Photo Release -- Affordable Housing Program Grant Assists Harrison Homebuyer

HARRISON, Ark., Nov. 19, 2009 (GLOBE NEWSWIRE) -- A $4,000 Affordable Housing Program (AHP) grant from the Federal Home Loan Bank of Dallas (FHLB Dallas) and Bank of the Ozarks assisted Connie Pillow in buying her first home.

A $4,000 Affordable Housing Program grant from the Federal Home Loan Bank of Dallas and Bank of the Ozarks assisted a Northwest Arkansas family with closing costs for their new home.

A photo accompanying this release is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6862

Connie Pillow had been renting a house for five years when her landlord informed her he was going to sell the property, Ms. Pillow said.

"I'm not real good with instability," she said. "This house could sell at anytime and where am I going to go?"

Ms. Pillow said she heard about a program through Northwest Arkansas Regional Housing Authority (NWRHA) that was utilizing Federal Home Loan Bank of Dallas (FHLB Dallas) funds to assist low-income families with buying homes. She qualified for a $4,000 grant, which assisted with closing costs, and will move into her home next week.

"I wasn't out any money," Ms. Pillow said. "I could have eventually come up with that, but I wasn't out any money at all to get started. It's just been wonderful."

The grant funds Ms. Pillow received were part of a $67,500 grant that FHLB Dallas awarded to the NWRHA, through Bank of the Ozarks in 2008. The AHP grant will assist 15 individuals or families with closing costs.

"Our housing authority provides assistance with rent for over 700 families in northwest Arkansas and manages 11 affordable rental properties, but homeownership is the dream of many who come in to our office," said Ken McDowell, Executive Director of NWRHA. "Thanks to our partnership with the Federal Home Loan Bank of Dallas, Bank of the Ozarks, and USDA Rural Development we can assist these families with financial resources to pay closing costs and provide homeownership counseling to some of these families."

The NWRHA utilized USDA 502 loan funds and the Mutual Self Help Program, allowing each new homeowner to obtain mortgage financing directly through USDA. The Mutual Self Help Program is a federal program to assist low-income families with homeownership. Participants agree to help each other build their homes and form building cooperatives. Homeowners build "sweat equity" by contributing 65 percent of the construction labor.

"It is exciting to know we were able to help this family achieve their dream of homeownership," said Martie North, Vice President and Director of Community Development at Bank of the Ozarks. "Bank of the Ozarks strives to be a community partner with entities such as the NWRHA in creating homeownership opportunities throughout Arkansas. Through this partnership, this family will be able to enjoy an affordable, brand new energy efficient home for years to come."

Each year, the FHLB Dallas returns 10 percent of its profits to the communities served by member institutions in the form of AHP grants issued through its member financial institutions. As of September 30, 2009, FHLB Dallas has awarded $8.4 million to projects within its five-state District, including more than $1.45 million to projects in Arkansas, resulting in the creation or renovation of 247 housing units in the state.

For more information about FHLB Dallas programs, please contact the Corporate Communications Department at 214.441.8445.

About the Federal Home Loan Bank of Dallas

The Federal Home Loan Bank of Dallas is one of 12 district banks in the FHLBank System created by Congress in 1932. FHLB Dallas, with total assets of $67.3 billion as of September 30, 2009, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to more than 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information, visit the FHLB Dallas web site at fhlb.com.

The Federal Home Loan Bank of Dallas logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3013

The photo is also available via AP PhotoExpress.