CHD-funded projects continue to help needy

CHD-funded projects continue to help needy

Projects in the Albany Diocese funded through the national Campaign for Human Development have a track record of success and survival.

Since CHD was formed by the American bishops 27 years ago, more than $2 million in CHD funding has been given to 44 projects in the Diocese, said Al Turo, diocesan director of CHD.

Those projects include the United Tenants of Albany and the Community Land Trust, both established years ago and still serving the community. Other programs with staying power are the Statewide Senior Action Council, the Employee Ownership Program, and the Capital District Community Loan Fund.

Last year, CHD awarded $8 million in national grants, which helped create jobs, fight crime, reform schools, improve conditions in the workplace and find affordable homes for the poor.

CHD, founded by the National Conference of Catholic Bishops in 1970, is the largest private funder of organizations that empower the poor and work to eliminate poverty and injustice. Funds for CHD’s allocation program are raised through a nationwide annual collection in Catholic parishes. The collection will be taken up in parishes in the Albany Diocese this weekend.

In order to receive funding, a project must benefit a poverty group with at least 50 percent of participants coming from the low-income community. Members of the poverty group must have the dominant voice in the project, including planning and implementing. Projects must conform to the moral teachings of the Church and demonstrate a change from traditional approaches to poverty by attacking its basic causes and effecting change.

Mr. Turo described CHD as "the embodiment of our Catholic social teaching. It is the Church advocating for justice."

One of the projects in the Diocese funded in the past by CHD is the Capital District Community Loan Fund, which offers a non-traditional approach to financing projects in low-income neighborhoods. It received CHD grants in 1989 to encourage new investors.

The project was established in 1985 to pool capital that would fund housing, community development and micro-enterprises in low-income neighborhoods, explained Louise McNeilly, resource coordinator for the program.

Individuals, organizations and faith-based groups, including parishes and religious orders, invest between $1,000 and $100,000 for terms ranging between one to 15 years. Interest on the investments varies from zero to four percent.

"People don’t invest because they want to get rich," Ms. McNeilly said. "The benefit is they get to see their money hard at work in local projects with high social return, and they get to be directly involved in the solutions to the problems. It’s a concrete way to make a difference.:

The money is loaned to organizations and projects that Bob Radliff, fund manager for the organization, described as those that typically couldn’t get funding from traditional sources, such as banks. These include not-for-profit organizations that create affordable housing or jobs in low-income areas.

Banks, he explained, aren’t apt to fund young organizations without proven track records, or organizations with varied funding sources that aren’t guaranteed from year to year. In other cases, such as when a project involves renovating a building in a low-income area, "they can’t get the appraisal they need, and the bank will only lend 75 to 80 percent," he explained.

Organizations interested getting a loan from the Loan Fund make an application. During that process, they work closely with Mr. Radliff.

There are benefits to his being involved in projects from the beginning. "We try to stay in touch with the community," Mr. Radliff said. "We make sure people are coordinating their efforts."

The applications go to a loan committee, which is made up of both lenders and borrowers. In reviewing applications, the committee looks for viable projects with social impact. "Our number one concern is that it works out for the best for the community," Ms. McNeilly said.

Once a project is approved by the loan committee, it goes to the board of directors for "ultimate approval," Mr. Radliff said.

During the application process, the staff of the Loan Fund tries to help the applicant look at financing in new ways.

"We help groups look at financing differently," said Ms. McNeilly. Rather than relying on one-time contributions, for example, they encourage groups to "look at more creative, innovative ways to finance."

Mr. Radliff described the Loan Fund as "an extremely efficient organization."

"We’ve been very successful the amount of housing created, daycare programs created and concrete improvements in the quality of life," Ms. McNeilly said.

To date, more than $1.9 million has been loaned to 60-plus groups and individuals in the Capital Region.

(For more information on the Capital District Community Loan Fund, call 436-8586.) 

(11-20-97)