Housing Authority Helps
START Bank to Start

Thomas MacMillan Photo

HANH chief Karen DuBois-Walton

The Housing Authority of New Haven is poised to deposit $250,000 in START Bank, New Haven’s new community-focused lender. In giving a start to START, HANH is also helping its residents launch new businesses that can change lives.

The deposit comprises capital for a revolving loan fund from which HANH makes loans to its residents when they undertake their own business ventures.

The fund was established in 2008. The money will be lodged at START Bank with HANH staff and consultants making the decision on the loan recipients, not the bankers. START received final FDIC approval in December and quietly opened for business earlier this month, with a formal ribbon-cutting planned next Tuesday.

The housing authority knows of four resident-owned businesses, three construction companies and one food vendor.

According to HANH Executive Director Karen DuBois-Walton, the money in the fund was shifted into START Bank because the interest rate is competitive. The added perk’s that they [the bank] will work on financial literacy programs with our residents.”

She said that when the bank was in organization, HANH had conversations not only about START’s community investments via loans but what she termed the financial literacy arm.”

The bank will serve our residents better than check cashier” businesses, she said.

One of the current resident-owned businesses, one, former Brookside resident Yul Watleys ACT Construction, got started without a HANH loan.

Two construction companies received only technical assistance. A third construction-related company, which cleans up apartments after construction and readies them for new tenants, received a loan of $20,000 and is in the process of returning it.

A recipient has 18 months to pay back the loan; the maximum loan amount is $25,000

DuBois-Walton said that the fourth resident-owned business, a food vendor, has worked on a business plan that we expect will turn into a loan.”

The resolution to approve the deposit at START was on the Tuesday evening agenda of HANH’s Board of Commissioners; the meeting was canceled due to the snow and ice storm. DuBois-Walton said she expects the resolution to pass at the rescheduled meeting on Jan. 25. The board’s Finance Committee previoulsy gave its OK.

HANH Board of Commissioners Chairman Bob Solomon is also on the board of First City Fund Corporation, a not-for-profit that oversees START Bank, a for-profit subsidiary. He is also a board member of START Bank. Solomon plans to abstain from next Tuesday’s vote. Solomon estimated about 25 other groups have made deposit commitments.

The bank opened with $16.75 million in capital.

Sign up for our morning newsletter

Don't want to miss a single Independent article? Sign up for our daily email newsletter! Click here for more info.


Post a Comment

Commenting has closed for this entry

Comments

Avatar for Brian Jenkins

Avatar for NewHavenerOne

Avatar for THREEFIFTHS

Avatar for Bohica

Avatar for Brian Jenkins

Avatar for THREEFIFTHS

Avatar for Katie Rohner and Bob Solomon

Avatar for muddydog

Avatar for Bohica

Avatar for Katie Rohner and Bob Solomon

Avatar for land based tax

Avatar for NewHavenerOne

Avatar for Brian Jenkins

Avatar for NewHavenerOne