CommunityWorks - Recent News

July 9, 2008

Right At Home

By Susanne Nadeau

Grand Forks Herald

NORTHWOOD, N.D. — Dale and Audrey Braaten’s home was destroyed by last August’s deadly tornado. The storm lifted the house off its foundation, creating cracks in the home’s walls and making it structurally unsound, Dale Braaten said. Ultimately, water puddled in the basement, and mold covered everything. The Braatens said their home at 309 Third Ave. was unlivable. So, the couple, with three of their children, moved in with their adult son in nearby Hatton, N.D. But while the family longed to quickly get back into a home of their own in Northwood, they struggled to find suitable financing. “I was ready for a nervous breakdown,” Audrey Braaten said. Her anxiety — and that unlivable house — were nowhere in sight Tuesday. The damaged house has been replaced by a new modular house that’s been occupied by the Braatens since before Christmas. “We’re in the same spot, with the same neighbors,” Audrey said. “It just wasn’t the same in another town.” Thanks to a DREAM Fund loan program, 24 people will continue to call this town home, according to Mike Anderson of the North Dakota Housing Finance Agency. The families represent about $650,000 in new community investment, Anderson said.

Hurdles jumped

Anderson joined Sen. Kent Conrad, D-ND, Northwood city leaders and other officials from participating non-profit agencies outside the Braaten home Tuesday to ceremoniously dedicate the new or rehabilitated homes and present American flags to four Northwood families and one individual. Adam Flaagan said Northwood is “a good place to call home.” Flaagan, 25, was living in an apartment complex destroyed by the Aug. 26 tornado. He has been living in Hatton. On Tuesday, he signed off on a loan for his first home, an existing Northwood dwelling that survived the devastating storm. “I probably would not have gotten my home, but for (the program),” said Flaagan, a volunteer firefighter who also works in Northwood. “They went through a lot of hurdles to get this for me.” Flaagan just signed off on the home loan Tuesday, he said, so he hasn’t moved into his home yet. But he’s ready to move back. “I’m really excited,” he said.

CommunityWorks

According to the Braatens, finding a suitable loan to get back on their feet was a nightmare. They found a modular house, but the original loan they sought would have provided money in installments, rather than upfront. The latter was necessary, they said, to move their new house onto their old home’s foundation. “We had the house, and we had no money,” Audrey Braaten recalled. “I tell you, I was ready to collapse.” That’s when she checked to see whether her family would qualify for the DREAM Fund home loan program offered by CommunityWorks North Dakota. The nonprofit organization’s mission is to help revitalize communities by providing needy state residents with affordable housing and development opportunities. CommunityWorks was recruited by the state Housing Finance Agency to help provide lending assistance for Northwood’s recovery. The DREAM Fund helps individuals and families with down payment and closing cost aid, rehabilitation and emergency repair assistance, mortgage assistance and help with other financing, such as construction bridge loans.

CommunityWorks gained extra lending muscle with help from Conrad, who secured financial commitments from two national nonprofit organizations — Enterprise Community Partners and NeighborWorks — to make the loans readily available to qualified applicants. The program worked wonders in Northwood, according to the people who used it. “They were right there for us,” Audrey Braaten said. And now, the Braatens, with a new home and two added foster children, are back on Northwood’s Third Avenue — right where they want to be.

September 25, 2007

HOUSING LOAN FUND FULFILLS RURAL DREAMS

By JILL SCHRAMM

Staff Writer

Minot Daily News

Many people were skeptical when North Dakota CommunityWorks launched its DREAM Fund in 2001 to bridge the gaps in North Dakota's housing finance system. A growing loan portfolio expected to add nearly $4 million in new business this year is erasing that skepticism, said executive director Paul Rechlin of Bismarck. "It's been a struggle, but I think we have been successful," said Rechlin, who spoke Monday to county officials from northwest North Dakota at an Elmer Jesme Conference of Counties meeting in Minot.

The DREAM Fund began in August 2001 as a way to address housing needs in rural communities. Since that time, the fund has loaned about $12.3 million to 437 households. It has leveraged another $24.8 million for single-family home purchases and repairs. CommunityWorks, which assists in single- and multi-family projects, has had a $48.6 million impact on the overall housing market since 2001. Thirty counties, including Ward, participate in the DREAM Fund. Nine other counties have limited access to the fund. Borrowers obtain access to the DREAM Fund through banks if local participation is present. Participation requirements call for a half a mill in property tax for three years from the county, $1 for each meter served from rural electric utilities and $100 per $1 million in assets from banks.

