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JOHNSTOWN, PITTSBURGH NATIONAL CREATE PROGRAM TO FINANCE PURCHASE, RENOVATION OF SINGLE-FAMILY HOUSING

 JOHNSTOWN, PITTSBURGH NATIONAL CREATE PROGRAM
 TO FINANCE PURCHASE, RENOVATION OF SINGLE-FAMILY HOUSING
 JOHNSTOWN, Pa., June 26 /PRNewswire/ -- The Johnstown Department of Community & Economic Development (DCED) and Pittsburgh National Bank, a PNC bank, today announced a pilot program that will provide $1 million to enable low- to moderate-income residents to acquire and rehabilitate housing in city neighborhoods.
 The City of Johnstown First Time Homebuyer and Rehabilitation Loan Program commits a total of $200,000 by DCED and $800,000 by Pittsburgh National to finance first-time home purchases for eligible residents. The Pittsburgh National mortgages will carry a below-market fixed interest rate and DCED financing will be interest-free. Payment of the DCED principal will be deferred unless the property is sold and will be forgiven gradually over the first seven years of the loan.
 "The City of Johnstown First Time Homebuyer and Rehabilitation Loan Program serves two critically important objectives," said Fred R. Moyer, vice president and regional manager of Pittsburgh National's Cambria County Region. "In addition to helping low- and moderate-income residents achieve home ownership, properties currently in violation of city housing codes will be brought up to standard, enhancing their value along with the property values of surrounding dwellings. In the end, everyone wins, including the current residents of our neighborhoods.
 "Ultimately," Moyer added, "we hope to create a program that can be continued annually in Johnstown and expanded to other communities in the area. Pittsburgh National is an active proponent of neighborhood renewal in all of our communities and we are pleased to be working for the betterment of Johnstown and the Cambria County region."
 Under the program, Pittsburgh National will finance 80 percent of the lesser of the total cost of acquiring and rehabilitating the property or its appraised value. The bank will charge a fixed interest rate 1 percent below the market rate, for a term of up to 30 years. For example, a mortgage written under the program today would be at a 7-5/8 percent rate, 1 percent below the current market rate of 8-5/8 percent. Pittsburgh National also will charge an origination fee of 1 percent of the bank's mortgage amount.
 The eligible homebuyer must contribute the downpayment, the loan origination fee and other closing costs, none of which can be financed.
 DCED will provide the difference between the total cost and Pittsburgh National's loan amount, up to $15,000. Homebuyers who continue to occupy their new homes will receive prorated forgiveness of the DCED portion of the mortgage during the first seven years, and will have it erased totally after seven years.
 DCED also will screen buyers, evaluate properties, and review, select, monitor and approve payments to remodeling contractors participating in the program.
 Only single-family dwellings within the city limits are eligible for financing.
 To qualify, a borrower must be a first-time homebuyer with annual income of $17,400 or less for a one-person household, up to $32,850 for households of eight or more people, with household eligibility calculated on a sliding income scale.
 Program funds can be used to correct any existing building code violations and for FHA Title 1 eligible improvements, which include basic needs such as renovations to a kitchen or bathroom or other significant enhancements to the property.
 Additional information on the City of Johnstown First Time Homebuyer and Rehabilitation Loan Program can be obtained by phoning Ronald Andrews of DCED at 814-533-2031.
 Pittsburgh National Bank is a PNC (NYSE: PNC) bank. PNC Financial Corp, headquartered in Pittsburgh, is the nation's 14th-largest bank holding company, with assets of $43.8 billion. It operates approximately 500 community banking offices in Pennsylvania, Kentucky, Ohio, Indiana and Delaware and conducts business through additional offices in 16 states.
 PNC's principal banking affiliates include: Pittsburgh National Bank, Pittsburgh; Provident National Bank, Philadelphia; Citizens Fidelity Bank, Louisville, Ky.; Central Trust, Cincinnati; Bank of Delaware, Wilmington, Del.; Northeastern Bank, Scranton, Pa.; Marine Bank, Erie, Pa.; PNC National Bank, Wilmington, Del.; Hershey Bank, Hershey, Pa.; and The First Bank and Trust Company, Mechanicsburg, Pa.
 -0- 6/26/92
 /CONTACT: Jonathan Williams of Pittsburgh National Bank, 412-762-4550/
 (PNC) CO: Johnstown Department of Community & Economic Development;
 Pittsburgh National Bank ST: Pennsylvania IN: FIN SU:


CD -- PG010 -- 4246 06/26/92 13:30 EDT
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Date:Jun 26, 1992
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