STARKVILLE, Miss., Feb. 23, 2012 (GLOBE NEWSWIRE) -- Starkville Area Habitat for Humanity (Starkville Habitat) was awarded a $25,000 Affordable Housing Program (AHP) grant through BancorpSouth Bank and the Federal Home Loan Bank of Dallas (FHLB Dallas) to provide down payment and closing cost assistance to five Habitat families.
Each of the five families will receive $5,000 in AHP funds for the upfront payment on their newly constructed home. Starkville Habitat Executive Director Freddie Rasberry said the extra funding will enable these families to lower their monthly payment, which will save them about eight percent on a 20-year mortgage.
"The AHP funding provided by FHLB Dallas and BancorpSouth is essential in putting our recipient families into safe, affordable homes," said Mr. Rasberry. "The Starkville area poverty level is around 35 to 40 percent, and many of our families live in incredibly substandard conditions before coming to Habitat. We strongly believe that a safe home is the beginning of a secure life, and we strive to provide that for all of our families. In the end, our families usually end up paying far less on a Habitat mortgage than they would in rent, which helps to make homeownership that much better."
Starkville Habitat has been in operation since 1987 and has built 48 homes for local families. On average, the organization completes two to three homes each year. Of the five homes utilizing AHP funds, two homes have been completed. Starkville Habitat plans to build a third home in the fall of 2012, and the two remaining homes will be built in 2013.
Mr. Rasberry credits much of Starkville Habitat's success with its close partnerships with community and government organizations, as well as with local lender BancorpSouth. BancorpSouth has funded previous AHP grants through FHLB Dallas that have assisted other Starkville Habitat families.
"As a community lender, we at BancorpSouth are proud to be a partner in Habitat's efforts to make Starkville a better place to live and work," said BancorpSouth-Starkville President Buddy Staggers.
Each year, FHLB Dallas returns 10 percent of its profits in the form of AHP grants issued by its member financial institutions, such as BancorpSouth, to assist in the development of affordable owner-occupied and rental housing for very low- to moderate-income households.
In 2011, FHLB Dallas awarded $11 million in AHP grants through its member institutions to 53 housing projects, which will help create or renovate 1,653 housing units across FHLB Dallas's five-state District of Arkansas, Louisiana, Mississippi, New Mexico, and Texas. Of the $11 million awarded, more than $3 million was allocated to projects in Mississippi which will create or renovate 378 housing units within the state.
About the Federal Home Loan Bank of Dallas
The Federal Home Loan Bank of Dallas is one of 12 district banks in the FHLBank System created by Congress in 1932. FHLB Dallas, with total assets of $33.8 billion as of December 31, 2011, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to more than 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico, and Texas. For more information, visit the FHLB Dallas web site at fhlb.com.
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