Southern proactively addresses a complex, deep-rooted, and formidable set of housing issues in a region that has experienced long-term economic decline and stagnation. In the Delta, high unemployment and high poverty rates combined with poor housing stock mean that alarming numbers of people live in run-down homes, in overcrowded homes, in uninsulated homes, or in homes with no kitchen or even plumbing facilities. The proliferation of vacant buildings have contributed to high crime rates in many Delta communities, and poor housing conditions lead to a rash of health problems as well, including high rates of asthma and other respiratory diseases.
Adding to the problems, many traditional banks in the region practice “redlining,” a discriminatory practice in which the banks refuse to make mortgage loans within certain geographic areas. Because Delta communities tend to be severely racially divided, the upshot of this practice is to deny traditional mortgages predominantly to black residents. As a result, black homebuyers all too often do business with predatory mortgage lenders, which are rampant in the region.
Housing is at the heart of rural development. By supporting the American Dream of homeownership in Delta communities, Southern is also encouraging people to invest in the safety and appearance of their neighborhoods, directly increasing the standard of living, decreasing population out-migration, increasing the property tax base (which bolsters local government and public works), and increasing asset levels and equity (which spurs additional investment in the community).
Asset Builders
Southern Good Faith Fund’s Asset Builders program provides housing, economic, and credit skills counseling and training for prospective homebuyers plus a 3:1 matched savings account product that can be used for home purchase or repair. So far, Asset Builders has helped over 70 matched savings account participants purchase homes, leveraging $3.2 in mortgage loans.
A New Homeownership Opportunity
Southern Financial Partners is introducing a new product to directly compete with the predatory lenders that thrive in the region. The Opportunity Mortgage Initiative is targeted to low- and moderate-income Delta residents who do not qualify for traditional mortgages.
High-Quality Housing Developments
Southern Property Corporation’s mission is to develop affordable housing in the Delta. SPC has already developed single- and multi-family housing worth over $9.7 million. The new 20-unit Southern Place Apartments in Helena-West Helena is the fulfillment of a community goal identified in the Delta Bridge Project planning process.