MacArthur will award grants of $1 million and make $5 million of capital available to support reconstruction in the wake of Hurricane Katrina. The funds will be used primarily to support the development of permanent affordable housing for low income people in Louisiana and Mississippi.
“Hurricane Katrina has reminded us about two enduring realities in America,” said Jonathan F. Fanton, president of the Foundation. “The outpouring of sympathy, volunteer assistance and money for relief and rebuilding recalls the generosity of spirit which keeps our country strong. But the overwhelming strain on emergency services and the social safety net in the storm's aftermath also reminds us that the poor and disadvantaged are especially vulnerable in moments of crisis. The immediate task is to rebuild in affected areas, but the longer term goal must be to improve and strengthen these communities."
The Foundation will establish a fund of $1 million that will be used largely to make grants to organizations providing permanent affordable housing to low income people in the states affected by the hurricane and its aftermath.
“MacArthur will focus its contribution on the provision of permanent affordable housing. A secure, decent, affordable place to live is critical for families as they repair their lives.” said Fanton. The Foundation has worked for a number of years with organizations on affordable housing and community development throughout the Gulf Coast region.
To support longer range recovery, the Foundation will make available up to $5 million of capital in the form of no-interest loans or loan guarantee facilities to organizations engaged in the reconstruction effort. In coming months and years these non-profit organizations will provide capital for affordable housing and the rebuilding of distressed communities in the regions affected by the hurricane and flood. The loans and loan guarantees will have a multiplier effect, giving the community development financial institutions the capacity to leverage additional funds for redevelopment work.