Local Builders Launch Innovative Investment in Housing Trust; Three Builders Team to Donate $400,000, and Then Challenge Other Developers to Match Gift.

Business Editors/Real Estate Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 29, 2000

A $400,000 donation to the Housing Trust of Santa Clara County (Housing Trust) by three area home builders is the most innovative contribution since the fund was launched 13 months ago.

Rivermark Partners, a partnership of three regional home builders, Centex Homes, Shea Homes and Lennar Communities, announced today that it will donate a portion of the profit from each home sale within its planned Santa Clara community to the Housing Trust. For each home sold, $200.00 will be derived from the profits at the time of closing and donated to the Housing Trust.

"These three builders are demonstrating their concern for the whole community as they develop homes within our community," said SVMG President Carl Guardino. "Their creative, innovative approach to investing in the Housing Trust could be emulated by every homebuilder in our Valley."

The goal of the Housing Trust is to raise $20 million within a 24-month cycle. This $20 million leverages $200 million in private development dollars, which allows the fund to initially assist 5,000 families in three critical-need categories; first-time home buyers, affordable rental homes and homeless shelters and assistance. Since most of the funds are loans, rather than grants, this becomes a permanent funding source that initially helps those 5,000 families, and then many thousands more into the future.

"We are pleased to give back to the community by supporting more affordable homes in the Silicon Valley with this contribution," said John Ochsner, Project Director. "We hope that the financing provided to the Housing Trust by Centex, Shea and Lennar will play an important part in the development of much needed housing located near transit corridors, job centers, and recreational areas."

By building at least 2,000 homes in the community, Rivermark will generate a minimum donation of $400,000 to the Housing Trust. Approximately 13% of those 2,000 homes will be designated as affordable. Rivermark is going beyond developing a unique program in giving to the Housing Trust, they also will be pitching a challenge to other area developers to either match or exceed their gift.

The Rivermark Community hopes to begin construction in early 2001, which will include a variety of market rate and affordable housing. Approximately 1,890 homes are planned for the 152-acre community, including approximately 475 single family homes, 635 townhomes and 780 multi-family homes. Public facilities will include an elementary school, library, police substation and fire station. Rivermark will include a large park central to the community, in addition to pocket parks located and integrated throughout the community with greenbelts to encourage local residents to walk to the library and, or retail center shops. Rivermark homes will also be offering the latest in high tech wiring and a community intranet.

Rivermark will be located in Santa Clara, California, south of Hope Drive, west of the Guadalupe River and north of the Montague Expressway on the site of the former Agnews Hospital West Campus. For more information regarding the proposed Rivermark community go to www.rivermark.net.

About Rivermark Partners

Rivermark Partners is a joint venture of three of the nation's largest developers, Centex Homes, Shea Homes and Lennar Communities. Pooling their resources allows the Rivermark team to benefit from the ingenuity and expertise of the partnership as a whole. Together the team has more than 100 years experience as leaders in development of residential and commercial properties.

Centex Homes is the nation's largest homebuilder and a pioneer in the development of master planned communities and mixed-use projects. Centex is the only homebuilder to rank as one of the top ten homebuilders in the nation for three decades.

Shea Homes has a history rich in landmark achievements. Its parent company dates back to the 1880's and has worked on such projects as the Hoover Dam and the Golden Gate Bridge. Shea Homes has been building homes for the past 30 years and is the nation's largest privately held homebuilder.

A publicly held company, Lennar Communities has been building homes since 1954 and is one of the few companies in the country to receive the prestigious Diamond Builder Award for Excellence in Customer Satisfaction.