DURHAM, N.C. – Self Help CU was awarded a $2.5 million grant yesterday under a new federal program that will help the community development credit union finance several initiatives aimed at alleviating the spreading foreclosure crisis in North Carolina.
The funds under the new federal Neighborhood Stabilization Program will provide loan loss reserves for two Self Help CU programs. Under one, the CDCU will lend to people at or below 120% of area median income to help them buy foreclosed properties. The other will provide low-cost loans to non-profit and for-profit affordable housing developers for the purchase and rehabilitation of foreclosed properties.
David Beck, a spokesman for Self Help, said yesterday the new funds will help the credit union expand a foreclosure program it has been piloting for the past year in Charlotte to as many as 23 counties around the state.
The grant was among 20 awarded yesterday to North Carolina government and non-government entities for a total of $48.9 million under the new program, which is administered by the U.S. Department of Housing and Urban Development. The program’s purpose is to assist those areas hit hardest by the housing crisis.
