Local credit union strikes a blow for affordable homeownership!
Donation of over $500,000 supports families in making homeownership a reality
SPARTANBURG, SC (February 12, 2024) — Carolina Foothills Federal Credit Union (CFFCU) initiated a community project that recently ended with homeownership for three single–mom households through a donation by the credit union of over $500,000!
The Moving Families Forward project was a collaborative effort envisioned by the credit union in 2022 to stabilize Spartanburg’s Northside. The purpose was twofold: to help reduce the transient rate at Cleveland Academy of Leadership and build generational wealth for at least three families
Families selected for the program earn between 40-82% of the Area Median Income (AMI), which makes it exceedingly difficult to manage mortgage payments in today’s market. To further complicate the affordability issue, one family was paying $1,596 a month for a one–bedroom studio housing three people. The ability to save for a down payment is excruciatingly slow
The credit union enlisted the community’s help. Cleveland Academy of Leadership screened potential families for the program and performed the initial assessment. ReGenesis Healthcare provided 360- health services with self–care instruction. Northside Development Group deeded two lots for the project. Spartanburg, SC 29303 First Presbyterian Spartanburg mentored the families and spiritually advised them. Carolina Foothills, a financial cooperative/Community Development Financial Institution (CDFI) provided 12+ hours per family of financial coaching, mitigating the credit risk, and making it possible to give them first time homeowner mortgages based on construction cost at zero percent. The total interest savings for the three families of $527,276.
Bringing in four collaborators was the best thing we could do to ensure success on this project,” said Terri Hendrix, Vice President of Engagement for CFFCU. “You have heard the adage, ‘it takes a village to raise a child,‘ well, it takes a community to work on affordable housing and home ownership for all.”