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Vectra Bank funds help with affordable housing

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Monday, March 14, 2011 8:40 PM

Vectra Bank Colorado has been awarded a $144,000 Affordable Housing grant to help build a new development for low- to moderate-income families in Cortez.

FHLBank, a wholesale financial institution of which Vectra Bank Colorado is a member, awarded the grant through its Affordable Housing Program, according to a statement from Vectra Bank. Through the use of subsidized advances and direct subsidies, the AHP helps FHLBank members provide long-term financing for owner-occupied and rental housing that is affordable to very low-, low- and moderate-income households. Each year, FHLBank allocates 10 percent of its net earnings to award in AHP subsidies the following year. FHLBank Topeka awarded nearly $28 million in AHP grants in 2010.

The Brubaker Place Apartment project in Cortez will provide modern, quality housing for the community. The city of Cortez has a shortage of multifamily housing, and the Housing Authority of the County of Montezuma has an affordable housing waiting list of more than 175 qualified low-income applicants. Vectra Bank Colorado hopes to help address this community need. The Brubaker Place Apartments are the bank’s ninth AHP project.

FHLBank Topeka is one of 12 wholesale banks nationwide that provide liquidity and various programs that help community financial institutions meet the residential housing finance and economic development needs of their communities. The AHP, which celebrated its 20th anniversary in 2010, awarded $169 million in grants to help fund 935 housing projects for 40,000 households in FHLBank Topeka’s district of Colorado, Kansas, Nebraska and Oklahoma. In addition, more than 6,000 households have realized their dream of homeownership with nearly $28 million of down payment and closing cost assistance provided through FHLBank’s Homeownership Set-aside Programs. FHLBank Topeka serves nearly 840 financial institution members in its district. The award from FHLBank Topeka will help build 48 housing units.

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