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Harwich Ecumenical Council outlines emergency housing loans and rental aid used in Orleans
Summary
Kimberly Borgia of the Harwich Ecumenical Council for the Homeless described HEC's 0% deferred emergency loan program and one-time rental assistance, noting Orleans has used the program for about 10 applications since 2017 and that the current Orleans loan cap is $25,000.
Kimberly Borgia, executive director of the Harwich Ecumenical Council for the Homeless, told the Orleans Affordable Housing Trust that her nonprofit runs a municipal-funded housing emergency loan and a one-time rental-assistance program that serve low- and moderate-income borrowers.
Borgia said the Orleans program is structured differently than many towns: the loan is 0% and deferred “in perpetuity,” meaning the lien stays on the property until sale or transfer. "So the loan stays on there until they sell it or transfer the property, and then it would come back to the town at that point," Borgia said. She acknowledged some applicants balk at a lien that does not expire but noted the arrangement replenishes the town's fund for future borrowers.
HEC has handled about 10 Orleans applications since 2017 and, overall for Orleans, HEC has approved roughly 11 loans under the local program, Borgia said. She reported the Orleans maximum loan amount is currently $25,000 and urged the trust to consider raising the cap as construction costs have risen; in other towns, the average loan size cited by HEC is nearer $35,000.
Board members asked how liens are handled at sale and whether HEC assesses loan-to-value. Borgia said payoffs are handled at closing: closing or selling attorneys contact HEC for a payoff amount and the loan is removed from sale proceeds. She added that she has not encountered a case where a property's value was insufficient to cover the loan.
On operations, Borgia said HEC is a small organization with mostly paid staff: about four on the housing side and six at the children's center. Funding comes from a mix of federal, state and local grants as well as donors and fundraising; HEC also uses Community Development Block Grant (CDBG) funds when available.
"We have been able to help about 11 people over the lifetime of the Orleans program," Borgia said, and she invited the trust to refer residents to HEC or to request updates as applications come in.
The trust praised the presentation and asked staff to consider whether the trust should adjust program guidelines and the loan cap at a future meeting.
