YAZOO CITY — Construction has begun on the redevelopment of Magnolia Crossing, an 86-unit housing development of single-family homes and duplexes for low-income families in Yazoo City.
The Federal Home Loan Bank of Dallas (FHLB Dallas) and Bank of Yazoo provided Magnolia Crossing a $460,000 Affordable Housing Program (AHP) grant to assist with the renovations.
Each year, FHLB Dallas returns 10 percent of its profits to the communities served by its member institutions, in the form of AHP grants. The grants are used to assist in the development and/or rehabilitation of affordable, owner-occupied and rental housing for very low- to moderate-income families.
Betty Reid, executive director of the Yazoo City Housing Authority (YCHA) and Gateway Community Development Corporation (Gateway CDC), an affiliated nonprofit of YCHA, the project developer, said, “The redevelopment of Magnolia Crossing with its many financing tools, has offered a sustainable solution to preserving the existing deteriorated public housing stock. This project also provides an economic incentive by bringing jobs into the community.”
The renovations include both interior and exterior improvements, including new countertops, new tile floors, and improvements to the heating and air conditioning systems. The five-bedroom units will be converted into four-bedroom units, and most of the bedrooms of the other units will be resized. In addition, there will be cosmetic updates to the exterior of the buildings, a new main entrance, and new signage.
Bank of Yazoo also provided a portion of the construction funds for the rehab project.
“Community banks have a responsibility to invest in the communities they serve,” said Bank of Yazoo President and CEO Van Ray. “We at the Bank of Yazoo take that responsibility to heart. You will see our employees at the baseball field, church, chamber of commerce, civic clubs, and giving back to our communities. We want to invest our resources where they improve our community.”
In addition to the AHP grant, Magnolia Crossing also received tax credit proceeds through City Real Estate Advisors, Mississippi HOME funds, a loan from Hope Enterprise Corporation, and construction funds through Bank of Yazoo and Trustmark National Bank.
The renovations are scheduled to be completed by April 2015.
In 2014, FHLB Dallas awarded $9.8 million in AHP grants to 33 projects located primarily within its five-state District of Arkansas, Louisiana, Mississippi, New Mexico, and Texas. The funding will result in the creation or rehabilitation of 1,586 housing units.