FOR IMMEDIATE RELEASE
March 8, 2000
William Traylor, LISC: (212) 455-9899
Helen Steblecki, Citigroup: (212) 816-5771
Carol Abrams: (212) 863-5176
Colvin Grannum, BSDC: (718) 573-6893
CITIGROUP COMMITS OVER $16 MILLION TO LISC TO CREATE REVOLVING LOAN FUND THAT WILL GENERATE $100 MILLION FOR FUTURE AFFORDABLE HOUSING DEVELOPMENT
HPD Commissioner Richard T. Roberts, LISC's Michael Rubinger, and Citigroup's Pamela Flaherty Present Keys to First Buyers of Newly Rehabilitated NHP Affordable Housing in Bedford-Stuyvesant
Citigroup, Local Initiatives Support Corporation (LISC), the NYC Department of Housing Preservation and Development (HPD), and Bridge Street Development Corporation (BSDC) will welcome two new homeowners to the Bedford-Stuyvesant neighborhood of Brooklyn tomorrow. These are not ordinary new homebuyers. They are the first to purchase homes from the Neighborhood Homes Program (NHP), a new public-private partnership designed to cultivate affordable homeownership options in New York City.
Launched with a $16 million commitment from Citigroup's Community Development Investment Program and a $340,000 grant from the Citigroup Foundation, the Neighborhood Homes Program addresses the dual obstacles of providing quality affordable housing and rehabilitating dilapidated tax-foreclosed properties. Citigroup's $16 million commitment which is in the form of a below-market rate loan, is being used by LISC to establish a revolving loan fund. Over a five-year period, this fund will make over $100 million available to community development corporations (CDCs) participating in NHP.
"Homeownership gives people a real stake in their communities and is recognized as a key in creating healthy and vibrant neighborhoods," said Pamela P. Flaherty, Senior Vice President of Citigroup Global Community Relations. "We at Citigroup are committed to helping people realize the dream of owning a home, a dream that has eluded many New Yorkers, and are pleased that our investments will help address the shortage of affordable housing in the City."
LISC will make low interest loans from the loan fund, along with technical assistance, available to CDCs who receive property transfers from HPD of dilapidated tax-foreclosed two-to-four family homes. Nine CDCs, in turn, will rehabilitate, develop and offer the properties for sale to residents with an approximate household income of $30,000 - $80,000 for a family of four. The new homeowners must commit to reside in the homes for a least ten years. The first phase of NHP has culminated with 13 new homes in Bedford-Stuyvesant being offered for sale with 16 more to be completed soon in Cypress Hills and Lower Park Slope.
Over the next year, HPD plans to convey 500 additional units in Brooklyn, Manhattan and the Bronx for rehabilitation and development under NHP as part of HPD's commitment to return city-owned property to responsible private ownership. "The City's homeownership programs promote community pride and neighborhood renewal by providing families with the opportunity to invest in their homes, invest in their neighborhoods, and build equity for the future," said HPD Commissioner Richard T. Roberts.
Citigroup (NYSE:C), the most global financial services company, provides some 100 million consumers, corporations, governments and institutions in 100 countries with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage and asset management. the 1998 merger of Citicorp and Travelers Group brought together such brand names as Citibank, Travelers, Salomon Smith Barney, CitiFinancial, and Primerica under Citigroup's trademark red umbrella. Additional information may be found at: www.citigroup.com
The NYC Department of Housing Preservation and Development's mission is to promote quality housing and viable neighborhoods for New Yorkers. The department is the nation's largest municipal housing development agency. Since fiscal year 1994, the agency has constructed or rehabilitated nearly 58,000 units of affordable housing.
The Bridge Street Development Corporation (BSDC) was established in 1995 by the Bridge Street African Methodist Episcopal Church. BSDC's mission is to develop and upgrade residential housing for low and moderate income residents, revitalize the commercial corridors and facilitate the formation of small businesses within the service area, community board 3 in the Bedford-Stuyvesant area of Brooklyn. BSDC has invested over $26 million in the development of housing and revitalization of the neighborhood.
LISC is the nation's leading community development support organization. In 20 years, LISC has raised and invested more than $3 billion from the country's leading corporations and foundations for the development of urban and rural communities. In New York City, LISC has helped local nonprofit developers create over 30,000 new homes and apartments and 1,000,000 square feet of commercial, industrial and retail space.