The goal of the program is to spur home construction in communities where financing is difficult. Borrowers can be of any income level. "The problem isn't that they can't afford a loan. The problem is they can't get a loan. They usually aren't low income. Their credit may be excellent," Rechlin said. The problem is that houses cost more to build in rural areas than they are worth on the market. That makes the houses unattractive to companies that buy mortgages from banks, he said. To address that problem, the DREAM Fund provides a secondary mortgage to cover the difference between a home's value and the construction cost. "We are unusual in that as a second mortgage lender, we will never charge more than the bank charges on its first mortgage," Rechlin said. When banks help select reliable borrowers, it becomes reasonable to set rates based on affordability rather than risk, he said. Over the years, the fund has written off only about $30,000 as bad debt. "North Dakotans will pay back if given the opportunity," Rechlin said. "We structure our loans so they are affordable to borrowers."

The DREAM Fund also acts as first mortgage lender and has been able to attain working capital by selling mortgages to other entities. The North Dakota Housing Finance Agency recently agreed to buy up to $1 million of DREAM Fund loans. The DREAM Fund provides loans for down payment and closing costs, rehabilitation and repairs, emergency repairs, construction costs and for income and appraisal gaps.

In Ward County through August 2007, the DREAM Fund has given 22 loans totaling $409,860. Leveraged funds added nearly $1.2 million. Eighteen of the loans were used in Minot, while two families in Sawyer and one each in Kenmare and Surrey benefited. The figures include a $100,000 multi-family rehabilitation loan in Minot. The program is seeing an increased need for loans and for larger loans, Rechlin said. As the value of housing has gone up, the average loan has risen from about $10,000 to $15,000 or $20,000. But, the program made a pledge not to turn away any qualified buyer because of lack of fund resources, Rechlin said. "There's been times we have been challenged. It's been tough. It's been tight," he said. "We have been very fortunate. We have had good support."

March 7, 2007

NORTH DAKOTA HOUSING AGENCY RECOGNIZES AFFORDABLE HOUSING CHAMPIONS

BISMARCK – The North Dakota Housing Finance Agency (NDHFA) recognized six of their housing partners as Champions of Affordable Housing at the 2007 Statewide Housing Conference.

“Without the assistance of these partnering organizations, the staff at NDHFA would not be able to provide affordable home loans, ensure the availability of affordable rental units or offer a hand to community leaders struggling to meet the housing needs of their local population,” said Agriculture Commissioner Roger Johnson, who presented the awards on behalf of the Industrial Commission.

Receiving Lender Awards:

Bremer Bank, part of the Bremer Financial Services Company; and
CommunityWorks North Dakota, a nonprofit organization based in Bismarck; and
Dakota Community Bank, serves nine communities in central and southwest North Dakota; and
First Community Credit Union, 13 locations across North Dakota.

Lender awards are based on participation in the Agency’s homeownership programs and involvement in locally sponsored affordable housing projects and events.

Affordable Housing Developers, Inc., a multi-regional Community Housing Development Organization based in Bismarck, received the Housing Production Award. Projects completed by the nonprofit developer in 2006 included six single-family units at Trail West, a 10.2 acre subdivision in Mandan; construction of 24 rental units in Dickinson; the acquisition and rehabilitation of 20 rental units in Rugby; and provision of a low-interest loan to help Berthold Housing Corp acquire, move and rehabilitate four rental units.

Lynn Fundingsland of Fargo, ND, was recognized with a Leadership Award for his dedication to providing affordable housing opportunities and creating awareness of housing issues in his community. Fundingsland heads the Fargo Housing and Redevelopment Authority and non-profit developer Beyond Shelter, Inc.

“Lynn’s advocacy is at the forefront of his activities everyday, and when faced with challenging housing projects or fear of opposition, you will often hear him say ‘if we don’t do this, who will?’” said Johnson.

NDHFA began recognizing Champions of Affordable Housing in 1995. The awards to real estate agents are presented during their annual conference in September.

For more information on the awards or other NDHFA programs, contact the Agency at (701) 328-8080, (800) 292-8621, (800) 366-6888 (TTY) or www.ndhfa.org.

The Industrial Commission of North Dakota, consisting of Governor John Hoeven, who serves as chairman, Agriculture Commissioner Roger Johnson and Attorney General Wayne Stenehjem, oversees the NDHFA.

January 12, 2007

Fargo, N.D. Bank of the West is investing $250,000 in the CommunityWorks North Dakota (CWND) DREAM Fund, the bank announced today. The bank's investment will provide assistance to North Dakotans to purchase, repair, and build housing through Bank of the West branches in Fargo, Cooperstown, Dickinson, Beach, Lidgerwood and Wahpeton.

Brad Rasmus, Executive Vice President and Midwest Division Executive for Bank of the West, said the bank is "proud to help North Dakotans achieve their dream of homeownership and improve their quality of life. We are committed to the communities we serve and are looking forward to filling the gaps that occur in residential financing, including appraisal gaps, downpayment and closing costs, and other mortgage financing for purchase or rehabilitation."

