By Ryanne Higley
Dr. Edward M. Gramlich, member of the Board Governors of the Federal Reserve System and Vice-Chairman of the Board of Directors for Neighborhood Reinvestment Corporation, spoke as part of National Neighbor Works Week on Thursday, June 8, in the Wilkinson center.
“I think the biggest concern is the breakout of inflation,” Gramlich said when addressing the issue of the United States’ economy, “Any indication of less inflation is moving in the right direction.”
Dr. Gramlich was appointed by the President of the United States and approved by the Senate. He said the Federal Reserve has an extensive arrangement with local communities. There are 12 reserve banks in the US and 24 branches, one being in Salt Lake City.
Gramlich said the Federal Reserve Board for the Neighborhood Reinvestment Corporation is the parent association of the 200 Neighborhood Housing Services (NHS) networks all over the world. He said the state of Utah has two working networks, one in Provo and the other in Salt Lake.
The Provo NHS has great statistics of home improvement loans and have become a certified community association in the six years they have been at work, Gramlich said. Although with all the accomplishments of the NHS in Provo and Salt Lake, challenges are going to step up, Gramlich said.
One challenge is the influx of population. This has done two things, Gramlich said.
It has increased the number of new workers in the area, which limits the growth of wages, and the mountains in the area provide infinite places to build houses so land cost goes up, Gramlich said.
Gramlich said the problem Provo faces is the rise in housing, with wages staying the same.
Home ownership would be difficult to promote if families can not afford to buy. This is why NHS has developed suitable approaches to meet these challenges, Gramlich said.
Gramlich said 8-10 percent of the nation’s housing is a factor of the economy.
Nationwide, the NHS does not impact much in macroeconomics, but Rick Smith, Resource Development Chairperson for NHS in Provo, says it has a huge impact in local economies.
“The NHS promotes home ownership which advocates a degree of pride, Smith said. “This pride to keep homes nice as a owner infuses a lot of money into local economies.”
NHS is a nonprofit neighborhood revitalization of downtown neighborhoods. They are in partnership with city governments, local businesses and city residents, said Kena Mathews, program coordinator of NHS in Provo.
Mathews said NHS promotes home ownership through low interest first interest mortgages, down payment cost existence, home improvement loans, beautification projects (such as Paint Your Heart Out, happening Saturday June 10), low loans and grants with down payment assistants, and grass roots leadership.
At the luncheon Smith announced the sponsors of NHS. Of the seven announced, two brought with them sizable contributions. Central Bank brought a $500 check for the organization and First Security Bank donated a $8,000 to NHS.
“If a lot of people come together and give a little, a lot can happen,” said Provo Mayor Lewis Billings, who was one of many city officials who attended the luncheon.
