Housing Development Fund

- First Time Homebuyers

HDF & partners gather at ground breaking for The Renaissance condominiums in Danbury

Non-Profit Bank Matches First Time Home Buyers To Below Market Rate Housing, Aligning With Savings Bank of Danbury, Danbury Housing Authority & GRC Developers

STAMFORD, Conn., September 28, 2006- More than 50 people, including the Mayor of Danbury, representatives of the Danbury Housing Authority, area bankers, private developers, and nonprofit housing officials gathered this week to break ground at The Renaissance, in Danbury. In proclamation designating “The Renaissance”, Governor M. Jodi Rell said, “The addition of The Renaissance will benefit the community at large. The fact that GRC Property Investment & Development, the Housing Authority for the City of Danbury, Newtown Savings Bank and the Housing Development Fund are creating such affordable housing is a true testament to the dedication, commitment and tireless efforts of all involved.”

The renovation of the former High Ridge Gardens public housing complex into 60 private condominium units of affordable housing highlights the successful collaboration of the organizations cited by the Governor. As the units are completed, GRC will sell the new condominiums to low and moderate income households. Units will range in price from $190,000 to $210,000 depending on unit size and location.

From left to right, Gary Michael of GRC Property Investment; Mayor Mark Boughton of Danbury; Bob Gleason of GRC Property Investment; Donna Ramey of Savings Bank of Danbury; and Joan Carty, Susannah Gillette and Lenin Alfaro of HDF at The Renaissance groundbreaking on September 27, 2006.

The Housing Development Fund, the nonprofit bank with offices in Danbury and Stamford, and the Savings Bank of Danbury will provide mortgage, down payment and closing-cost assistance. The units, which are expected to be available starting at the end of this year, will be offered to qualified first time homebuyers that participate in HDF’s First Time Homebuyers Program, which includes counseling, credit repair and homebuyer education.

“We believe in collaboration as a way to pool knowledge and resources to make good things happen,” said Joan Carty, HDF Executive Director. “With the participation and contribution of our funding partners, including banks, private developers and government agencies, we are able to move people into homeownership and support the creation of more affordable housing. The Renaissance is a perfect example of this model.”

As part of its First Time Homebuyers Program, HDF works with private developers like GRC to identify and pre-qualify applicants interested in purchasing their below market rate units. HDF also 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 from its banking partners, in this case, the Savings Bank of Danbury. The bank is also funding the purchase and renovation costs of the project.

"We are pleased to be able to once again do what we do best, helping individuals and families achieve homeownership," said Donna Ramey, EVP and Chief Operating Officer of Savings Bank of Danbury. "Our aggressive first-time homebuyer program, together with our partnership with the Housing Development Fund will make this a truly successful project."

As the largest funder of affordable housing and assistance to homebuyers in Connecticut, HDF oversees a number of First Time Homebuyer initiatives. Its Homeward Bound Program helps public housing tenants move successfully to home ownership through counseling, advocacy and financial assistance. To date, HDF has placed more than 116 households into homeownership through its Homeward Bound Program. The Renaissance will add another 60. In addition to the Danbury development, HDF is currently working with the developers of Adams Mill River House in Stamford, and Maritime Place in the SoNo district of Norwalk. HDF provides technical assistance to a number of municipalities including Fairfield, Greenwich, Norwalk, Danbury and Stamford, helping their housing authorities to develop and administer affordable housing initiatives.

The organization also helps first time homebuyers purchase single-family homes, condominiums and multi-family properties available on the open market. HDF homebuyer assistance programs make low interest or no interest loans to help with down payments and closing costs. To assure successful home ownership, the organization requires one-on-one purchase counseling and participation in post-purchase seminars. 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.

“ It’s so exciting to resurrect housing for those who need it most. The transformation of this property is like watching Phoenix rising from the ashes,” said Danbury Mayor Mark Boughton in addressing the gathering. “This is a great day for our community and an example of partnerships at work as we meet the need for home ownership through affordable housing.”

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.