Bank of the West operates four branches in Fargo, and one branch in each of the communities of Cooperstown, Dickinson, Beach, Lidgerwood and Wahpeton.

Bank of the West mortgage loan originators have attended training sessions sponsored by CWND in order to maximize opportunities for North Dakotans who qualify for funding.

"The DREAM Fund provides financing that traditional lending programs cannot provide, and it is not limited to low income borrowers," said Paul Rechlin, Director, CWND.

The DREAM Fund has provided 423 loans and more than $9.7 million in financing since it began lending in August 2001. It has helped to contribute to more than $31.1 million in residential financing across the state, making possible $9.8 million in construction.

"Bank of the West's generous gift will help enable us to continue to improve the standard of living and quality of life for North Dakotans," said Rechlin.

About Bank of the West’s Community Support: Bank of the West is committed to supporting nonprofit organizations to help improve the social and economic health of the areas it serves. As a result of Bank of the West's growth into new states and markets in 2005, the bank expanded its community support plan to provide $75 billion in loans, investments, contributions and services to lower income individuals and small businesses, companies in lower-income areas and community-based organizations throughout the bank's markets. The expanded goal extends through 2015.

January 2007

TO HELP LOW-INCOME HOME BUYERS IN FARGO

FARGO, N.D., Jan. 2007 – The Wells Fargo Housing Foundation (WFHF) today announced its 2006 Focus Communities challenge grant resulted in a total of $277,292 in contributions that will help more than 20 low- and moderate-income Fargo families achieve the dream of home ownership.

From June through November 2006, WFHF contributed $1 for every dollar raised by CommunityWorks North Dakota — up to $50,000 — for its DREAM fund home ownership assistance program. During the Focus Communities campaign, CommunityWorks raised $227,292 in contributions.

“A contribution to help more Fargo families become homeowners is one of the best gifts we can make,” said Jeff Thomas, Community Banking president for Wells Fargo in Fargo, Moorhead and West Fargo. “Successful communities have high levels of home ownership. Through Focus Communities, we are helping CommunityWorks begin its efforts in Fargo to increase home ownership opportunities for low- and moderate-income families, and strengthen our communities.”

CommunityWorks is using Focus Communities contributions to launch its DREAM fund in Fargo — helping low- and moderate-income families purchase or repair their homes, through down payment and closing cost assistance and home improvement assistance programs. Started in Bismarck, the DREAM fund is now available in 29 North Dakota counties and on a limited basis in 9 additional counties.

Focus Communities challenge grant

The Focus Communities challenge grant is designed to increase homeownership opportunities for low- and moderate-income families in communities where less than 5 percent of the available housing is “affordable” — defined as housing where a low- to moderate-income family is not spending more than 30 percent of its gross monthly income on housing expenses. The program helps community non-profit organizations broaden their base of financial support from businesses and organizations and reduce their dependency on the decreasing pool of government funds.

Wells Fargo Housing Foundation

The Wells Fargo Housing Foundation, funded by Wells Fargo Home Mortgage, was created to provide permanent solutions to homeownership needs in Wells Fargo communities nationwide. Wells Fargo volunteers have built or renovated more than 2,000 homes since the foundation’s inception in 1993. The Focus Communities initiative is one of many programs that demonstrate Wells Fargo Home Mortgage’s commitment to provide financial services to all communities.

Wells Fargo

Wells Fargo has 92 stores in North Dakota, South Dakota and western Minnesota and employs more than 4,400 team members throughout the region. Wells Fargo & Company is a diversified financial services company with $483 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,100 stores and the internet (wellsfargo.com) across North America and internationally. Wells Fargo Bank, N.A. has the highest possible credit rating, "Aaa," from Moody's Investors Service and the highest credit rating given to a U.S. bank, "AA+," from Standard & Poor's Ratings Services.

Wells Fargo Home Mortgage

Wells Fargo Home Mortgage is the nation's No. 1 retail mortgage lender and a leading servicer of home morgages.* As a division of Wells Fargo Bank, N.A., it has a local presence in more than 2,400 mortgage stores and bank branches, plus the capabilities to serve the home financing needs of customers nationwide through its call centers, Internet presence and wholsale lending operations. Wells Fargo Home Mortgage services loans for 7.5 million servicing customers.

*Based on year-end 2005 statistics compiled by Inside Mortgage Finance - Feb. 17, 2006

The DREAM Fund was awarded the Champion of Affordable Housing Award in the Lending Category by the North Dakota Housing Finance Agency. The Fund had a record year in 2005. The Fund, which assisted its 250^th household in December, set several new annual records for lending including number of households served (110), number of loans made (139), and for the amount of financing ($3,603,196). When tallied with the financing made by partnering lenders, ND Housing Finance Agency, and other sources, the DREAM Fund was part of $9.2 million in residential development, including over $2.5 million in new construction.

