On November 22, the Federal Home Loan Bank of Dallas and Texas Capital Bank announced a subsidy they have awarded to a homeless youth center in Houston. Covenant House Texas will receive $750,000 as part of the Affordable Housing Program created by FHLB Dallas and its partners.
According to the FHLB Dallas press release, the grant will be used to redevelop the Covenant House Texas campus in Houston. The organization is faith-based and was founded in 1983 to create a safe space for homeless youth.
The executive director of CHT, Leslie Bourne, stated in the press release that this funding was essential to their mission.
“We really wanted to create a safe space for our residents, many of whom are severely traumatized from their past, which may include human trafficking,” Bourne said. “The funds are essential to our project as we have outgrown the current buildings. Texas Capital Bank and FHLB Dallas were as invested in our project as we were, which truly made this a partnership. We are grateful for their efforts.”
The organization has a long-term shelter that provides youth with counseling and educational programs. According to the press release, the new 104,000 square feet campus will cost $42 million to finish.
It will increase the CHT capacity by more than fifty percent by creating 26 double-occupancy rooms. These rooms will be able to house 52 homeless residents between the ages of 18 and 24. The press release states the new campus will also have common areas, office spaces, and space for support services.
According to Jenny Guzman, the Vice President and community development officer for Texas Capital Bank, the AHP has allowed them to benefit their community.
“Covenant House Texas helps to provide housing and wraparound social services to 18- to 24-year-olds in Houston, the only organization of its kind in our community,” Guzman said. “AHP has allowed us to serve in a meaningful way as a partner to Covenant House Texas as they build capacity and grow their programs to help these young men and women create a bright future. We are honored to be a partner in this project.”
Texas Capital Bank’s Executive Vice President and head of middle-market banking, John C. Sarvadi, has also been on the CHT Board of Directors since 2001.
“I am fortunate to have been involved with Covenant House Texas for years and due to the subsidy awarded by FHLB Dallas, the organization is well on its way to meeting its goals to redevelop its aging campus, which will allow this amazing organization to continue to live out its mission and serve homeless youth in Houston,” Sarvadi said in the FHLB Dallas press release. “At Texas Capital Bank we are proud to partner with FHLB Dallas to provide AHP funds to organizations like Covenant House Texas that make a positive, lasting impact on the lives of others.”
Since 1990, FHLB Dallas has worked to award AHP funding to communities and organizations that need it. Greg Hettrick, the first vice president and director of Community Investment at FHLB Dallas, said the program lets bank member partnerships support these groups.
Hettrick said, “The AHP opens the doors for Texas Capital Bank to support at-risk youth so organizations like Covenant House Texas can continue serving its residents through its shelters and other programs.”