HDF, People’s Bank & other experts offer advice to recent homebuyers at post-purchase seminar

Members of All Households Completing Post-purchase Surveys Report Being ‘Happier’ Since Purchasing First Home with Homebuyer Assistance from HDF

STAMFORD, Conn., July 10, 2006- Members of 25 households in Ansonia, Bridgeport, Danbury, Norwalk, Shelton and Stamford who recently became first-time homeowners with counseling and financial assistance from the Stamford-based Housing Development Fund (HDF), gathered at People’s Bank in Bridgeport to learn how to protect their biggest asset into the future. The group listened avidly and then asked numerous questions as experts offered advice on topics including avoiding predatory lending/refinance schemes, finding alternatives to refinancing, planning for repairs and home improvements, and understanding the rights of home and condominium owners. The speakers were Melvina Peters, Homebuyer Education Coordinator for HDF, the nonprofit bank that helped all of the new homeowners via its homebuyer assistance programs; Valencia Taft-Jackson, a People’s Bank VP who coordinates first time homebuyer programs; Neil Scott of Scott & Scott in Stamford, a home inspection company; and Richard Shapiro, partner in the Bridgeport law firm Weinstein, Weiner, Ignal, Napoletano & Shapiro PC.

Twenty-four of the 25 households represented completed post-purchase surveys that yielded some interesting data. Ninety percent reported feeling ‘much happier’ since purchasing their first home, and the balance reported feeling “happier”. More than two out of three households reported increased participation in civic and neighborhood affairs, particularly involvement in homeowners’ associations. Where reported, household incomes had increased an average of 15% since original mortgage applications. Several of the homebuyers have furthered their education levels. The survey results mirrored those of a recent National Association of Realtors study, which suggests that, in addition to tangible financial benefits, homeownership brings about positive socio-economic benefits to homeowners and their communities.

“When we work with partners like People’s Bank to help first time homebuyers, the assistance we provide does not stop at the closing table,” said HDF Executive Director Joan Carty. “HDF remains a friendly resource for our clients as they assume the ongoing responsibility of maintaining their homes and protecting their greatest investment. We are especially pleased to work with People’s, with whom we have had a long lasting and productive partnership.”

The participants offered comments on their experience working with HDF to purchase their first home: “HDF is full of friendly people who take the time to help.” “HDF taught me to budget, pay bills on time and save money.” “They made it very easy and understandable going through the process.” “HDF has truly remarkable people who really care.”

The only drawback of their home purchase that a number of the attendees reported is that their commutes have increased because they had to move farther from work to find affordable housing. But this factor has not made anyone regret the decision to purchase. And this situation, prevalent in southwestern Connecticut, is one that HDF is working to improve.

In addition to providing homebuyer assistance, HDF provides funding for affordable housing and is currently working on new programs on both the homebuyer and developer sides that will make it easier for employees to purchase in the towns where they work. HDF recently received $3 million from the new Connecticut Housing Trust Fund, which it will put to work for both homebuyers and developers of affordable housing. The organization is also seeking additional funds for these purposes.

Founded in 1989, HDF 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 which offers one-on-one homeownership counseling as well as down payment and closing cost assistance, its SmartMove low interest second mortgage program, and CHFA (Connecticut Housing Finance Authority) approved Homebuyer Education Classes. Along with HDF’s requirement that its financing be linked only to traditional, fixed-rate mortgage products, its programs have led to unprecedented stability in its portfolio.

HDF, a HUD-certified lender and Housing Counseling agency, facilitates the development of affordable housing. The unique nonprofit bank manages public/private partnerships, such as the one with People’s Bank, to lend funds for this purpose. Through its approach that pools risk for lenders, HDF is a leader in providing first mortgages for the development of multi-family units. It provides low-interest, flexible financing and technical assistance to developers and municipalities.

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.