Affordable Homes of South Texas, Inc.
McAllen, Texas
Represented by Robert Calvillo, executive director
Description of Contribution to Increase Minority Homeownership
Since 1976, Affordable Homes of South Texas, Inc. has been making a difference in the lives of low-income, working families by providing an affordable, appreciable asset in the form of a home. AHSTI has assisted over 2,800 families with affordable homeownership opportunities. AHSTI serves as land developer, general contractor and full service mortgage company. AHSTI has created a difference by developing a model that addresses the major barriers to homeownership and providing affordable homes for the working low income families of South Texas. The majority of AHSTI’s clients are of Mexican descent.
To address the lack of down payment, closing costs and poor credit history, AHSTI has developed its “Nueva Esperanza” or New Hope and Helping Hands programs. Nueva Esperanza is an Individual Development Account program where participants save a monthly amount into their account. AHSTI matches this savings dollar for dollar so that families can apply funds toward their down payment. Helping Hands is a scaled program that assists qualified families with a one-time grant of $2,000, 3,000 or 5,000 that is applied toward their down payment costs.
To overcome the lack of access to credit, AHSTI created the Affordable Housing Mortgage Fund. Due to its flexible underwriting criteria, AHSTI is able to provide in-house long-term flexible financing at an affordable rate to families who would not qualify for conventional financing or who would be forced into subprime or predatory loans.
Lastly, AHSTI addresses the lack of understanding about the home buying process through bilingual homebuyer education classes in order to educate minority families to whom English is a second language.
Measurement
AHSTI has developed 8 subdivision and numerous scattered site new home construction throughout Hidalgo County. These include:
Innovation
AHSTI’s approach to affordable community development and homeownership is innovative in its approach because it maximizes funding to provide services to a greater number of qualified families while providing sustainability to the program. .AHSTI’s community development model is designed to meet customers’ needs. The model offers flexible underwriting guidelines and below-market financing while addressing the following challenges:
Whereas many cities and organizations have chosen to use HOME and CDBG funds for housing subsidies, AHSTI has chosen to utilize this investment for the creation of its mortgage fund. AHSTI’s approach to loaning resources at affordable interest rates has resulted in a source of operating revenue. More importantly this model insures that there will be a source of funding for future housing initiatives.
AHSTI’s approach to community development is replicable. AHSTI successfully mentored the Community Development Corporation of South Texas, for 6 years before the CDCST board of directors decided to merge with AHSTI in January of 2008 in order to reduce overhead expenditure. To date the merger has proven a success. In fiscal year 2008-2009 AHSTI completed 108 new and rehabilitated homes. AHSTI's home prices range from $465-$565.
Minority Acceptance
AHSTI has been active in the community since 1976. During this time AHSTI has developed relationships with several community groups. These groups work with AHSTI’s target population and provide a continued source for new clients. AHSTI maintains a waiting list that is mostly comprised of working low-income Hispanic clients. As a testament to the support it receives from the minority community, AHSTI has also received grant funding from the National Council of La Raza for development of affordable housing.
AHSTI has also received national recognition from NeighborWorks America and MetLife Foundation for the development of La Loteria Home Buyer Education and Foreclosure Prevention Program; a culturally relevant homebuyer education tool that helps prevent foreclosure and sustain homeownership for families.
AHSTI makes its program literature and applications available in both English and Spanish.
Furthermore, AHSTI‘s homebuyer counselor and loan officers are native Spanish speakers who provide assistance to non-English speaking clients throughout the home buying process. AHSTI also employs the use of an affidavit of translation when educating and guiding non English speaking clients through the home buying process to ensure program compliance and client comprehension.