Three Nonprofits Receive Open
Doors Homeownership Grant
Since 2004, CAHEC has offered the Open Doors Homeownership Grant to assist nonprofit organizations who develop for-sale affordable housing within our footprint. To date, CAHEC has awarded $660,000 towards this homeownership initiative to help provide housing to families earning 80 percent or less of the area median income. As our team of grant readers reviewed the applications this year, we evaluated how each organization addressed a strong community need, the positive impact their development would have on the community, and their strategy for alleviating the shortage of affordable housing. We also considered the social services provided to homeowners and the organization's proposed use of CAHEC's funding.
We are excited to announce the recipients of CAHEC's 2020 Open Doors Homeownership Grant:

$25,000: Asheville Area Habitat for Humanity - Asheville, NC
$15,000: Mountain Housing Opportunities - Asheville, NC
$10,000: Athens Land Trust - Athens, GA

Each of these organizations is making important strides in providing their communities with much-needed affordable housing. To read about each organization and learn how their developments will change the lives of residents in their communities, please visit our website.
Providing Assurance to Tax Credit Investors
Guest Article Written By: B. Jones, Scott Insurance

Recently, we have seen an increasing number of property dispositions within the 15-year compliance period. While the IRS no longer requires LIHTC recapture bonds, many LP’s are hesitant to allow a change in ownership during the tax credit compliance period. Often times, for an LP to allow a change in ownership, they will require some type of security to protect the tax credits from recapture. Typically, the security is required to be in the form of an irrevocable letter of credit (ILOC) or surety bond.

As the economy changes, banks are becoming less interested in writing ILOCs and borrowers are looking for alternatives that do not tie up their lending capacity. For financially strong companies, the premiums for surety bonds can be less expensive than ILOC fees. On bonds in place for more than 2 years, we are seeing surety premiums well below 1% annually – sometimes as low as 30-50 basis points.

Additionally, surety bonds are appealing because they do not tie up available credit. While banking institutions often make you feel as though they are doing you a favor to provide an ILOC, the right surety company will welcome the additional business! 
Mission in Action
Congratulations to Muirs Landing in Greensboro, NC, on receiving a $15,000 Active Lifestyle Grant from the CAHEC Foundation to help install this awesome playground!

We're sure the youth residents will enjoy playing on this amenity for years to come.
Portfolio Highlights
Expanding our Portfolio

CAHEC has added the following properties to our portfolio:

Acquisition / Rehab

Indian Hills Village - Hickman, KY; 40 units for families; Developer: The Wallick Companies

Fully Qualified

Congratulations to the following properties who have achieved 100% occupancy:

James Pointe - Statesville, NC

Copyright 2020 CAHEC
This institution is an equal opportunity provider.