CHARLESTON, S.C. – Heritage Trust FCU has contributed $100,000 to a new loan pool to help developers finance affordable housing projects.
The Lowcountry Housing Trust, which was created as a Community Development Financial Institution, was aided with a $600,000 grant from the Treasury Department’s CDFI program.
The trust is setting up a revolving loan pool from private and public dollars, which it hopes will reach $2 million by the fall. It’s asking other banks to follow Heritage Trust’s lead and invest in the loan pool for 10-year terms.
Institutions that invest will receive quarterly interest payments on their investments, earned from short-term loans made to developers of affordable housing projects. A spread on the interest rates will help fund the trust’s operations.
