Realtor group breaks new ground
Foundation grants help low- and moderate-income homebuyers

When rising demands on household budgets combine with tougher lending rules, buying a home is far less attainable for low-income families. But in St. Lucie County, the local Realtor organization created an innovative way to help prospective homebuyers get grants that help purchase a home.

“Imagine Realtors having the capacity to gift a new homeowner with $2,500 for closing costs or necessary repairs?” says Staci Storms, CEO of the Realtors Association of St. Lucie (RASL). “[By creating a charitable foundation] we developed a program that will assist low income families realize the dream of home ownership.

“The purchase price of a new home can be overwhelming at any time, but especially in today’s economy,” says Storms who also serves as CEO of the RASL Foundation. “The [RASL] Foundation is taking an active role in addressing the ongoing housing affordability crisis.”

RASL created the foundation in 2006 to award $2500 grants only to low- and moderate-income homebuyers. Recipients must live and work in St. Lucie County, have a pre-approved letter from a lender and a home under contract, whether or not they are working with a Realtor. Funds are dispersed to the lender, typically during the closing period, or may be applied to a vendor for repair or improvement service.

In 2006, the foundation turned away more applicants than it awarded due to lack of funds, but that is changing now. “Raising funds for the foundation has not been difficult,” says Storms who now raises more than $16,000 from traditional activities, which includes an Annual Caddie Auction and Golf Tournament and appeals to local businesses.  “One of our local brokers, Dave Bessette of All Florida GMAC Real Estate, contributed $10,000 to the foundation and has already funded a St. Lucie County librarian's dream of home ownership,” says Storms.

The foundation also makes an innovative appeal to banks for donations. Banks must pass examinations for compliance with the Community Reinvestment Act (CRA) of 1977 and can earn CRA credits for helping low-income families or for helping organizations that support low-income neighborhoods, according to Toni Santiuste of National City Bank Foundation. In 2008, the National City-Harbor Foundation donated $10,000 as well as making a $15,000 matching grant. “It’s a win-win,” says Santiuste, “because it helps the county to keep people in the county and we get CRA credit, though [CRA credit] is not the reason we make the contributions.”

When Storms puts on her Realtor association hat, she reports that the foundation has been a worthwhile endeavor without being a financial burden. “What’s unique about our foundation is that it also impacts our (c6) corporation to receive administration fees. This has helped RASL rely less on membership income by [positively] affecting our non-dues revenues.”

For more information about this program, contact Staci Storms at (772) 465-6080 or visit http://www.rasl.com.