HOUSING
DEVELOPMENT FUND ANNOUNCES ITS SMARTMOVE SECOND MORTGAGE LOAN
POOL EXPANDS TO TOTAL OF $26.5 MILLION
Early Deployment of Initial
$9 Million Funding Pool for First Time Homebuyers Program
Motivates Additional $15.5 Million Commitment Among Seven
Banks
STAMFORD, Conn., November 12, 2007- The Housing Development
Fund (HDF), a unique nonprofit bank providing funding for
affordable housing and an array of homebuyer education and
assistance programs, announced that its SmartMove second mortgage
loan pool recently expanded to a new total of $26.5 million,
after the initial pool of $9 million was deployed before its
three-year schedule. Based on the success of this program
targeted to first time homebuyers, the loan pool’s seven
member banks committed an additional $15.5 million to be deployed
over two years. HDF expects to complete deployment of the
pool by June of 2009. The banks that contribute to the SmartMove
loan pool include Citibank, Peoples United Bank, Savings Bank
of Danbury, Newtown Savings Bank, First County Bank, Hudson
City Savings Bank and Bank of New York Mellon Corporation.
SmartMove helps bridge the affordability gap for first time
homebuyers by lending up to 20 percent of the downpayment
on a home at a low three-percent interest rate for 20 years.
In addition to cost-effectively supplementing buyers’
down payments, SmartMove allows them to avoid paying private
mortgage insurance (PMI), making homeownership even more affordable.
“The SmartMove program is successful because it is meeting
a real and growing need in our high-priced housing market,”
said HDF President & CEO Joan Carty who explained that
the number of SmartMove loans has increased steadily since
the program launched in 2004. “In addition, HDF’s
banking partners have enthusiastically stepped up to the plate
to help us innovate programs like SmartMove that allow them
to re-invest in their communities and result in greater homeownership
for Connecticut.”
HDF assisted 35 homebuyers with SmartMove loans by the end
of its first fiscal year, 2005. Each successive year has increased
exponentially, and the organization is on target to close
165 new SmartMove loans in fiscal year 2007-2008.
HDF
received a special recognition from the Connecticut Mortgage
Bankers Association (CMBA) when it launched SmartMove and
recently received a second recognition for the ongoing success
of the program. The CMBA Committee for Affordable Housing
selected HDF for this latest honor. HDF financially assisted
its 500th Homebuyer in December of 2006 and has at the present
time helped 650 households to homeownership.
“In developing pools of funds for its programs that
finance the development of affordable units and, in the case
of SmartMove, close the affordability gap for first time homebuyers,
HDF has worked closely and effectively with the Connecticut
banking community,” said Rose Holbrook, a member of
the CMBA Affordable Housing Committee and Marketing &
Customer Service Coordinator for the Connecticut Housing Finance
Authority (CHFA). “The type of assistance SmartMove
provides, tied to traditional, fixed-rate mortgage financing,
as required by HDF, is promoting successful homeownership.”
To date, SmartMove loans totaling $13.9 million have leveraged
$53 million in first mortgage loans, according to HDF data.
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. 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
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