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Housing Authority qualifies for Build America Bonds

STCU’s $4.9 million loan nets big savings for Spokane Housing Authority

[September 28, 2010]

A new relationship with STCU will save Spokane Housing Authority money that can be put back into the local economy, while also improving the lives of low-income residents in two apartment complexes where more than $900,000 in upgrades are planned.
 
By refinancing its Heritage Heights and Westfall Village apartments with a $4.9 million commercial loan through STCU, Spokane Housing Authority qualifies for the federal Build America Bonds program.
 
Authorized by Congress in 2009, Build America Bonds are meant to stimulate the economy by reducing the cost of borrowing. The program repays agencies 35 percent of their interest costs for qualifying loans. That has the potential to save Spokane Housing Authority hundreds of thousands of dollars over the life of the loan.
 
"This was a win-win-win opportunity," said Steve Cervantes, executive director of Spokane Housing Authority. "The agency is able to preserve these developments, the residents' homes are enhanced and the STCU financing serves as a local stimulus for an investment that will generate approximately 40 jobs."
 
"Not-for-profit credit unions exist to help members, and contribute to the good of the community," said Scott Adkins, STCU vice president of lending. "So this relationship with Spokane Housing Authority is a perfect match for us."
 
Refinancing gives SHA full control over improvements at the apartments. Under a limited partnership with the national bank that held the original loan, SHA was required to submit any plans to the bank for approval – a process that often took months and slowed critical projects. The arrangement put decision-making authority in the hands of bankers more than 800 miles from Spokane.
 
Among the improvements SHA plans as a result of the refinancing are a new roof and additional common space for gatherings at Heritage Heights; energy-efficient water heaters, refrigerators, washers and dryers; and security improvements.
 
"If you own a home, you want it to be an efficient, attractive and safe place to live," said Art Noll, SHA development director. "That is what the Spokane Housing Authority will be doing for residents at Heritage Heights and Westfall Village Apartments."
 
Located at 3818  N. Cook, Heritage Heights is a 62-unit complex offering affordable housing for low-income seniors. Westfall Village Apartments, 3724 N. Cook, has 110 affordable units for families. Spokane Housing Authority works with other agencies to provide job training and other needed services to residents of both complexes.
 
Formed in 1972, Spokane Housing Authority serves 5,300 households (approximately 10,000 people) in Spokane, Lincoln, Whitman, Stevens and Pend Oreille counties. It is a public body corporate and politic of the State of Washington, served by a six-member Board of Commissioners who represent the mayors of Spokane and Spokane Valley, Spokane County Commissioners, and a resident commissioner who receives rental assistance.