House of Hope, Inc., Minnesota , 
$500,000 Community Facilities Direct Loan

The House of Hope, Inc. (HOH) is a nonprofit corporation, which has broad-based community representation within its membership and board of directors. HOH has been in operation since 1971, providing a halfway house for men recovering from alcohol and drug addictions. The project will be located in the south-central Minnesota community of  Mankato. The HOH currently operates from two older homes that have been converted to serve 17 residents. HOH owns these two buildings. They also rent two homes that serve 8 additional residents.

The proposed project would consist of a one level, 10,000 square foot facility and will serve 28 residents. The interior space will include a quiet lounge, TV viewing rooms, visitor area, dinning room, laundry area and a commercial kitchen. The new facility will improve coordination and services by being housed in one building. Handicap accessibility will also be improved. Total estimated cost is $1,000,000.

HOH began planning for a new facility in 1997 by purchasing the land for $58,500. HCFP first met with HOH in early 1998 to discuss project development and potential funding sources. By early 1999 the funding was falling into place, but the funding sources were all looking for someone else to commit to the project first. HCFP obligated the $500,000, 30 year loan in January 1999. Shortly thereafter, commitments came from Minnesota Housing Finance Agency on a $100,000, 30 year deferred loan and a $50,000 grant from the Federal Home Loan Bank in Iowa. Local fund raising efforts have come up with an estimated $250,000. The balance of the funding will come from the sale of the existing buildings for a projected $100,000.

This is a major project for HOH in terms of cost. Other credit was not available due to cash flow margins and down payment requirements. Major revenues sources for HOH are the Minnesota Department of Corrections and County Social Service Agencies. Construction is expected to begin in 2000 with an October 2000 opening date.

By Jim Maras, Program Director, Community Programs Manager, Minnesota State Office, HCFP, USDA