SHELTON, Wash.–Peninsula Credit Union has been awarded a $900,000 grant from the Treasury Department’s CDFI fund that it plans to use on an affordable workforce housing initiative.
Peninsula CU was one of 111 credit unions awarded a total of $45.8 million for FY 2020 from the CDFI Fund to support investments in underserved communities. It was the only CU in Washington to receive a grant in the latest round of funding.
According to Peninsula CU, the grant comes at a critical time due to continued high unemployment, plant closures and a growing sense of financial insecurity in the CU’s field of membership in Mason, Grays Harbor, Jefferson, Clallam and Kitsap counties, Washington. The grant will enable to provide affordable workforce housing loans to families in need and help revitalize the local economy, the CU said, adding its affordable workforce housing initiatives will include prefabrication mortgage and accessory dwelling units (ADU) loans.
“By helping to support housing for our workforce that is affordable, we hope to help households not be cost burdened by housing,” said President/CEO Jim Morrell,
PCU explained workforce housing refers to those who are gainfully employed, and make between 60% and 140% of the Area Median Income using U.S. Census Data.
“This is a group that is not typically understood to be the target of other affordable housing programs,” the credit union said. “In Mason County the workforce income range of roughly $40,000 to $93,000. Kitsap County is between the income range of roughly $43,000 to $100,000. In Jefferson County the target workforce income ranges between roughly $33,000 to $76,000 per year.”
Only CDFI in Town
Peninsula Credit Union said it is the only CDFI located in the communities it serves and has taken on the responsibility to help people improve their financial lives at all levels.
The credit union said it has previously introduced innovative products to help members break the bond of the check cashing cycle, including loan options that reward on-time payments by automatically reducing the interest rate, and “Save to Win,” a prize linked savings account.
With the additional funding PCU said it will be able to better execute on its mission of "listening to people, serving their members financial needs with affordable financial services, educating to create a personal development plan we demonstrate our care to enrich their lives and helping to achieve financial stability."
“I am excited to put the CDFI funds to use within our community to further our mission and critical need to support workforce housing,” said VP-Lending Chris Kirkley.
The $225-million Peninsula CU has approximately 21,000 members. It was assisted in its CDFI grant application by CU Strategic Planning, Tacoma, Wash.