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Joint Collaboration Launches “Gateway Neighborhood Mortgage”
Drive to increase opportunities for home ownership
This article is 6 years old. It was published on May 7, 2019.
ST. LOUIS — After decades of discriminatory housing policies, the City of St. Louis, in collaboration with St. Louis Development Corporation a number of nonprofits, various banks and a community financial institution (CDFI) in launching the “.”Gateway Neighborhood Mortgage
The Gateway Neighborhood Mortgage will provide loans to qualified borrowers to purchase and improve homes ion neighborhoods with depressed home values. The loans allow up to $75,000 over the appraised value for the purchase and renovation of homes. Historically, African American neighborhoods have faced depressed home value and economic disinvestment which impedes re-development and prohibits families from building wealth through homeownership. Without access to mortgage lending for purchase or home improvements, homes in these neighborhoods become vacant and fall into disrepair, while families lose out on becoming homeowners in their own neighborhoods.
Otis Williams, Executive Director of St. Louis Development Corporation stated, “The appraisal gap is a significant barrier to providing equitable access to badly needed financial resources in neighborhoods that need them most. These funds are intended to close that gap.”
This fund, which is modeled after the Detroit Home Mortgage Initiative, would provide loans for qualified community residents to purchase and rehab homes above their appraised value and remove the barriers caused by the appraisal gap. Participating banks will offer the loan product, providing homebuyers with consistent terms and rates on qualified affordable mortgages. In addition, homebuyers will receive homebuyer counseling and a project manager will help oversee renovation of the homes.
Williams stated, “This fund will be big for the City of St. Louis. It will allow people to invest in themselves, their neighborhoods and their future.”
About the St. Louis Development Corporation (SLDC)
St. Louis Development Corporation (SLDC) is an umbrella, not-for-profit corporation organized under Chapter 355 of the Missouri State Statutes with the mission of fostering economic development and growth in the City of St. Louis by stimulating the market for private investment in City real estate and business development and improve the quality of life for everyone who lives in, works in, and visits the City. The mission of the SLDC is to stimulate the market for private investment in City real estate and business development and improve the quality of life for everyone who lives in, works in, and visits the City of St. Louis. If there are questions, please contact John Parker, Director of Corporate Communications and Media at 314-363-1102 or email him at parkerj@stlouis-mo.gov
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