UBB's Development Corp wins grant to aid flood victims

Northwestern Financial Review, Jan 24, 1998

United Community Bankers Development Corporation, the nonprofit corporation organized by United Bankers Bank of Bloomington, was awarded a grant of $448,500 by the Federal Home Loan Bank of Des Moines. The grant will be used to assist low-income residents of flood damaged areas in acquiring housing through the funding of a portion of their real estate closing costs. It is estimated that more than 200 households will be assisted by the grant.

Commending the organizations for their cooperative work on the grant, Minnesota Governor Arne H. Carlson stated: "The involvement of United Prairie Bank of Slayton, the Federal Home Loan Bank of Des Moines and United Bankers Bank is a wonderful example of an effective public/private partnership. The funds from the grant award not only help fill in gaps where needs exit, but this assistance will also serve as an important complement to the state's $125 million flood relief package and the programs the state has already put in place."

James G. Sneer, chairman of the board of United Bankers Bank and United Prairie Bank of Slayton, sponsored the grant application with the Federal Home Loan Bank of Des Moines. "We are extremely pleased to have had the opportunity of serving as the sponsor of the grant. The development corporation is a great example of community banks working together to help people in need."

Allen Olson, president of the Independent Community Bankers of Minnesota, supported United Bankers Bank President William C. Rosacker in encouraging community banks to participate in the initial organization and funding of the Development Corporation. "We're proud of community bankers coming together and meeting a pressing community need," Olson said. "Community banking in Minnesota is representative of billions of dollars of customers' financial lives. The successful grant application is one small way that community bankers are helping their friends and neighbors overcome a terrible tragedy."

"Governor Carlson's office, Commerce Department Commissioner David Gruenes and Deputy Commissioner James Miller were instrumental in supporting and guiding us through this process," said Rosacker.

The Federal Home Loan Bank of Des Moines provided funding for the grant under the bank's affordable housing program. Sam Connell, president of the Home Loan Bank, stated: "We are very pleased to see the flood recovery continue in such a great cooperative effort. This is an immense project and we applaud all of our members who have been a part of it."

The Development Corporation is in the process of working with the Minnesota Recovers Task Force to implement streamlined procedures and guidelines under which flood victims can apply for assistance with mortgage closing costs.

Rosacker said he expects the money to begin to reach those in need by the first of February.