, said Grants Officer Lois Chenier, who will oversee the project. The Fund is partnering with Local Initiatives Support Corporation and the Nonprofit Resource Center of Alabama on the project. Both the Capacity Building Advisory Committee and the HECA Board approved the budget and curriculum for the program. Cost for the incubator over two years is nearly $250,000.

NOVEMBER

• Housing Fund of Central Alabama begins its Incubator program for non-profit affordable housing developers. The incubator “without walls” will hold sessions at Compass Bank in downtown Birmingham.

• State Farm Insurance® awarded a $15,000 charitable gift to the Housing Fund of Central Alabama’s Incubator program. Monies will be used to cover program costs.

DECEMBER

• The Housing Fund of Central Alabama held a reception honoring participants in the Non-Profit Incubator. More than 50 stakeholders attended the reception at Compass Bank in Birmingham.

• The Housing Enterprise of Central Alabama closed its first Affordable Housing Subordinated Mortgage Loan in December for Shelby Hall Apartments, Ltd. I.

HECA’s mezz financing of $1,125,000 is part of a $10.5 million refinancing of the 200-unit Hunter Ridge apartment complex in Irondale. Hall Housing Investments, of Dothan, developed the property using the 4% tax credit/bond program of the Alabama Housing Finance Authority. Gary Hall is the principal of Hall Housing, and is an experienced developer and manger of tax credit and affordable properties in Alabama and Georgia. The closing represents the first deal to use HECA’s new mezzanine product, which was designed specifically for use in 4% bond deals.

2006

JANUARY

• The Wachovia Foundation awarded the Housing Fund of Central Alabama a $25,000 grant for operation of its new Non-Profit Incubator.

“At Wachovia we believe everyone deserves a safe, stable and affordable place to live,” said Ronald DeVane, CEO for Wachovia’s Mid-South region. “By building capacity in our local non-profit sector, more individuals and families in Central Alabama will be able to afford a home of their own. All of us at Wachovia are pleased to partner with the Housing Fund of Central Alabama in this important work.” The Wachovia Foundation provides grants to eligible 501(c)(3) tax-exempt organizations to support four primary focus areas; Education, Community Development, Health and Human Services and Arts and Culture.

• The City of Birmingham reappointed CEO Michele Jenkins-Utomi to the Board of the Birmingham Center for Affordable Housing, which operates The Birmingham Homeownership Center. Her term will end in 2007.

• Non-Profit Incubator classes focused on Business Plan Development this month and in February. Local Initiative Support Corporation (LISC) is overseeing the business plan development coursework. Bob Santucci, of Beaufort, N.C., is the class facilitator.

FEBRUARY

• The Housing Fund of Central Alabama awarded a $25,000 to the Jefferson County Committee for Economic Opportunity (JCCEO). Grants Officer Lois Chenier said the monies will be used for a portion of the salaries for the Program Coordinator and the Homeownership Education Specialist. Terms of the one-year grant include a 20% increase in both the number of clients who have completed homeownership workshops and become homeowners, and the number of clients who are current in both the Delinquent Renter and Default Mortgage workshops.

Since 2003, the Fund has distributed $398,500.

• The 40-unit Oak Park Villas complex in Lipscomb held its grand opening. The complex serves seniors 55+ with low to moderate incomes. The Housing Enterprise of Central Alabama provided conventional construction and first mortgage financing, which was leveraged by Jefferson County HOME funds. Co-Developers are Community Action Agency of Northeast Alabama and Vantage Development, based in Fyffe.

The Mayor of Lipscomb, Simon Speights, is among the tenants. “It’s just like living in Hollywood,” Mayor Speights said at the grand opening Feb. 15. “Lipscomb’s a great place to live, and it’s going to be greater.”

MARCH

• First American Bank announced it will become the first new institutional investor in HECA and the Fund. The investment increases HECA’s lending capability to $54 million. First American’s Robert B. Aland, President, Birmingham Region, made a presentation about HECA to his Board in December. LeDon Jones, Assistant Vice President, Community Development Officer, also was instrumental in the bank becoming a partner.

