MILESTONES – 1972-1976

"You are never too old to set another goal or to dream a new dream." Those words, spoken by former legislator and nationally recognized public speaker Les Brown, best describe the man whose future seemed doomed from birth. With determination and persistence, Mr. Brown overcame hardship and realized greatness—not unlike IHFA with very similar beginnings 30 years ago.

"Legislation for the creation of IHFA almost didn’t pass," recalls IHFA Executive Director Gerald Hunter. "It quickly passed the Senate, but then didn’t get assigned to a House committee and went no where." Luckily, consumers and tenants flooded legislators with phone calls and the bill passed and was signed into law by then Governor Cecil Andrus. No one, at the time, realized that the challenges had only begun for the small agency.

The Idaho Housing Agency, as it was named until 1996, was one of only 15 other state housing agencies nationwide. "Many of these agencies hadn’t yet financed the production of housing, which had been handled mainly by the federal government and local housing agencies," notes Hunter. "State agencies were being asked to address housing problems with little or no funding."

Initially, the 3- to 4-person IHA operation was financed by federal money and housing planning grants, but had no money to finance housing construction or acquisition. "The agency had no way to secure its bonds other than liens on the housing financed or revenues from the housing," states Rick Skinner, legal counsel for IHFA since 1972 and original legislation author. "So in 1974, we reworked the legislation and submitted amendments in order to meet requirements for bond issuance."

1974 also marked the first year that IHA provided construction—interim loan notes for two projects in Firth and Fort Hall. These were made possible by the "take out" financing in place, but the agency was still not able to take on any long-term debt. Now on its second executive director, the staff and board of the agency worked tirelessly and unsuccessfully to expand its interim financing programs to include residential and multifamily. With limited funds and no new financing programs, IHA’s staff (except a bookkeeper) and executive director resigned.

The IHA Board of Directors had no staff, no funds and no programs. They decided to hire Skinner as interim director to hire new staff, find funding and search out workable programs. A third and permanent director was hired and IHA closed 1976 with an impressive $4 million construction loan note placement for the Creekside development in Pocatello.

"It sounds unbelievable, but the bookkeeper, the chairman, the new director and I all worked to create legislation securing Sales Tax backing for IHA bonds," remarked Skinner. "We were also successful in designating IHA as Idaho’s Section 8 Rental Assistance administrator—giving the agency a clearer mission and the resources to finance low-income multifamily housing."

By 1977, the legislature adopted provisions for Sales Tax support of IHA bonds, and IHA was finally able to realize its charge as the provider of affordable housing for Idaho’s less-advantaged individuals and families.