NMHC discusses funding and projects with Rotary

Rotary Club of Saipan officers and directors, from left to right, Community Service director Dr. Nelson Krum, club president Wendell Posadas, president-elect Irene Holl, sergeant-at-arms Mario Valentino, club vice president Jessy Loomis, and secretary Joann Aquino pose with Northern Marianas Housing Corp. director and CEO Jesse S Palacios after his presentation yesterday at the club’s luncheon at the Hyatt Regency Saipan. (CHRYSTAL MARINO)

Northern Marianas Housing Corp. corporate director and CEO Jessie Palacios joined the Rotary Club of Saipan yesterday during the club’s luncheon at the Hyatt Regency Saipan in Garapan to talk about NMHC’s Community Development Block Grant Disaster Recovery Program, or CDBG-DR program.

During his presentation, Palacios said the program was created in response to the CNMI’s need for reconstruction after Typhoon Magkhut and Super Typhoon Yutu in 2018. So far, he said, the CNMI has received nearly $244 million in funding for the islands’ restoration and repair.

The CDBG-DR funneled federal money into housing and infrastructure programs, economic revitalization, planning, and administration, Palacios said, with the highest allocation of funds going into housing programs at 46% of the $244 million, which is $113,362,000.

Infrastructure was the next highest funded, which got a share of 43% or $105,881,835 of the total funding. Economic revitalization received 4%, planning 2%, and administration, 5%.

Palacios added that when putting an action plan together, they identified the CNMI’s unmet needs total $1.1 billion. Since the grant only reached $244 million, it was only able to cover 22% of the CNMI’s unmet needs.

Right now, the homeowner rehabilitation and reconstruction program is one of the sectors of the housing programs that still has available funding and is open to applicants, Palacios said.

Under this program, individuals may apply for the reconstruction or repair of homes damaged by the typhoons.

The single family new construction/ homebuyer program is already closed to applicants since last year, Palacios said, and there is already a waiting list on it.

The third program, which is also still available, is the Affordable Rental Housing Development, and this program will assist existing or new landlords who want to build rental homes for low-income families.

In order to meet the criteria, and access this assistance funds, Palacios explained that homebuyer applicants must be a U.S. citizen or green card holder, they must be a first-time homebuyer, a resident of the CNMI at the time of the application submission, and occupy the property as their primary residence. The homebuyer applicant must also be pre-qualified for a mortgage loan based on nationally-accepted underwriting standard of conventional mortgages, they must attend a NMHC’s Homebuyer education program and earn a certificate of completion, and they must meet established income requirements.

“So for our housing program, it’s really a combination of a loan and a deferred loan, or a grant. So the lower income you have, either you don’t pay anything to have your home built or fixed, and then the higher the income, the higher the non-interest varying loan you have to pay back, but it’s very affordable.” Palacios said

As of Nov. 15, 2022, Palacios said they have already distributed 1,337 loan packets, 762 were submitted, 301 loans have been approved with funding, and 160 are on the waiting list.

When discussing infrastructure, Palacios said they are working with the Public School System and are seeking to repair the Marianas High School, William S. Reyes Elementary School, Francisco M. Sablan Middle School, and Tinian Elementary School.

Palacios also mentioned endeavors to fund the building of several Northern Marianas College classrooms, and also fund the repairs of the Commonwealth Healthcare Corp.’s Community Guidance Center’s Transitional Living Center, and Substance Abuse Treatment and Recovery project.

In addition to these projects, as well as some road repairs, Palacios added that they have set aside $8.66 million for tourism, marketing, and promotion as well as the workforce development. Some $7.5 million was given to the Marianas Visitors Authority for tourism and marketing. The workforce development budget, given to the Northern Marianas Technical Institute, amounted to $1,160,000.