WESLACO, Texas - The Federal Home Loan Bank of Dallas (FHLB Dallas) and Wells Fargo recently celebrated the grand opening of Weslaco Village Apartments, made possible, in part, by a $750,000 Affordable Housing Program (AHP) grant.
Weslaco Mayor Adrian Gonzalez and Weslaco Chamber of Commerce joined in the celebrations.
FHLB Dallas, which is a cooperative of approximately 800 member financial institutions, supports housing and community development and in 2024, FHLB Dallas has committed to awarding more than $78 million in AHP General Fund grants.
In an exclusive interview with the Rio Grande Guardian, Melanie Dill, community development and AHP rental manager for FHLB Dallas, said that through additional first-time homebuyer and owner-occupied repair programs, FHLB Dallas has committed nearly $100 million to affordable housing across its district.
Dill said the newly renovated units in the Weslaco Village Apartments are a critical affordable housing project in South Texas. She said the renovated units will now serve low-income families, 74 percent of whom are female heads of household, adding that this milestone underscores the importance of affordable housing in Texas, particularly for vulnerable populations.
“The Affordable Housing Program, or it's sometimes referred to as AHP, for short, is a gap funding source that's available to members of the Federal Home Loan Bank. The funds can be used to help finance the purchase, construction and rehabilitation of owner occupied rental or transitional housing, as well as housing for the homeless,” Dill told the Guardian.
“Our funds must be used to benefit low income households with incomes out or below 80% of the median income for the area, and recipients are selected through a competitive application process.”
Dill continued: “So the story is that the Federal Home Loan Bank of Dallas has provided $750,000 in AHP subsidies through our member Wells Fargo and those funds were to benefit the reconstruction of the Weslaco Village Apartments, which was developed by Housing and Community Services, otherwise known as Prospera.”
Dill said the Weslaco property was originally an apartment building with 44 units and it was a little over 40 years old.
“The old property was demolished and a new one was constructed in its place to provide a total of 50 affordable housing units. So our AHP subsidy helped to fund this reconstruction, which resulted in overall improvements to the property, including six additional units better energy efficiency and upgrades to meet the American with Disabilities Act requirements, and this new project will serve very low income families in the Weslaco area.”
Jacque Woodring, executive director and CEO at Prospera, said the Weslaco Village Apartments underwent an $18.9 million reconstruction to upgrade units for energy efficiency, upgrade to meet the American with Disabilities Act requirements and improve overall conditions at the property, which was more than 40 years old. She said the AHP grant was part of the financing for the project that enabled its successful completion.
Woodring pointed out that apartments serve extremely low-income residents, of which 74 percent are female heads of households and 45 percent are under age 18.
“This is the common face of affordable housing today with these families often surviving on $36,000 or less in annual income,” Woodring said. “Today’s grand opening gives South Texas families a place that they can feel proud to call home, and the AHP grant was a vital piece of the financing that made this project happen.”
Misty Ramsey-Clark, vice president and community lending and investment real estate manager at Wells Fargo, said AHP funds assist FHLB Dallas members in financing the purchase, construction and rehabilitation of owner-occupied, rental or transitional housing and housing for homeless individuals. She said the funds must be used to benefit households with incomes at or below 80 percent of the median income for the area.
“We’ve worked with Prospera a number of times as we consider them an industry leader in providing affordable housing,” Ramsey-Clark said. “We are proud to team up with them and FHLB Dallas to provide high-quality affordable housing in South Texas.”
Greg Hettrick, senior vice president and director of community investment at FHLB Dallas, said that in 2023, FHLB Dallas awarded $28.4 million in AHP grants to 43 affordable housing projects. He said the grants will help create 2,677 new or rehabilitated housing units. Hettrick also pointed out that FHLB Dallas made available $79.4 million in Affordable Housing Program General Fund grants. He said award winners will be announced later this year.
“Our Affordable Housing Program General Fund, which will award more than $79 million in grants in our five-state District this year, is making a positive impact in South Texas where the need for affordable housing is great,” Hettrick said.
About the Federal Home Loan Bank of Dallas
The Federal Home Loan Bank of Dallas is one of 11 district banks in the FHLBank System created by Congress in 1932. FHLB Dallas, with total assets of $126.2 billion as of June 30, 2024, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to approximately 800 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information, visit fhlb.com.
