HDF matching first time home buyers to new below market rate housing, providing purchase assistance

Non-Profit Bank Introduces Opportunity to Acquire Beautiful Affordable Condominiums in Market Rate Developments Throughout Fairfield County

STAMFORD, Conn., July 31, 2006- Participants in a Housing Fair held recently at Stamford Hospital for its employees were thrilled and surprised to learn that their dreams of homeownership could become a reality. In addition, they learned that with the help of the nonprofit bank, the Housing Development Fund (HDF), their home could be a brand new condominium close to work in Stamford. A percentage of the condos in several new market rate developments – in Norwalk and Danbury, as well as in Stamford – are being offered at below market rates (BMR) to first time buyers by their developers as part of affordable housing initiatives.

Through its BMR Program, HDF works with private developers to identify and pre-qualify applicants interested in purchasing their BMR units. In addition, HDF puts together the financing required for the purchases, often combining funds from one or more of its homebuyer assistance programs, with fixed rate first mortgages provided by HDF’s 17 commercial banking partners. Currently, HDF is working with the developers of Adams Mill River House in Stamford, Maritime Place in the SoNo district of Norwalk and High Ridge Gardens in Danbury. Units will range in price between $79,000 and $211,000 dependent on which development and on unit size and location.

“One key part of HDF’s mission is to help eligible southwestern Connecticut workers, including young people who have grown up in the area, to move into homeownership, despite the high cost of housing here,” said Joan Carty, Executive Director. “Our mission also encourages the creation of more affordable housing. Our BMR Program helps developers minimize marketing costs on BMR units while assuring qualified buyers and a smooth finance and purchase process.”

The Stamford Hospital Housing Fair attendees learned that HDF helps them all the way through the purchase process – and beyond. Their first step to homeownership was to sign up for a 30-minute orientation session at HDF’s Stamford headquarters. Orientations are also provided at HDF’s Danbury office.

Applicants complete pre-application and credit release forms and bring certain documentation with them to get the ball rolling. The only cost is $20 for a credit report. This initial information helps HDF counselors determine applicants’ eligibility for a variety of programs.

If there are more qualified applicants for a particular development than available units, applicants are placed into a lottery that determines highest priority order for the units. In addition to units in HDF’s BMR Program, the organization also helps first time homebuyers purchase single family homes, condominiums and multi-family properties available on the open market.

All HDF home buyer assistance programs, which make low interest or no interest loans to help with down payments and closing costs, require one-on-one purchase counseling and participation in post-purchase seminars, all of which help to assure successful homeownership. Pre- and post-purchase educational seminars and counseling address all aspects of home buying and ownership, including budgeting, saving for down payments and home maintenance, establishing and maintaining excellent credit, the mortgage process, home inspections, alternatives to re-financing, avoiding predatory lending practices and other related topics.

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 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 is a HUD-certified lender and Housing Counseling agency that facilitates development of affordable housing. The unique nonprofit bank manages public/private partnerships 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.

HDF provides low-interest, flexible financing and technical assistance to developers and municipalities. HDF has the largest public/private pool of first mortgage financing for affordable housing in Connecticut – both homeownership and rental - $38 million.