Situated near New Orleans’ prominent Pontchartrain Expressway is a 100-year-old building in the midst of major changes. New Orleans Mission, a 30,000-square-foot facility that houses 300 men and women struggling with homelessness and addiction, is in the process of being rehabilitated, thanks in part to a $500,000 Affordable Housing Program (AHP) grant from Fifth District Savings Bank and the Federal Home Loan Bank of Dallas (FHLB Dallas).

The grant will help fund Phase 2 of a three-phase rehabilitation initiative. The grant will help repair the rear facade and the interior of the facility. Renovations will include repairs to the framing, sheathing and moisture barrier of the exterior facade. In addition, a portion of the facade will be demolished and reconstructed with a kitchen storage facility, which will also provide a more discreet entry option for guests.

Fifth District Savings Bank President and Chief Executive Officer Brian North worked with New Orleans Mission Executive Director David Bottner during the grant application process. This is the second time Mr. North teamed up with New Orleans Mission through the AHP. A $500,000 AHP grant helped fund Phase 1 of New Orleans Mission’s rehabilitation initiative in 2013.

“The transformation of this building reflects the transformation of the individuals who stay at New Orleans Mission,” said Mr. North. “The AHP provides critical gap funding for projects like this and we are grateful for the opportunity to effect change in our community through this program.”

One of the objectives of the rehabilitation project is to recapture the building’s original charm. The first phase of the project provided a new roof and facades for the building, which was once a furniture store. As an homage to the building’s history, the building’s front facade features storefront-style windows and furniture.

“We did this so when people in the community drove by, they wouldn’t see a shelter, but a beautiful building,” said Mr. Bottner. “Phase 1 was meant to help beautify the landscape of the city’s corridor.

Beautification was not the only objective of Phase 1. When work began on Phase 1 in 2015, Mr. Bottner was surprised to see the extent of the building’s deterioration.

“We originally thought the project was going to cost $700,000, but when we opened up the walls, there was so much termite damage there were no studs. It was amazing the walls were still standing,” he said.

Work began on the second phase in March 2016 and is expected to be completed early this year.

FHLB Dallas annually returns 10 percent of its profits in the form of AHP grants to the communities served by its member institutions, like Fifth District Savings Bank. AHP grants fund a variety of projects, including home rehabilitation and modifications for low-income, elderly and special-needs residents; down payment and closing cost assistance for qualified first-time homebuyers; and the construction of low-income, multifamily rental communities and single-family homes.

“The AHP is both a community reinvestment tool, as well as a vehicle through which FHLB Dallas members like Fifth District reinforce their bond with their customers,” said Greg Hettrick, first vice president and director of Community Investment at FHLB Dallas.

Mr. Bottner said that without the grant, construction would have been delayed.

“The grant was a tremendous blessing and we’re incredibly grateful,” said Mr. Bottner. “The funding provided a bridge between Phase 1 and Phase 2. Right now it’s just a raw building, but eventually people are going to say, ‘Wow, I really want to live here.’”

About Fifth District Savings Bank

Established in 1926, Fifth District Savings Bank is a federal mutual savings association. Our goal is to support the rebuilding of the New Orleans area by offering a variety of quality financial products with service that exceeds our customers’ expectations. With six locations across Louisiana, our primary mission is to provide a safe, secure place for local depositors to invest their savings and to reinvest their deposits primarily in home mortgage loans which enable our borrowers to buy, build, and repair homes in our local community. For more information, visit fifthdistrict.com.

About the Federal Home Loan Bank of Dallas

The Federal Home Loan Bank of Dallas is one of 11 district banks in the FHLBank System created by Congress in 1932. FHLB Dallas, with total assets of $58.4 billion as of September 30, 2016, is a member-owned cooperative that supports housing and community investment by providing competitively priced loans and other credit products to approximately 850 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico, and Texas. For more information, visit fhlb.com.