The Wells Fargo Housing Foundation awarded CommunityWorks with a $10,000 grant to expand and enhance its homebuyer education efforts.

December 2005

In December, Dacotah Bank presented CommunityWorks with a $100,000 contribution for the DREAM Fund, the award-winning program that has helped lenders to provide their clients with more affordable opportunities to purchase, build, or repair their homes.

The contribution allows Dacotah Bank’s branches to access the Fund within the program’s service area as well as specialized technical assistance for their lenders to better serve their clients. Dacotah Bank in Hettinger has been an active partner of CommunityWorks since 2002, which has enabled it to better help its clients in Adams and Bowman counties to purchase and rehabilitate their homes.

Thank you to Dacotah Bank for your generous contribution and your commitment to affordable housing!

Pictured to the right are (back row, l-r) Joe Senger, V.P. Credit Administration; Dan Vollmer, Rolla Regional President; Dave Johnsen, Valley City Regional President; G.W. Melgaard, Minot Regional President.

(front row, l-r) Diana Pfister, Compliance & Security Officer; Stephanie Honeyman, Mortgage Loan Officer for Hettinger and CWND Board member; and CWND Housing Program Director Sherri Arenz.

August 2005

US Bank contributed $250,000 to the DREAM Fund, which will allow it to help households overcome the obstacles to affordable homeownership. Tim Hennessy, Western North Dakota Regional President for US Bank, presented the check to CWND Executive Director Paul Rechlin.

"US Bank is pleased to continue our support of CommunityWorks North Dakota's efforts in the state to provide affordable housing finance options for our citizens," Hennessy said, "Their growth has been a testament to the critical need in our communities all across North Dakota for creative solutions for home buyers and owners."

Thank you to US Bank for helping us provide affordable opportunities for home ownership in North Dakota!

Library Square was awarded the Champion of Affordable Housing Award in the Production Category by the North Dakota Housing Finance Agency. The award was presented at the 2005 North Dakota State Housing Conference.

CommunityWorks was accepted into the NeighborWorks Campaign for Home Ownership, an alliance of over 150 organizations that promotes home ownership for low- and moderate-income households.

CommunityWorks received a $500,000 contribution from Wells Fargo in Minot, which will help provide additional home ownership opportunities for North Dakotans. The award will be used three ways: $200,000 will be contributed to the DREAM Fund for lending, $200,000 will be set aside to create residential financing opportunities for Native Americans living on reservation lands and for families with disabled members, and $100,000 will be loaned to Neighborhood Development Enterprises to remodel and rehabilitate twelve low-income rental housing units in the Minot area.

"Wells Fargo and CommunityWorks share the same goals," said Wells Fargo-Minot Community Banking President Daryl Hodnefield, "We're both commited to furthering the dream of homeownership and, by working together, we can create safe, decent, affordable housing and help improve the quality of life for residents in our community."

Thank you to Wells Fargo!

Pictured to the right are John Giese, Wells Fargo Community Banking President for Bismarck, and CWND Executive Director Paul Rechlin.

CommunityWorks received a $22,950 technical assistance grant from the CDFI Fund, a program of the U.S. Treasury that helps create community and economic opportunities in distressed urban and rural communities. The award will be used to purchase new computer equipment, staff training, and to update the business plan.

Read the Press Release from the CDFI Fund (PDF)

CommunityWorks celebrated National NeighborWorks Week by helping residents of Library Square to plant flowers and celebrate June birthdays. NeighborWorks Week is a nationally-recognized week that promotes community involvement and neighborhood awareness.

CommunityWorks received certification as a Community Development Financial Institution (CDFI) from U.S. Treasury.

Executive Director Paul Rechlin was awarded the 2004 Champion of Affordable Housing Award for Leadership from the North Dakota Housing Finance Agency. The award honors the work of the individual who has made exceptional contributions towards the advocation of affordable housing in North Dakota.

On August 19th, Library Square was formally introduced to its surrounding community. The apartments, co-developed by CommunityWorks and MetroPlains Development, will offer affordable, quality housing opportunities to low-income elderly residents of the region. Library Square will become a cornerstone for the revitalization of downtown Mandan, which had been harshly affected by an underground diesel plume.

Executive Director Paul Rechlin accepts the Award of Excellence from Vincent Lintz of the Federal Home Loan Bank-Des Moines. The award was presented to CommunityWorks for its leadership in administering $700,000 in home rehabilitation assistance to low-income and elderly homeowners in rural communities. The rehabilitation effort helped 72 homes across the state.