FORT LAUDERDALE , Fla., July 19 /PRNewswire/ -- Before Katrina and Rita cuta swath of devastation through the Gulf Coast region in 2005, there wasHurricane Charley in August 2004 . Today many Hurricane Charley victims remainin "temporary" housing, including government-purchased trailers. One mutualfund -- the CRA Qualified Investment Fund (CRAIX) -- is trying to do somethingabout this unresolved situation with its support for the Charlotte CountyHurricane Housing Recovery Program (HHRP).

In a groundbreaking innovation in financing for disaster recovery, theCRAIX mutual fund is investing $7 million in the Charlotte County HurricaneHousing Recovery Program to supply a pool of investment capital for lenders,which will then distribute money to individual Hurricane Charley victims whoare in desperate need of affordable, long-term housing. Participatinginstitutions in the HHRP program include SunTrust Bank, Countrywide FinancialCorporation, and Mercantile Bank. In addition, Fannie Mae is partnering withthe Charlotte County Housing Authority and The Housing Corporation in theirhurricane relief efforts to guarantee loans.

Monies raised from the CRAIX bond initiative will go to supporthomeownership rehabilitation, down payment assistance, new construction ofsingle family homes, condos, duplexes or triplexes, mobile home replacement,mobile home moving expenses, and construction of material purchase. Inaddition, the Hurricane Housing Recovery Program will support rentalinitiatives such as a rental assistance program and a community land trust forrentals.

CRAFund Portfolio Manager Barbara VanScoy said: "My team and I havediligently worked for nine months with the housing authority and investmentbankers on this deal in order to enable millions of dollars to flow to thosewho need it most. As gratifying as it is to know that seven million dollarswill reach its intended target, it is equally gratifying to know that a blueprint is now in place for other devastated communities to gain access tocapital to get back on their feet as well."

She added: "This is a forward-looking approach. We are solving a problemhere and creating a template that can be picked up and used again by otherlocal and state governments looking for innovative ways to provide assistanceto storm-hit regions. We are involved in this project because affordablehousing is a major investment priority for the CRA Qualified Investment Fundand its investors. The bonds we are supporting in Charlotte County will backmuch needed aid for families in Florida whose lives were turned upside down bythe massive storm that hit Charlotte County. We want to take this opportunityto applaud the important work of both Charlotte County Housing FinanceAuthority and the participating local financial institutions."