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September 2007
5
Salisbury Community Development Corporation Receives State Award
By Mark Wineka
Salisbury Post
Salisbury Community Development Corp. is probably best known for building houses for first-time homeowners, and that program recently received a state award for its success in the West End.
But maybe the organization should be receiving more attention for its efforts in preventing home foreclosures.
The CDC's Foreclosure Prevention Program, which started modestly in 2003 when Pillowtex plants in Rowan and Cabarrus counties closed, has provided $608,970 in direct financial assistance to 248 families since then.
CDC Executive Director Chanaka Yatawara told Salisbury City Council Tuesday that his organization wouldn't be accomplishing much if it built 10 new houses but lost 250 to foreclosures.
The CDC immediately provided credit and budget counseling to displaced Pillowtex workers in 2003, but it soon realized that families needed more than counseling if they were to make their mortgage payments and keep their homes.
The $608,970 that has provided direct financial assistance has included $397,018 from the N.C. Housing Finance Agency, $128,413 from Foundation for the Carolinas, $80,000 from United Way of Rowan and $3,538 from First Reformed Church of Landis.
Funds from the N.C. Housing Finance Agency have gone toward 18-month loans to families at no interest.
Yatawara said the Foreclosure Prevention Program started with only a $5,000 donation from United Way, as counselors such as Lou Adkins worked with banks and mortgage companies to forgive late fees and even reduce their interest rates in some cases.
The CDC continues to provide budget and credit counseling. Counseling services helped 623 families connected with the lost jobs at Pillowtex plants and the GDX automotive plant in Salisbury.
Since April, 858 families connected to layoffs at Freightliner have used CDC budget and credit counseling services.
Otherwise, the CDC targets its efforts to provide quality, attractive and affordable housing in targeted neighborhoods in the city. Its most recent focus — after revitalization efforts in Park Avenue and Jersey City neighborhoods — has been the West End near Livingstone College.
The West End Revitalization Project probably began when William Peoples drove Yatawara and City Manager David Treme through the area and pointed out about 50 homes or businesses that were boarded up and abandoned.
Yatawara said the CDC and city spent close to a year acquiring 29 properties. Of those, seven properties on West Fisher Street and one on West Horah Street now have new houses sold to first-time homeowners.
The original tax value on those properties was $106,798. Now the tax value is $895,427.
The N.C. Association of Realtors Housing Foundation's Homes 4NC recently selected the West End Revitalization as "Project of the Year."
"I'm not surprised that people outside of Salisbury are noticing what we have,' Mayor Susan Kluttz said.
Councilman Bill Burgin and Karen Alexander provided their architectural services at no cost in designing the new homes in the West End.
Another CDC house is under construction on Lloyd Street.
In the West End, the CDC owns 18 other properties; the city, three.
Yatawara said the CDC depends on partners, and 22 different public and private sector interests came together on the West End Revitalization Project.
The private sector partners included the Robertson Family Foundation, F&M Bank, Citizens South Bank, First Bank, Robinson Associates Appraisers, Cloninger Ford/Toyota, Adkins Home Inspections, Butler Builders of N.C. Inc., attorney Jay Dees, Jack and Jackie Burke, the United Way and Greg Edds of State Farm Insurance.
The public sector partners included the city of Salisbury, N.C. Housing Finance Agency, U.S. Housing and Urban Development, the HOME Consortium, Rowan-Cabarrus Community College, N.C. Cooperative Extension, Self-Help Credit Union and Consumer Credit Counseling Services of Greater Greensboro.
Technology centers, including a computer and high-speed Internet access, are installed as part of each new home. Home designs and interiors are adapted to the needs of each homeowner.
The CDC also has started a home maintenance savings plan with the help of funding from the Robertson Foundation. Monies put aside by families for home maintenance needs receive matching funds up to $500 from the foundation.
Contact Mark Wineka at 704-797-4263 or mwineka@salisburypost.com.
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