Two NeighborWorks members made significant use of our bridge loan program during January’s government shutdown. For both, the shutdown jeopardized affordable self-help home construction projects funded through the USDA’s RHS Section 523/502 Program.
Mark Mancuso, Finance Director at Housing Resources of Western Colorado (HRWCO), had previously met our Chief Loan Officer Stephen Peelor, which helped when the shutdown affected 20 homes in their program. At first, HRWCO used their own funding, but could only cover a part of the gap.
“We didn’t want to prevent the process from moving forward. When we explained our need to NC, they worked with us to get a loan that would fit. The rate was great, an offer we couldn’t refuse. Steve was very helpful in moving things along expeditiously,” Mancuso said. “At the time, we used our own funding – which only goes so far. The loan from NC gave us the funding we needed to replenish our accounts and pay numerous other invoices. It was very needed and timely, and most appreciated. They were a great help.”
Jill Quezada, Vice President and Director of Homeownership at Community Housing Improvement Program (CHIP) in northern California, said the shutdown threatened to halt the construction of 80 homes in two developments. While they ended up not needing to spend all of the NC funding, it assured them during a time of great uncertainty.
“The government shutdown was very stressful. If it extended too long, we wouldn’t be able to continue our programs. It was very heartening to have this option available, and to work with Steve. He was very accessible and the process was simple, and they were able to disburse the money to us very quickly,” Quezada said.
Both organizations have already paid off their loans.
If another shutdown occurs, NC stands ready to help. Reach out to our Chief Lending Officer Stephen Peelor at speelor@neighborworkscapital.org or 240-595-1561 with questions.
