Funds will go to housing projects
HARLINGEN — About $105,000 in recently acquired funds will go toward low- and moderate-income housing projects in Harlingen and San Benito, officials from the Harlingen Housing Finance Corporation said.
The money is surplus from the organization’s repayment of bonds that were issued in 1997, HHFC financial advisor Steve Harris said.
The corporation originally issued $10 million in bonds at 6.4 percent interest and used the proceeds to purchase mortgage loans, which were issued at 6.5 percent interest, more than enough to pay the bonds.
The loans were paid within $1.5 million of the original $10 million and HHFC, in order to repay its bonds in full, liquidated assets at 103 percent of original value, leaving HHFC with the money now in its reserves, Harris said.
“We’ve been exploring things that the corporation might be able to do (with the money) and it is our hope that we will have something to offer to the public by as early as next year,” Harris said.
