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The Regions Foundation unveils new plan to address affordable housing

Published: Jun. 23, 2022 at 7:47 PM CDT
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FAIRFIELD, Ala. (WBRC) - The Regions Foundation is taking steps to address affordable housing in the Birmingham-metro area announcing a multi-million-dollar investment plan.

The Regions Foundation partnered with Center Creek Capital Group to transform dilapidated, single-family homes into modern, high-quality houses for low to moderate income residents.

The Regions Foundation has announced a $5 million investment plan designed to breathe new life into old, distressed properties throughout the Birmingham-metro area.

“We’ve underbuilt housing in our country for over 10 years, and so, when you think about that and the pressure that puts, especially on lower income individuals looking for housing, it’s tremendous,” said President of the Regions Foundation, Leroy Abrahams.

That’s why The Regions Group is partnering with Center Creek Capital.

The group said about 55% of rental properties across the U.S are single-family homes, and believes they’re overlooked in the affordable housing discussion.

“Which is looking at distressed single-family homes, older housing stock that’s gotten a little bit beat up over the years, and we’re trying to go in and turn it into what we see here today, which is a really nice, quality home,” said Managing Partner with Center Creek Capital, Dan Magder.

The plan comes during a tough housing market where inventory is low and even scarcer for low to moderate-income households.

Renters can participate in the pathway to homeownership program.

“They will be offered free credit counseling, financial wellness courses, and other services that can improve their lives. In addition, when they save every month for 12 consecutive months, they get a two to one match on that savings,” said Executive Director for the Regions Foundation, Marta Self.

Fairfield’s mayor calls this a win for the entire community.

“Increase the value of the neighboring houses and just put them in a safe community. That’s our goal. Just to create safe, affordable housing in the city of Fairfield to attract more citizens to this city,” said Mayor Eddie Penny.

Center Creek said the 3-bedroom, 2-bathroom house in Fairfield, which served as the backdrop for this announcement, will rent for about $1,000 a month with an option to buy compared to the average rent for a one-bedroom apartment in Fairfield, which is just over $700 a month.

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