Sacramento Bee

Sacramento, CA, Organization's Loan Program to Spur Housing

By Andrew LePage, The Sacramento Bee, Calif.
29 July 2003
The Sacramento Bee

Jul. 29--Sacramento-based Nehemiah Corp. will make short-term loans to community and faith-based organizations trying to build affordable housing or spur economic development in low-income areas.

Nehemiah, best-known for its national down payment assistance program, said it will tap $5.5 million of its own funds to make loans up to five years in duration, ranging from $10,000 to $750,000. The loans are meant to supplement other financing and are expected to average about $50,000.

The interest rate on the loans will vary from about 5 to 10 percent, depending on the type of project and associated risks, a Nehemiah spokesman said.

Nehemiah hopes that over three years it will lend about $13 million for community development projects as some of the early loans are repaid and that money is used for additional loans. Although the loan program is national, Nehemiah said it will focus initially on California's Central Valley and six out-of-state regions, including Reno and Las Vegas.

The new loan program is offered by the organization's Nehemiah Community Reinvestment Fund and is part of a national initiative titled "Moving People from Homelessness to Homeownership."

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