WPCNR COMMON COUNCIL CHRONICLE-EXAMINER. By John F. Bailey. November 20, 2003: Mike Passarella, director of the city’s Community Development Agency announced Wednesday evening that the Federal Home Loan Mortgage Agency, better known as Fannie Mae has awarded a $1,000,000 credit line to the City of White Plains Community Development fund — the first such credit line the agency has ever awarded to an American city.

FANNIE MAE AWARDS ITS FIRST CREDIT LINE EVER TO A CITY AND THE WINNER IS WHITE PLAINS: Mike Passarella announces the historic Million Dollar Line to the Common Council Wednesday night. Photo by WPCNR News.
Passarella has been working with Fannie Mae for a year and a half to convince them to secure the loan, and was advised of the approval this week. Passarella said the loan now increases the Community Development loan fund available to businesses and home and multi-family home owners to between 1.7 and 1.8 Million dollars. Mayor Delfino, in introducing Mr. Passarella before the November work session of the Common Council, said the loan was historic because Fannie Mae has never leant money to a city before, and said it was a result of the city’s Triple A credit rating.
Passarella told WPCNR the loan was to the city for $1MM at 3%, a very favorable rate which the city could lend out at 3%, and could only be leant to refurbish single and multi-family homes.
In announcing the historic loan, Passarella went through a detailed history of the Community Development fund which was founded in 1975, with $2 Million in funds fron the Department of Housing and Urban Development. Since then, Passarella said Community Development has made loans to 2,700 individuals, leveraging $10 Million in building improvements and has generated $380,000 in interest annualy for the city to replenish the fund. Presently the city has $500,000 in loans out to about 100 property owners in the city, paying the city $40,000 in interest every month.
The agency has never had one borrower default. Passarella said he creditchecks and clears all possible loaners himself, and by lending money to property owners in the city, his agency has helped them qualify for additional credit lines enabling them to rehabilitate and upgrade their properties. He told how one bank asked him how he possibly could make so many loans and not have a default, because the bank itself had a default rate of 3%. Passarella said the city is its own “banker,” because “I can’t wait 6 months to get a loan approval from a bank.”
He said Community Development funds have been used to modernize parks in the city, fund two computer centers, build the Senior Citizens Center on Mitchell Place, refurbished 18 of 21 shelters, and presently is helping to provide funds to turn the former Metro North Substation at the end of Tibbetts Avenue behind Rochambeau School into a commercial warehouse.
Passarella said the city expects to close on the Fannie Mae loan December 15, and would have 3 years in which to repay the $1MM loan. The loan restores the Community Fund reserve, currently at less than $1MM, bringing it up to $1.8MM.