Program’s unique structure to serve as model for expanding
homeownership opportunities
MINNEAPOLIS--(BUSINESS WIRE)--Sep. 23, 2014--
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 Program
SHOP™ (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. Bank
U.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.
Source: U.S. Bancorp
U.S. Bank Public Relations
Patrick Swanson, 612-303-5240
patrick.swanson@usbank.com