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HOUSING PARTNERSHIP AND CITIBANK ANNOUNCE INNOVATIVE LENDING PROGRAM FOR MINORITY AND WOMEN-OWNED BUSINESS

 NEW YORK, Oct. 26 /PRNewswire/ -- The Housing Partnership Development Corp., a non-profit subsidiary of the New York City Partnership, today announced The Minority Contractor Assistance Program, a $1 million pilot program to provide low cost loans to minority- and women-owned housing sub-contractors throughout New York City. The program is being funded by a revolving line of credit committed by Citibank to the Housing Partnership. The goal of the program is to provide needed capital to businesses that have limited or no access to credit, and to thereby help them keep the jobs and economic growth generated by housing development within their own communities.
 The Housing Partnership is introducing this program to reach further into communities than its other programs have been able to in the past. Having already supported the city's first group of successful minority builder-developers, the partnership's new program will target smaller sub-contractors and businesses, thus furthering the depth of capital infusion into New York neighborhoods.
 "This is a demonstration program that we hope will be the basis of increased private lending and risk-sharing by government," said Fred Wilpon, Housing Partnership chairman. "We are excited about what may be accomplished as we search for the right investment strategies to translate the enormous entrepreneurial energy of New York's diverse communities into jobs, goods, services, and affordable housing." The commitment of funds by Citibank is the culmination of discussions among the bank, the partnership, and leaders of low income communities throughout New York City, The Minority Contractor Assistance Program will make loans to sub-contractors in amounts ranging from $10,000 to $100,000, which will be paid back at below market rates. Loans will be made primarily to businesses with little or no credit history. "Citibank is committed to working with neighborhood leaders and organizations like the Partnership to develop innovative ways to extend credit where it is most needed," said William R. Rhodes, vice chairman of Citibank. "The Minority Contractor Assistance Program allows us to place funds where they are most needed, while keeping the jobs and economic growth generated by those funds in the neighborhoods where the work is being done."
 In addition to $1 million in capital committed by Citibank for lending, the bank is also providing an initial grant of $25,000 to help cover costs incurred by the Partnership for management and administration of the new program. This money will help cover costs related to community outreach, loan administration, and technical and business development support service required to help borrowers repay their loans and build their businesses.
 The Housing Partnership, together with the city, administer the largest new affordable housing production program in the nation. The partnership coordinates the construction, financing, and sales of about 1,200 homes annually in low income communities across the five boroughs of New York City. To date, various partnership programs have built and sold 8,800 homes in New York City.
 -0- 10/26/93
 /CONTACT: Kathy Wylde of New York City Housing Partnership, 212-493-7431, or Michael Sullivan of Ruder-Finn, 212-715-1513, or Susan Weeks of Citibank, 212-559-0580/


CO: Housing Partnership Development Corp.; Citibank ST: New York IN: FIN SU: PDT

TS-MP -- NY041 -- 6855 10/26/93 11:29 EDT
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Publication:PR Newswire
Date:Oct 26, 1993
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