“We look forward to working with HECA and the other investors involved in the partnership,” Mr. Aland said. “And we hope to make a significant impact on the availability and quality of affordable housing in the counties we serve here at First American Bank.” First American Bank has $2.7 billion in assets, and provides a broad range of innovative banking products and convenient services. It was formerly the National Bank of Commerce of Birmingham.

• The Alabama Power Foundation has awarded the Housing Fund of Central Alabama a $25,000 grant toward operation of its first-ever Non-Profit Incubator.

The Incubator began classes and diagnostics in November to non-profits in the Fund’s 12-county region that applied and were selected for the two-year program.

“We thank the Alabama Power Foundation for its generous support of this program,” said Michele Jenkins-Utomi, Chief Executive Officer of the Housing Enterprise of Central Alabama. “We know that the Foundation is committed to making Alabama a better place to live for all of us, and that certainly describes the work of these incubator participants. They’re working everyday to transform their communities.”

• Participants in the Housing Fund of Central Alabama’s Incubator project will build or rehab more than 1,000 much-needed homes and apartments in the region over the next five years. That total is from figures presented by the four area non-profits in their five-year business plans and construction projections at a program held at Compass Bank in Birmingham.

The four incubator participants include: Birmingham-based Cornerstone Housing, a new division of Aletheia House run by Housing Director Mary Elizabeth May; Outreach Incorporated, led by co-founder and Executive Director Frank Dominick; Westside Community Development Corporation in Tuscaloosa, under the leadership of Louis Barnett; and West Anniston Community Development Corporation in Anniston, led by Jonathan Dow.

Ms. May said she appreciates that the incubator is providing an opportunity to work with nationally recognized housing experts who are facilitating the growth of critical development skills and strategies. “Having this five-year business plan has increased our credibility in the development community, and is already opening doors for funding opportunities,” she said. “The incubator program is providing the instruction that will help us to increase housing production and operate more efficiently. Ultimately, that means that we will be able to serve more families, and increase our impact in these neighborhoods."

• Fountain Heights will get 25 new single-family homes built with $2.5 million in HECA financing. The homes are a part of Phase I of Tuxedo Ridge, a $20 million HUD Hope VI project that also involves building multifamily housing in Ensley. Joe White, of Curtis White Companies, is the developer for the Housing Authority of the Birmingham District (HABD) project. Current public housing residents will have preference in purchasing the homes, which are geared toward families making less than 80% of Area Median Income (AMI).
The Loan and Investment Committee approved the loan March 15.

APRIL

• Non-Profit Incubator participants attended classes on “Building a Successful Acquisition and Rehab for Homeownership Program.” Local Initiative Support Corporation (LISC) is overseeing the coursework. Jack Jensen, of New York, is the class facilitator. The program trained participants in program design of acquisition and rehab for-sale operations, and focused on five success factors: supporting buyers; affordable product; great financing; the "right" assistance and excellent management. The incubator opened this class to another Birmingham non-profit, JCCEO.

Also in April, the incubator hosted Board Members of participating non-profits for a summit that focused on “Introduction to Real Estate Development.” The Nonprofit Resource Center of Alabama conducted the classes, which were held in Birmingham, Anniston, and Tuscaloosa. The end result was for members to have a clearer picture of their oversight role in the real estate development process.

MAY: • The BancorpSouth Foundation donated $10,000 to the Housing Fund of Central Alabama. BancorpSouth Birmingham President David Wright said the monies are to further the mission of the Fund. “Supporting the mission of the Housing Fund of Central Alabama goes hand in hand with BancorpSouth’s corporate commitment to meeting the needs of the communities we serve,” Mr. Wright said. BancorpSouth is an $11.8 billion-asset bank holding company based in Tupelo, Miss.