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Tuesday, February 25, 1997

State agency targets colonias for home-improvement loans

By SARAH HORNADAY Associated Press Writer

AUSTIN (AP) - With an interest in not only putting a roof over Texans' heads but improving the quality of those roofs, a state agency on Monday introduced a home-improvement loan program for low-income families.

"What we're talking about here is basic quality of life issues," said Larry Paul Manley, executive director of the Texas Department of Housing and Community Affairs.

"Just getting people into homes isn't enough," added Linda Nessie, president of the Federal Housing Administration Homeowners Center in Denver.

The federal government is participating in the state program, as is with HOME, Inc., a private home improvement lender that would originate and service the loans.

Manley introduced the Texas Home Improvement Loan Program combining private and public money to provide $13.3 million for low-income families in small towns, defined as areas with less than 50,000 residents.

"We need to be in the business of recycling money," Manley said in reference to using money from interest rates to offer more loans in the future.

The loan amount can be for no more than $25,000. All loans are for a term of 20 years. Qualified participants, usually families with incomes less than $28,700, receive the loans at 6.99 percent interest.

The loans are for any repair that improves the basic livability or security of a single family home.

The program targets families not traditionally served by commercial lenders. Half of the money is specifically put aside for colonias.

A colonia is a subdivision in an unincorporated area, typically within 150 miles of the Texas-Mexico border, that lacks sewer and water services. The agency estimates 500,000 Texans live in more than 1,400 colonias in Texas.

"I am very concerned about providing affordable housing," said Sen. Eddie Lucio, D-Brownsville. "This money will help some. Programs such as this benefit lives." Send a Letter to the Editor about This Story | Start or Join A Discussion about This Story
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