CDFIs Helping Communities with Natural Disasters, the Pandemic, Sometimes Both
Blog post by CDFI Coalition member Marshall E. Crawford
Less than a week before devastating tornadoes struck Tennessee, Ms. Natasha Lane had a conversation with her daughter about needing to renew her homeowner’s insurance. Then on March 3rd, 10 tornadoes touched down across the state, causing extensive damage to homes and businesses throughout the Nashville metropolis. Ms. Lane’s home was one of the properties damaged by the storms.
In 1994, Ms. Lane’s late husband had purchased the house for her as their family home, where they resided for nearly 27 years. The unexpected tornado caused internal and external structural damage to the residence. Although her homeowner’s insurance had not been renewed, combined resources of family, friends, FEMA, and The Housing Fund, provided Ms. Lane with the funds needed to restore her home.
“Thank you to every single person who donated any amount of money to my family over the last month since the tornado hit. We raised enough to make a $5,000 deposit, along with a grant from The Housing Fund, to begin repairs at my family’s house!” said Ms. Lane. “The new roof was started today, and new windows, drywall, etc. are coming next. Huge thank you to Empire Realty & Construction for the discount!”
Examples like this are plentiful, and amid two critical and overlapping crises, the March 3rd tornadoes, and the COVID-19 pandemic, The Housing Fund has an increased sense of urgency in meeting the needs of our community members.
We developed two independent approaches to support the various needs of customers. Our Power of 10 is a tiered initiative created to support customers who experienced loss during the March 3rd tornadoes and leverage capital to support greater community reconstruction efforts. For customers impacted by COVID-19, we have implemented new opportunities to help customers maintain ownership of their homes during these unprecedented times.
Our mission is to “provide resources and creative leadership to help individuals and communities create and maintain affordable and healthy places to live” and it has never been more vital to our work and dedication to our community.
Power of 10 – Tornado damage relief
We created the Power of 10 Initiative to partner with local organizations to ensure our community members have sufficient resources to rebuild, reconstruct, and restore their properties. This program provides a variety of grants and loans up to $10,000 to supplement the disaster assistance individuals, families, and small businesses can receive from FEMA and the U.S. Small Business Administration.
Our financial partnerships with Wells Fargo Bank, Citizens Bank, Simmons Bank, Truist Bank, and others have granted us the opportunity to repurpose $100,000 as seed capital to leverage $1 million for recovery efforts.
“Citizens Bank is happy to partner with The Housing Fund to assist in providing a resource of relief for those affected by the recent tornado and be part of the rebuilding of the Nashville community,” said Joan Fleming, Citizens Bank vice president of community development.
Additionally, through collaboration, we have matched the funds provided by our strategic partners: the American Red Cross, Catholic Charities, the Urban League of Middle TN, and the Small Business Administration. Our goal is to serve to 100 low- and moderate-income families while providing resources to restore 1,000 properties throughout middle Tennessee.
“As our communities across the state move from response to recovery, I am thankful the American Red Cross has partners like The Housing Fund to assist in rebuilding lives after such devastating losses,” said Joel Sullivan, regional CEO of the American Red Cross. “I hope everyone that has been affected across the state has applied for assistance with the Red Cross, The Housing Fund, and other agencies who may assist in helping storm victims recover.”
COVID Response
As our city and state leadership developed plans to reopen, we are working to ensure our preparedness for the potential widespread transmission of COVID-19 and/or the subsequent economic impact of social distancing by implementing the following measures to sustain homeownership:
- Loan deferment up to 90 days
- Cash-out refinance option
- Small dollar loans up to $1,000
By providing access to these resources, we are giving our homeowners the opportunity to preserve homeownership and wealth.
To meet the needs of our clients more aptly, The Housing Fund has collaborated with our partners and investors, and participated on various taskforces and committees, such as, TEMA Emergency Response Taskforces, Governor’s Economic Recovery – Nonprofit Committee, Middle TN Long-term Recovery Group, COVID-19 Fund Distribution Committee.
Short-term financial assistance can help families continue paying for their housing and necessities until the broader economy stabilizes. The Housing Fund is prioritizing the needs of our customers by providing access to money as quickly and directly as possible and allowing borrowers more time on their mortgages.
We will continue to respond to changes they emerge, and we will provide updates as we learn more through the various taskforces and committees.
Racial Injustice
I would be remiss not to share some brief comments about the plight of our country during this time of racial discourse. The loss of life recently has given our country an opportunity to stand together and recognize how systemic racism and other injustice has divided a nation where we need each other to make America an inclusive society.
In the words of Mahatma Gandhi – “The best way to find yourself is to lose yourself in the service of others.” The tornadoes, pandemic and now racial discourse is an opportunity for all of us to find ourselves by serving the various populations that make our country function as a democracy.
As an African American man, I am just as American as any other American, and my contributions to this country are numerous in the 50-plus years that I have walked this earth. I take pride in the work we do to serve low- and moderate-income families and ensure housing equality for all.
As the leader of a Community Development Financial Institution (CDFI), I stand strong with our communities to promote racial harmony and fight against “all” racial injustice. We are stronger together.
In closing, we are hopeful that additional federal resources for CDFIs like The Housing Fund proposed by Congress will be implemented. There is much more work that remains to not only address the needs of those who have been impacted by the tornadoes and COVID19, but to make our communities more just and inclusive.
Marshall E. Crawford, Jr., MPA, is the President & CEO of The Housing Fund in Nashville, Tennessee. Since its incorporation in 1996, THF has assisted over 3,500 first time homebuyers receive over $25 million in downpayment assistance loans, as well as providing more than $47 million in financing to assist individuals and organizations purchase, rehabilitate, or construct homes for low and moderate income families. To put these numbers in perspective, THF has lent over $75 million, which has leveraged over $400 million in private financing for more than 4,900 units.