2001 Public/Private Partnership Awards

MAYOR ALEXANDER PENELAS, MIAMI-DADE COUNTY

OUTSTANDING ACHIEVEMENT AWARD

MIAMI-DADE COUNTY AND FANNIE MAE
HOUSE SOUTH FLORIDA PARTNERSHIP

House South Florida is a five-year $14 billion lending and investment strategy created by Fannie Mae in 1997 for the counties of Broward, Miami-Dade, Monroe and Palm Beach. The plan provided homeownership and rental opportunities to 165,000 utilizing Fannie Mae financing. House South Florida was an expansion of House Miami-Dade created in 1995 with a $5 billion commitment. During the five-year period through July 2000, Fannie Mae has invested over $14.7 billion in affordable mortgage financing assisting more than 169,599 families.  The significant statistics of this financing include:

    ·        52.1 percent assisted minority home buyers

    ·        39.5 percent assisted low- and moderate-income families

    ·        31.5 percent assisted first-time home buyers

Fannie Mae works closely with all counties and many other housing partners to expand homeownership opportunities, reduce consumer costs, break down barriers to homeownership and serve as a catalytic force in the revitalization of communities.

Expanding homeownership activities

    §         Invested  $1 million in Community Development Financial Institution (CDFI) Initiative through equity investments and certificate of deposits to Eagle National Bank, Peoples National Bank, Continental National Bank and Gulf Bank.

    §         Provided $6.1 million in Down Payment Assistance Investment Notes (DPAINs) to the Broward, Miami-Dade, and Palm Beach County Housing Finance Authorities, and the Florida Housing Finance Corporation. These DPAINs provided down payment and closing cost assistance for low- and moderate-income families.

    §         Fannie Mae purchased $102 million in mortgage revenue bonds with the Broward, Miami-Dade, and Palm Beach County Housing Finance Authorities providing affordable housing to low- and moderate-income families.

    §         More than 5,255 families purchased homes in South Florida using Fannie 97, our most flexible lending product, providing $396.0 million in financing to borrowers earning less than the area median income.

Tailoring products to local needs

Fannie Mae designed several products to address mortgage-financing barriers identified by key housing partners in the South Florida community:

    ·        The Neighborhood Infill & Stabilization Program (NISP), a $3 million commitment, was created to address the disparity between the market value and the cost of construction in low-income neighborhoods.

    §         To serve former recipients of public assistance and very-low income individuals in Miami-Dade County, Fannie Mae approved Homeownership-Through-Work, a $10 million mortgage experiment.

    §         Under the leadership of the Miami-Dade Housing Agency, the American Dream Mortgage Guarantee Program, a $5 million commitment, was designed to stimulate for-profit developers to create new housing in underserved communities.

Increasing multifamily affordable housing

Fannie Mae also recognized the need of affordable rental housing as a critical issue. In five years, Fannie Mae invested nearly $846.4 million in multifamily developments providing more than 22,000 units of affordable rental housing.

Fostering economic development

Through its American Community Fund (ACF), Fannie Mae approved and invested $8.1 million in local affordable housing community development ventures, including:

    §         Equity investments of $700,000 in Brownsville Renaissance Shopping Center, a neighborhood center; $367,000 in Poinciana Village, 24 new townhouse units; $432,000 in Point Royal Townhomes, 40 new townhomes developed by Pinnacle Housing Group; and $1.293 million for The Shoppes of Liberty City, a neighborhood center.

    §         Debt investments of: a $5 million line of credit to the Miami-Dade Housing Agency; a $331,000 debt investment in Biscayne East, 15 townhouses developed by Little Haiti Housing Association and Al Townsel, Inc.

Fighting discrimination

    ·        CitiMortgage and Fannie Mae South Florida PO announced a partnership to provide $1 billion in affordable mortgage lending in South Florida over the next five-years

    §         Four South Florida counties (Monroe, Miami-Dade, Broward, and Palm Beach) were selected to participate in Fannie Mae’s $100 million New Immigrants Underwriting Initiative.

    §         Fannie Mae continued to assist two faith-based initiatives in the Miami-Dade County area: New Birth Baptist Church and San Juan Bosco Catholic Church, granting more than $105,000 to support their homeownership efforts in the African-American and Hispanic communities, respectively.

Raising home-buyer awareness and building counseling capacity

Partnership Office training sessions on new affordable Fannie Mae housing products were attended by more than 2,000 lenders, nonprofits, and real estate professionals.

    §         Special training sessions on HomePath Adviser, Desktop Home Counselor, Timely-Payment Reward, Condominium/PUD Approval, and Credit Union Opportunities were held in conjunction with local lenders, nonprofits, governmental agencies, real estate professionals and faith-based organizations.