HDF Completes Process to Find Qualified Buyers for Maritime Yards Affordable Condo Units

Lottery at City Hall Breaks Ties for Two Units & Establishes Waiting List for Future Units

NORWALK, Conn., November 8, 2006- The Housing Development Fund (HDF), a unique nonprofit bank and housing services organization, announced that it has completed the process to identify, qualify and select buyers for the six units of affordable housing at The Maritime, the SoNo condominiums being developed by Spinnaker Real Estate Partners (SREP). SREP engaged HDF to create and implement a fair process for making the four two-bedroom and two one-bedroom units available to first-time homebuyers, with an emphasis on identifying buyers who live and/or work in Norwalk. The final two buyers were selected in a lottery at Norwalk City Hall, in which Mayor Richard A. Moccia and Spinnaker CEO Clayton H. Fowler participated, to break ties in the point system that was part of the process.

The buyers include an art director, a Stop and Shop Peapod division employee, a bank employee, a quality assurance inspector, two country club employees and a manufacturing company employee. Based on second and third lottery rounds, buyers who were not selected in the first round received places on an HDF waiting list for future affordable units that may become available.

“ We brought HDF on board because of its expertise in working with and educating first time homebuyers, in putting together financial assistance packages that work with traditional fixed-rate mortgage products, and in helping developers and municipalities create fair processes to meet criteria for affordable units,” said Spinnaker’s Clayton Fowler. “Spinnaker Real Estate Partners is gratified to be able to provide beautiful homes for these hardworking individuals and families who all deserve to enjoy homeownership and who are fully capable of meeting the responsibilities.”

In including the affordable units in the luxury condominium development, SREP worked collaboratively with the Norwalk Redevelopment Agency, which wanted to make it a priority to provide homes for individuals and families already living and/or working in Norwalk. Accordingly, HDF created a 30-point system that included those factors, as well as others designed to score applicants on good credit, savings and homeowner education.

To find the ultimate buyers for the six units, HDF fielded 110 inquiries. Seventy of these households attended an orientation at HDF offices in Stamford or Danbury. Of these, 43 were deemed ready to secure a mortgage commitment. Thirty-five of these households were also income-eligible for The Maritime (80 percent of State Median Income, based on family size). Fifteen of the 35 households were pre-qualified by the HDF Loan Department as able to secure a first mortgage at the purchase price. These 15 went through the scoring process and were assigned units based on their scores, with the highest-scoring household choosing first. There was a two-family tie for the final two-bedroom unit and a three-way tie for the final one-bedroom unit, necessitating the lottery.

“ Successful homeownership is the primary goal when we help first time buyers and developers,” said HDF Executive Director Joan Carty. “To find and assist the most qualified buyers for units offered at affordable levels is a lengthy process that, as nonprofit specialists, we can deliver extremely cost effectively. This creates a winning situation for both buyer and seller.”

For the first time homebuyers who will purchase the affordable units at The Maritime, it marks the end of long searches to find and purchase affordable homes in the high-priced Norwalk market. One of the buyers who has been living in Bridgeport will now eliminate the daily commute to her job in Norwalk. According to another of the winners of the Maritime lottery, “This is a good program because families with moderate income can have their dreams come true!”

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 further first time homebuyer information on qualifying for and purchasing affordable units or for developer information about HDF’s Below Market Rate Program, call Tami Strauss at 203-969-1830 x19, or visit www.hdf-ct.org.

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.