Banking and insurance leaders honored

Real Estate Weekly, March 15, 2000

Neighborhood Housing Services of New York City (NHS) and the NYC Department of Housing Preservation and Development (HPD) recently acknowledged members of the banking and insurance industry at a breakfast sponsored by KeySpan Energy celebrating the affordable housing commitments of eight financial institutions and two insurance companies.

Institutions recognized for their continuing partnerships with NHS' Housing Development Fund Corporation and Community Development Corporations, were Astoria Federal Savings, Bank Audi, The Bank of New York, European American Bank, fleet Bank N.A., Greenpoint Bank, The Industrial Bank of Japan, Ltd., North Fork Bank, Allstate Insurance Company and State Farm Insurance Companies.

The eight financial institutions honored have actively participated in the continued growth of housing in NHS' target neighborhoods and the stimulation of development throughout New York City. Combined, these organizations are responsible for over $3.4 million in grant funding to support NHS' mission and $5.7 million in capital agreements, consisting of lines of credit, term loans and a consortia.

Partnerships with the insurance industry have been a critical part of NHS' helping homeowners protect their investments. Since 1995, NHS has facilitated 5l3 policies totaling over $104 million. 161 of those policies were from 1999, an amount four times the total number of policies for 1995, which was 41. Allstate Insurance Company and State Farm Insurance Companies have been among the leaders in participating in NHS programs. Together they have contributed over $1.1 million in grant funding and are active volunteers on NHS committees and education seminars.

"HPD's partnership with financial institutions, community service providers, affordable housing developers and countless others improves the quality of life in New York City through rental and homeownership housing development," said Richard T. Roberts, Commissioner of HPD.

NHS' housing development program is the cornerstone at NHS in creating partnerships throughout New York City to expand and provide homeownership opportunities and stimulate economic growth in traditionally under-served neighborhoods. HPD is one of NHS' leading partners in developing these housing opportunities. Since 1994, NHS' partnership with HPD has closed on public and private financing totaling $37 million and led to the development of 169 city-owned buildings into viable housing for low- and moderate-income residents of New York. That development has provided 278 residential units and 34 commercial units.

Through its HPD partnership, NHS has been active in four major programs:

"HOPE 3" is a program that provided residents 80 percent below the New York median income (below $30,000 for a single person household) with the opportunity to become first-time homeowners. NHS received a total of 82 buildings to renovate through this project. One-family homes were sold to the residents who qualified for between $65,000 and $90,000.

"HomeWorks" is an ongoing program in which HPD designates vacant city-owned properties to organizations such as NHS to develop into affordable housing. To date, NHS has been designated 77 buildings over the two rounds in which NHS has participated in the program. The program is unique because no income restrictions are placed on home buyers. This is made possible through the assistance of financial institutions like Astoria Federal Savings, which provided financing on 36 of the 43 buildings in the first round.

"Store Works" is a program that gut-rehabilitates small city-owned mixed-use buildings into viable commercial and residential space throughout Queens and Brooklyn. The program that began in 1998 has 34 buildings in its first round. NHS will begin construction on an additional 50 buildings in the first half of 2000. Construction financing for this program is made possible through European American Bank and pre-construction financing from the Industrial Bank of Japan, Ltd.

"Neighborhood Homes" is the latest program in which NHS is partnering with HPD. This program transfers one- to four-family properties to non-profits like NHS to rehabilitate and sell. The pilot for this program consists of 10 buildings in Southern Queens.

According to Francine Justa, executive director for NHS, "This outstanding financial commitment and support from the banking and insurance industries compliments the ongoing partnership with HPD in developing programs and continues NHS' dedication to the importance of ensuring housing for continued growth of the neighborhoods we serve."