Housing Development Fund

- First Time Homebuyers

HDF Helps Complete Affordable Rental Units In Bridgeport’s Washington Park Area

Nonprofit Bank Provides First Mortgage Re-Finance Combined with Rehab Funding

STAMFORD, Conn., February 12, 2007- Housing Development Fund (HDF), a unique nonprofit bank providing funding for affordable housing and an array of homebuyer assistance programs, announced that it has completed a financing that will help upgrade and repaint 36 units of affordable rental housing in Bridgeport’s Washington Park neighborhood. HDF re-financed an existing first mortgage and provided additional renovation funding for a total of $918,000 that includes $268,000 from HDF grant sources that provide gap financing for affordable multi-family rental units.

The developer of the units, which are in ten scattered sites in an eight-block radius, is Washington Park Revitalization Partnership, LP (WPRP). The WPRP General partner, the Washington Park Revitalization Corporation (WPRC), is sponsored by the Central Connecticut Coast YMCA, an experienced nonprofit developer of affordable housing through its Shore Area Community Development Corporation.

The project, spearheaded by the Washington Park Association in the late 90’s, was a bold and visionary reclamation of fourteen unique and historic properties. The creative use of historic and low income housing tax credits garnered the development a National Preservation Honor Award from the National Trust for Historic Preservation, and a HUD Best Practices Award. The simultaneous rehabilitation of fourteen historic mansions surrounding the Park that had fallen into decay also provided a definitive turning point in the fortunes of the neighborhood. Other investment and rehabilitation has occurred since the project was completed, and the neighborhood is on more solid ground today.

The financing for most multi-family affordable housing developments is complex, often layering tiers of public and private loans and grants to achieve blended interest rates low enough to allow for under-market rents. Packaging, repackaging and underwriting such complicated loans is the special expertise of HDF.

“ The loan underwriting team here at HDF is well versed in understanding the special requirements of the many public and private loan products and grants available to aid in the development of affordable units,” said HDF Executive director Joan Carty. “They are also expert at putting together packages that solve specific financing challenges and work for all involved.”

In the case of WPRP, the borrower needed a solution for paying off its original first mortgage from JP Morgan Chase and acquiring additional funds to complete renovations, while leaving in place funding from the City of Bridgeport and the Bridgeport Neighborhood Fund, Inc., as well as Low Income Housing Tax Credits through the Connecticut Housing Finance Authority.

HDF was able to put together first mortgage financing from the pool of funds made available by its consortium of 17 private banks. This concept spreads the lending risk among all the consortium members, allowing them to allocate more funds to affordable housing than they could on their own. HDF is the only organization in the area offering first mortgages, as well as funds to cover rehab and soft costs for multi-family affordable units.

About Housing Development Fund
Founded in 1989, the Housing Development Fund has expanded to serve all of southwestern Connecticut from its headquarters in Stamford and a Danbury office opened in 2004. HDF offers a variety of homebuyer programs, including its First Time Homebuyers Program, SmartMove low interest second mortgage Program, CHFA (Connecticut Housing Finance Authority) approved Homebuyer Education Classes Program and Below Market Rate Program (BMR). HDF is a HUD-certified lender and Housing Counseling agency.

HDF’s Multi-Family Lending Program facilitates the development of affordable housing. It provides multi-family homebuyers, nonprofit and private developers of affordable, senior and special needs units with a variety of finance options. HDF provides acquisition/construction, pre-development, bridge and permanent first mortgage financing at favorable interest rates – one of the only local sources of long-term, below market financing for affordable housing in its service area. Through its approach that pools risk for lenders, HDF is a leader in providing first mortgages for the development of multi-family units.

HDF manages public/private partnerships to lend funds for these affordable housing initiatives – it has the largest public/private pool of first mortgage financing for affordable housing in Connecticut – both homeownership and multi-family development- $38 million.

The Housing Development Fund, Inc. has its headquarters at 100 Prospect Street, South Tower Plaza, Suite SP-101, Stamford, Connecticut 06901. It also maintains an office at 8 West Street, Suite 202-204, Danbury, Connecticut 06810. For additional information call Tami Strauss at 203-969-1830 x19 or visit www.hdf-ct.org.