Hits: 0
WPCNR MAIN STREET JOURNAL. By John F. Bailey. March 15, 2004: The city will begin putting out contracts for bid in the next three weeks on the first of 200 homes and multi-family units across the city, that will be rehabilitated under the city’s Community Development Program, the White Plains Housing Rehabilitation Program, using $1,000,000 in Fannie Mae mortgage money secured as a result of a chance conversation Representative Nita Lowey had with Naomi Bayer, director of Fannie Mae’s New York Partnership Office two years ago. It is the first time a city or town, anywhere in the U.S.A., has received a Fannie Mae Line of Credit.
AT LONG LAST MILLION: Mayor Joseph Delfino of White Plains, Congresswoman Nita Lowey, left, with Mike Passarella, Director of the White Plains Housing Rehabilitation Program, and Aubria Corbitt, Senior Deputy Director, FNMA New York Partnership Office. A news conference today at city hall, formally announced the $1,000,000 line of credit that was first announced at a Common Council meeting November 20 last fall. Mike Passarella, (second from left), said the check had been received, and he has 200 buildings, both homes and multi-family housing in the city averaging $5-6,000 in repairs each ready to loan out the funds.
It Started With a Simple Conversation…
Mike Passarella, the “commander” of the Rehabilitation Program since its inception 29 years ago, told WPCNR today that he had never considered Fannie Mae as a source of a line of credit before Ms. Bayer approached him and discussed the possibility of granting Fannie Mae mortgage funds for the Rehab program, which was about two years ago.
That was when Mr. Passarella started to explore the possibility with Fannie Mae. Usually Fannie Mae only provides mortgages for new construction, not existing structures, Passarella said, and that was why he had not considered them before.
In the news conference, Congresswoman Nita Lowey said she had spoken casually to Ms. Bayer “about two years ago asking what could be done about existing housing, and held some more informal conversations.” From there, according to Mr. Passarella, Ms. Bayer contacted him and a dialogue developed.
Lowey said she felt rehabilitating existing multi-family housing was important, because the person making a minimum wage today cannot afford the fair market value of a two-bedroom apartment. She said this meant professionals cannot affrod to live in areas where they work, and through this line of credit, she said the government is creating homes for those in need, and maintaining existing housing stock was “a critical component.”
Mayor Delfino thanked Ms. Lowey and Fannie Mae for investing in the future of the city.
Aubria Corbitt, Senior Deputy Director, Fannie Mae New York Partnership Office, congratulated the Housting Rehabilitation Program “together with Mike to make this happen.”
Ms. Corbitt added that the effort to secure a line of credit for the program, began 18 months ago, and described the program “as exactly the kind of partnership FNMA seeks to support, already committed, housing ready to be repaired.”
She said as part of Fannie Mae’s American Dream Commitment initiative, Fannie had $2 trillion to commit to first time homebuyers and to raise minority home ownership rate to above 50%. At this point, she said it was “considerably south of that.” Currently 70% of White Americans own their own home, and minorities, less than 50%.
LOWEY TO BAYER TO PASSARELLA: Ms. Bayer told WPCNR that Fannie Mae had been looking for a “pilot program” to use part of their $2 trillion in mortgaging funds, to rehabilitate existing affordable housing, maintaining the nation’s current housing stock, and that the White Plains program under Mr. Passarella had the kind of track record that warranted committing Fannie Mae funds. Photo by WPCNR News
Ms. Bayer added that when other cities hear of the White Plains program, the first in the nation to receive a Fannie Mae Line, she expected to be asked for lines of credit from those cities, indicating that a procedure along the White Plains Home Rehabilitation Program would be one a city should model.
Ms. Bayer and her entourage in an informal chat with Commissioner of Planning Susan Habel after the news conference, expressed interest in helping with lines of credit to support the White Plains affordable housing initiatives which include involving 6% setting aside of new apartments for low and moderate income housing and condominium owner contributions to assist low and moderate income homebuyers.
Asked if more funds would be forthcoming to the White Plains Home Rehabilitation Program after this initial $1 Million line of credit, Ms. Bayer’s Senior Deputy Director of the Fannie Mae New York Partnership Office said that funds were “unlimited,” and Ms. Bayer said after six months they would look at the program and consider committing more to White Plains.
Passarella: Roughly $15,000,000 more needed. 2,500 homes, multi-family Buildings in city in need.
Passarella told WPCNR he had identified 2,500 homes and multi-family units (consisting of buildings containing 6 to 10 apartments), that could use rehabilitation. Passarella said most owners have to refinance with their banks in order to improve their homes. By qualifying for a WP Home Rehabilitation loan, he said, they do not have to refinance. Passarella estimated that most of these 2,500 needy dwellings would require loans of some $6,000, meaning roughly the city could rehab their existing deteriorating home stock with loans of $15,000,000.
Mayor Delfino introducing the news conference referenced the city effort to make available more affordable housing and praised Mr. Passarella’s Home Rehabilitation Program for having made $8.2 Million in private loans for rehabilitaion, given out $9.7 million in community development funds resulting in the renovation of over 3,500 units.
He noted proudly that this is the first line of credit Fannie Mae has ever given to a city or town in the United States. He said Mr. Passarella’s efforts “have brought us here today. Your work has made it possible.”
Successful Program,
As reported in November on WPCNR, The Community Development Fund was founded, Passarella said, with $2 Million in funds from the Department of Housing and Urban Development. Since then, Passerella said Community Development has made loans to 2,700 individuals, leveraging $10 Million in building improvements and has generated $380,000 in interest annually for the city to replenish the fund.
As of November, Mr. Passarella reports the city had $500,000 in loans out to about 100 property owners in the city, paying the city $40,000 interest every month.
The line of credit, Passarella, said in November is a 3 year loan of $1,000,000 at 3%, and brings the Community Fund reserve at less than $1 Million up to $1.8 million.
THE CHECK COMES IN: Left to right, Naomi Bayer of Fannie Mae, Mayor Joseph Delfino of White Plains, Congresswoman Nita Lowey, Mike Passarella, Head of the White Plains Housing Rehabilitation Program, and Aubria Corbitt of Fannie Mae. Passarella said the money had been received and he was about to begin disbursing it to 200 properties already selected. The quartet hold a symobolic check for the first Fannie Mae line of credit awarded to a city or town in the U.S.A. Photo by WPCNR News
Lowey: Tommorrow Housing Authority Restoration, More Funds for Commuter Security.
In the City Hall rotunda, Congresswoman Lowey was asked by WPCNR if there were any plans afoot to seek restoration of the 25% cuts in HUD aid to Housing Authority programs initiated by the Bush Administration in 2001. She told us, “It’s the Republicans. Everything is being cut.”
Lowey praised the work Executive Director of the White Plains Housing Authority, Mack Carter, had been doing, having just toured the Winbrook complex with Mr. Carter recently.
Asked if there was any way to restore those funds taken away, Ms. Lowey, said, “change the administration. It’s the Republicans.”
Ms. Lowey revealed to WPCNR that congress will be supplying more aid to the Department of Homeland Security, as a result of the Madrid train bombings, to enhance protection in rail and commuter staging areas in this country.
