HOUSING DEVELOPMENT FUND MAKING A DIFFERENCE FOR FIRST TIME HOMEBUYERS IN DANBURY REGION

Significant Downpayment & Closing Cost Assistance Plus Homebuyer Education Helping Qualified Individuals & Families Afford to Purchase, Solve Housing Issues

DANBURY, Conn., February 26, 2008- A Danbury police officer now lives much closer to work in a New Milford ranch house he never thought he could own. A couple and their three small daughters have left a cramped apartment in Westchester County and found the American dream in a charming home with a backyard on a lovely street in Danbury.

These success stories represent only two of almost 100 that have unfolded for Danbury region homebuyers since Stamford-based Housing Development Fund opened its Housing Resource Center there in 2004 with funding from the United Way of Western Connecticut. Housing Development Fund is a unique nonprofit bank providing funding for affordable housing and an array of homebuyer assistance programs. The Housing Resource Center provides information, education, and counseling to residents and workers in the Greater Danbury area. HDF also works closely with local community banks to be sure that the financing packages it creates to help homebuyers bridge the affordability gap are tied to traditional fixed rate financing to assure successful homeownership.

Former NYPD officer Steven Castrovinci commuted from Putnam County, New York for more than a year after he joined the Danbury Police Department while he saved to try to buy a property here. At most, his savings would have bought Officer Castrovinci a one-bedroom condominium. But he wanted more space. A friend of his mother’s directed him to Michelle Grull at Savings Bank of Danbury, who introduced him to HDF and its programs and served as a valuable resource throughout the financing and purchase process.

His income qualified him for a sufficient mortgage to buy a house, and his savings would cover closing costs, but were far short of what he needed for a downpayment. He was able to take advantage of HDF’s SmartMove second mortgage program, which provides a low interest loan of up to 20 percent of the purchase price and helps buyers avoid the additional cost of private mortgage insurance.

“We are thrilled that by next month we will have closed our 100th home purchase in the Greater Danbury area and hope to help many more households in the coming year – which means getting the word out that we have funds that need to be put to work,” said Deborah Mac Kenzie, Program Manager for the Danbury Housing Resource Center. “When potential homebuyers learn about HDF’s programs they often think it’s too good to be true. When they realize that they can not only be homeowners, but that we can help them purchase a home that meets their needs, their lives are transformed.”

Casey Wheeler confirms Mac Kenzie’s analysis. She and her husband, Samir Djilani, were living with their now-three-year-old daughter in a tiny apartment in Westchester County when she became pregnant with their twin girls. Although her goal was to save to own a home before their daughter was three, it seemed out of reach – especially since she would be staying home with the children and they’d be living on one income.

Casey had lived in and loved Connecticut for two years and went on line to see what kinds of apartments might be available in Fairfield County. She happened on the website of a condo complex for which HDF was helping to identify buyers for below market rate units under Stamford’s inclusionary zoning regulations. When she clicked on the link to HDF’s website her family’s life changed dramatically.

“You never think that programs like this exist when you’re working and earning enough to afford a mortgage but not necessarily a downpayment and closing costs,” said Wheeler. “But HDF has created special financing for people like us. We also found our adorable house on line and MaryAlice Dinho in HDF’s Danbury office helped us through every step of the purchase process. My husband came to the United States from Algeria for a better life and he’s so proud everyday when he comes home from work and pulls up to our home.”

The Wheeler-Djilani family also took advantage of the SmartMove loan to help with their downpayment. In Danbury, HDF also makes available two other programs. Its Homebuyer Assistance program provides downpayment and closing cost subsidies up to a total of $10,000 and its Workforce Housing Fund contributes up to $20,000 to downpayment and closing costs. Often, HDF can stack up more than one program to help qualified buyers complete their purchases.

The path to homeownership for buyers like officer Castrovinci and the Wheeler-Djilani family begins with an orientation session at the Housing Resource Center where buyer qualifications are assessed and any impediments to ownership are identified so that HDF staff can help remedy them if possible. Then it’s house hunting and completing the finance and purchase process with HDF’s help.

In addition to helping bridge the affordability gap for first time homebuyers, the Housing Resource Center provides referrals to other housing resources for those residents who seek homelessness prevention, shelter and security deposit assistance. Its offices are located at 8 West Street, Suite 202-204, Danbury, Conn. 06810. For further information, call 203-798-6527 of visit www.hdf-ct.org.

The Housing Development Fund was founded in 1989. It has expanded to serve all of southwestern Connecticut from its Stamford headquarters and a Danbury office opened in 2004. HDF’s homebuyer assistance programs include 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. The organization provides homebuyers with homebuyer finance, counseling and assistance programs.

HDF offers low-interest, flexible financing to developers through its Multi-Family Lending Program. HDF also offers technical assistance to municipalities, and works with the private sector, other nonprofits, and government entities to facilitate the development of more affordable housing. Through its Advocacy Initiative, HDF convenes symposia for business leaders and community decision makers featuring national, regional and local experts on important topics related to affordable housing and homeownership.

The organization manages public/private partnerships to lend funds for these affordable housing initiatives. It has the largest public/private pool of mortgage financing for affordable housing in Connecticut – both homeownership and multi-family development- $60 million.

The Housing Development Fund, Inc. is headquartered at 100 Prospect Street, South Tower Plaza, Stamford, Connecticut, and maintains an office at 8 West Street, in Danbury. For additional information call Tami Strauss at 203-969-1830 x19 or visit www.hdf-ct.org.