Gateway Community Development Fund Receives $100,000 Grant From U.S. Treasury

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) August 8, 2011 -- The Gateway Community Development Fund, an affiliate of the St. Louis Equity Fund and the Kanas City Equity Fund, has received a $100,000 Technical Assistance grant from the United States Department of the Treasury.

Erica Dobreff, president of Gateway and the Kansas City Equity Fund, announced the grant. “This is a big boost to Gateway, and just as big for the state’s low-income communities. Gateway, the St. Louis Equity Fund and the Kansas City Equity Fund work to promote affordable housing, but do so with different tools. Since this grant will bolster the assistance Gateway provides, the collective ability of the three organizations to help meet the dire need for affordable housing will be enhanced.”

Gateway promotes community development in economically distressed neighborhoods by providing financial products, such as pre-development loans and first mortgage loans, to owners and operators of affordable housing. It also provides technical expertise in a range of related areas, such as construction management and guidance in seeking other sources of financing.

Gateway’s affiliate organizations, the St. Louis Equity Fund and Kansas City Equity Fund, invest in low and moderate-income housing with capital raised from financial institutions and corporations. The Equity Funds purchase federal and state low income housing tax credits as well as federal historic tax credits from developers, allocating the benefits of the credits to their investors.

Gateway supports both rental housing developments and home-ownership opportunities, as well as other community development activities. The Equity Funds invest solely in rental developments. The organizations focus on the greater St. Louis and Kansas City metropolitan areas, but also serve low-income areas throughout Missouri.

Gateway will use the grant to expand its consultant and training services for potential borrowers and users of development services, as well as to secure investor and lending partners. In addition, a portion will be used for software that will allow Gateway to more efficiently service its loans and report in accordance with Treasury guidelines.

The grant may lead to more long-term growth for Gateway. “According to the application guidelines, this grant designates Gateway as an ‘emerging’ CDFI by the U.S. Treasury,” Dobreff explained. “That means Gateway is one step closer to being
designated as a ‘certified’ CDFI. When certification is granted, Gateway will be eligible for even more Treasury funding, via its Community Development Financial Institutions Fund, which will allow Gateway to greatly expand its efforts to support affordable housing and economic development in low-income areas.”

Gateway Community Development Fund was created in 2009. For more information on the organization, visit: www.gatewaycdfi.com.
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affordable housing     economic development     Gateway Development Fund     Kansas City Equity Fund