U.S. Bank Commits Funding to Sustainable Home Ownership Program in the Twin Cities
September 23 2014 - 9:00AM
Business Wire
Program’s unique structure to serve as model for expanding
homeownership opportunities
U.S. Bank closed on a $2.6 million investment in the Sustainable
Home Ownership Program (SHOP) Bridge to Success Fund, expanding
homeownership opportunity in the Twin Cities. The fund also
received investment from clients of the bank's high net-worth
wealth management unit Ascent Private Capital Management.
SHOP, which is a partnership between Greater Metropolitan
Housing Corporation and Dayton’s Bluff Neighborhood Housing
Services, provides alternative financing for potential homeowners
who are otherwise ineligible for traditional financing with the
primary purpose of allowing such borrowers to eventually resolve
credit issues and equity challenges, and move into traditional
financing.
“The SHOP Bridge to Success Fund is unique in that it utilizes a
contract-for-deed structure to expand homeownership to those who do
not qualify for traditional financing,” said Carolyn Olson,
president of Greater Metro Housing Corporation. “Thanks to
investors like U.S. Bank and its clients, we’re able to expand
local homeownership opportunities and, in turn, better our
neighborhoods in need.”
With the SHOP Bridge to Success Fund, homes are sold to buyers
on a contract-for-deed basis, with the buyer agreeing to refinance
into a traditional mortgage once they meet the necessary credit
requirements. The fund’s investors, which also include the
Minnesota Housing Finance Agency and the nonprofit Family Housing
Fund, receive payment once the traditional mortgage is in place.
SHOP is one of the first programs in the country to utilize this
structure, which has been praised by the Federal Reserve Bank of
Minneapolis as a way to expand homeownership.
“SHOP is a prime example of business and community development
partners coming together to develop a solution that meets the needs
of our community,” said Phillip Trier, market president for U.S.
Bank in the Twin Cities. “In addition to soliciting private
business investment, SHOP provides an attractive,
socially-responsible investment opportunity for individual
high-net-worth investors. Hopefully, it can serve as a template and
help generate capital to support homeownership nationwide.”
U.S. Bank is proud to support neighborhoods in the Twin Cities,
its headquarters market. Last year the bank committed more than
$264 million to the Twin Cities in the form of community
development loans, tax credit investments, U.S. Bank Foundation
grants, corporate giving and nonprofit sponsorships. That funding
helped spark urban development, create new affordable housing and
foster entrepreneurship. Furthermore, the bank’s employees in the
Twin Cities spent more than 64,000 hours volunteering in the
community.
About Sustainable Home Ownership ProgramSHOP™
(Sustainable Home Ownership Program) is a socially responsible
not-for-profit homeownership lending program of Greater
Metropolitan Housing Corporation in partnership with Dayton’s Bluff
Neighborhood Housing Services. Together, we share a vision of
affordable housing and increasing the quality of life within our
communities. While our partnership serves the entire Minneapolis
St. Paul area market, our primary mission is to provide products
for underserved individuals and families. We offer a wide range of
mortgage lending programs including FHA, VA, conventional
mortgages, MHFA programs, various down payment assistance programs,
and our exclusive Bridge to Success Contract-for-Deed program. SHOP
also focuses on outreach efforts into the community. We have built
extensive networks with community not-for -profit agencies,
faith-based organizations and financial institutions to reach
families who desire to become homeowners or who want to remain in
their existing homes. SHOP emphasizes home owner sustainability. We
believe in getting you in the home and providing the resources that
allow you to succeed in homeownership. The SHOP Team is a group of
seasoned professionals that combine years of mortgage lending
experience with a deep understanding of community needs.
About U.S. BankU.S. Bancorp (NYSE: USB), with $389
billion in assets as of June 30, 2014, is the parent company of
U.S. Bank National Association, the 5th largest commercial bank in
the United States. The Company operates 3,174 banking offices in 25
states and 5,005 ATMs and provides a comprehensive line of banking,
brokerage, insurance, investment, mortgage, trust and payment
services products to consumers, businesses and institutions. Visit
U.S. Bancorp on the web at usbank.com.
U.S. Bank Public RelationsPatrick Swanson,
612-303-5240patrick.swanson@usbank.com
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