NHS and Bankers Trust expand C.A.S.H. program.

Neighborhood Housing Services of New York City (NHS) and Bankers Trust Corp. have announced the kick-off of the C.A.S.H. III Program (Closing Assistance Support for Homebuyers).

With residential real estate prices on the rise again, Manhattan apartment and home sale price increases are sending ripples throughout New York's housing market. While high-income New York homeowners are smiling with delight, the trend offers little joy for low and moderate income New Yorkers, for whom spending a higher percentage of their income on rent means little opportunity to build the savings necessary to break out of the rent cycle and purchase their own homes.

To help New Yorkers overcome these savings obstacles to homeownership that face many low- and moderate-income first-time homebuyers, NHS and Bankers Trust launched C.A.S.H. in 1994. Through this program, NHS has been able to provide down-payment and closing-cost assistance loans to credit-worthy homebuyers who have saved at least 3 percent of their down-payment. Homebuyers can borrow up to $15,000 at 8 percent for as long as eight years. The program proved to be so successful that a second round of the program, C.A.S.H. II, was initiated in late 1995.

During the first two phases of the C.A.S.H. program, nearly $2.5 million in loans were made to first-time homebuyers throughout New York City.

Mary Bond Davis and Alexander Carney, recent participants in C.A.S.H. II, are an inspiring example of the efficacy of the program. Davis and Carney, theater professionals, dreamed of buying their own home but lacked the necessary savings. With the benefit of the budget and mortgage counseling available through C.A.S.H. II, and with the opportunity to borrow $5,000 to cover closing costs, they were able to meet the requirements of their mortgage lender and purchase their own single-family home in the Kingsbridge section of The Bronx.

"It would not have been possible for us to become homeowners without C.A.S.H.," said Carney. "And, with this pew home, we have begun to build equity' and a credit history that will help us throughout our lives."

In enthusiastic response to the success of C.A.S.H., Bankers Trust Vice Chairman George Vojta recently announced the start of C.A.S.H. III. "A particular aspect of our relationship with NHS of which we are most proud is the C.A.S.H. program," said Vojta. "I am very pleased to be able to announce the formation of the third cash loan facility today, with another $2 million being made available to first-time homebuyers."

Financing for the program has been committed by Bankers Trust Company, Bank Hapoalim, Bank Leumi, USA, The Bank of Tokyo-Mitsubishi Trust Company, Emigrant Savings Bank, IBJ Schroder Bank & Trust Company, Inc., J.P. Morgan & Co., Inc., M&T Bank, North Fork Bank, and Safra National Bank of New York.

"The C.A.S.H. program is a powerful tool to have at our disposal," said Francine Justa, executive director of NHS. "Lack of savings to cover closing costs and down-payments keep many potential first-time homebuyers from achieving the goal of homeownership. C.A.S.H. loans help NHS to advance our mission to support homeownership and stabilize the under-served communities in New York City."

"The success of C.A.S.H. as an asset building strategy for moderate income families cannot be estimated," added Gary Hattem, Bankers Trust's managing director. "Homeownership is not just about shelter in our society. It is also fundamentally about wealth creation for families working themselves up the economic ladder."

NHS is a not-for-profit citywide organization working to increase and protect investment in under-served neighborhoods, to help people help themselves through education, to encourage and support neighborhood self-reliance, and to create and preserve affordable housing in New York City.