SUMMERWOOD COMMONS APARTMENTS REOPENS IN EUCLID, OH, AFTER EXTENSIVE RENOVATION; PARTNERSHIP LED BY FANNIE MAE AND CITY OF EUCLID IMPROVES

    WASHINGTON, Sept. 23 /PRNewswire/ -- More low- and very low-income renters in the Euclid, Ohio, area can enjoy safe and secure rental housing with the reopening today of the Summerwood Commons apartments that were totally renovated as the result of a comprehensive plan developed by the city of Euclid and the Federal National Mortgage Association (Fannie Mae)(NYSE: FNM) to stabilize the property.
    The successful rehabilitation of the apartments is the result of a wide-ranging public-private partnership that rescued the building from imminent condemnation by the city of Euclid.  National Church Residences of Columbus, Ohio, managed the extensive renovation of the property, formerly known as Euclid Hills apartments, and also will manage the property.  The property has gained attention for its policy of mandatory drug testing of prospective residents.  Other partners in the renovation included Ohio Capital Corporation for Housing, Ohio Housing Finance Agency, Ohio Department of Development, Cayuhoga County HOME Consortium, and Society Bank.
    "Fannie Mae's role in this partnership is an example of the positive results that can be achieved under its Showing America A New Way Home initiative," said John R. Hayes, senior vice president of Fannie Mae's 10-state midwestern regional office.  "We look forward to participating in other partnerships."
    "The work of the partners to renovate this apartment community is a positive example for the City of Euclid.  We appreciate Fannie Mae's leadership in devising the approach to find a long-term solution that benefits everyone," said Euclid mayor David Lynch.
    At the time of renovation, the property was in extremely poor condition and approximately 50 percent vacant.  Members of Fannie Mae's multifamily activities staff in its Chicago regional office met with the mayor and his staff to suggest a comprehensive, long-term plan for stabilizing the property as a way to prevent a recurrence of the problems there.
    All 167 of the apartment units are affordable to low- and very low- income residents.  Rents range from about $344 per month for a one- bedroom, one- bath unit to less than $500 a month for a three-bedroom, one-bath apartment.
    "While the new renters obviously will benefit from the renovated units and increased security, we hope the rehabilitation also will act as an anchor to prevent further deterioration in the community," Thomas Slemmer, president of National Church Residences, said.
    The updated units include all new cabinets, countertops, appliances, lighting, doors, carpeting, and air conditioning units.  The exteriors of the buildings were modified to include new entryway facades, windows, balconies and roofs, and entryway security systems at each of the 12 buildings.  Additional site improvements include entrance gates, a guardhouse, a new playground, sidewalk repair, resurfacing of the parking lot, and installation of additional landscaping.  Total cost of the renovation was more than $3 million.
    Fannie Mae donated the property to National Church Residences and used a combination of federal low-income housing tax credits and HUD
HOME funds to finance the renovation.   The city of Euclid contributed $350,000 in HOME funds (via the Cayuhoga County HOME Consortium) to help renovate the property and keep rents affordable to low- and very low- income families.  The Ohio Department of Development contributed an additional $475,000 in HOME funds for renovating the property.  Society Bank provided construction financing and below-market, fixed-rate permanent financing at 7 percent for 15 years.  The Ohio Housing Finance Agency awarded the project $3.9 million in tax credits and provided a low-interest rate bridge loan.
    National Church Residences developed the business plan for the property, including architectural drawings and budgets for the renovation.  The Ohio Capital Corporation for Housing, through the Ohio Equity Fund III, helped arrange the financing and purchase of the low- income housing tax credits generated by the property .
    National Church Residences owns and manages more than 125 apartment communities for older adults and families with moderate and low incomes. The not-for-profit organization was founded in 1961 and now operates in 21 states and Puerto Rico.
    Fannie Mae is a congressionally chartered, shareholder-owned company and is the nation's largest source of home mortgage funds.  It has committed to provide $1 trillion in targeted lending for 10 million homes by the end of the decade.  The targeted lending will serve low- and moderate- income families, minorities, new immigrants, residents of central cities and other underserved areas, and people who have special housing needs.
    -0-                     9/23/94
    /CONTACT:  Alfred L. King of Fannie Mae, 202-752-6136; or Steven A. Spaulding of National Church Residences, 614-451-2151/
    (FNM)

CO: Federal National Mortgage Association; National Church Residences ST: Ohio IN: FIN SU:

IH-KW -- DC010 -- 0603 09/23/94 11:38 EDT