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NATIONAL COOPERATIVE BANK PLEDGES $250 MILLION FOR LOW-INCOME HOUSING, ANNOUNCES NEW SECURITY AND RETIREMENT HOUSING PROGRAM

 WASHINGTON, April 16 /PRNewswire/ -- The National Cooperative Bank today pledged $250 million to finance affordable housing initiatives across the country over the next five years.
 As part of its housing efforts, NCB also announced the establishment of a new initiative to develop 1,000 units of retirement housing over the next five years, and the sale of the first private-label mortgage security backed by cooperative affordable housing loans.
 NCB President Charles E. Snyder said at a news briefing that more than half of NCB's overall activity will continue to be housing related, and these new initiatives are a continuation of the bank's strategic commitment to housing. NCB has already financed more than 20,000 units of affordable housing nationwide.
 Snyder said: "The problems of our nation's cities are linked to both the dearth and quality of affordable housing available in many urban areas. The gentrification of many central cities has been at the expense of housing for the poor."
 By way of example, Snyder pointed to a recent dedication ceremony of a Single Room of Occupancy Project in the District of Columbia, which according to local experts was either the first or one of the first general-purpose SROs built in the past seven decades in the District of Columbia.
 NCB'S LOW INCOME ACTIVITY
 Total low-income activity for NCB held in portfolio, or serviced for investors, stood at $210 million as of March 31, 1993; $166 million of that was in housing loans, according to NCB data.
 In 1992, NCB and NCB Development Corporation facilitated the rehabilitation and conversion of 5,700 units of multifamily cooperative housing targeted to low and moderate-income families/individuals. Financing was extended to limited equity cooperatives, mutual housing associations, community-owned rental projects and single room occupancy developments.
 PRIVATE LABEL SECURITY BACKED BY AFFORDABLE HOUSING LOANS
 NCB Corporate Vice President in charge of real estate, Grace Huebscher, said: "NCB's mission is to develop a deeper secondary market for mortgages to create affordable housing. This is important," she said, "because the proceeds are funneled back into making more affordable housing loans.
 "In the past, these loans have been less salable in the secondary market," Huebscher added. "Right now, we are in the market with a $30 million pool of affordable loans, $20 million triple A, Standard & Poor rated certificates and approximately $5 million in mezzanine financing that is rated A and triple B as well," she said. "If we are successful in attracting investors to affordable housing mortgages, we will help bring liquidity and fixed-rate financing to that market."
 NCB has also been a pioneer in the creation of mortgage securities backed by mobile home parks owned by senior citizens. In this effort, NCB has focused on Florida and intends to expand to California.
 Since 1986, NCB has sold more than $600 million of underlying mortgages on housing cooperatives to over 50 institutional investors, including major insurance companies. In July 1992, NCB held its first public offering, selling $93 million in AAA-rated mortgage securities backed by metropolitan New York housing cooperative loans. A second pool was sold in February, an $82 million MBS, also backed by metropolitan New York housing cooperatives.
 RETIREMENT HOUSING
 The announcement of the retirement housing program was geared toward seeking good partners in the development business that are interested in retirement housing. This program will be managed by Margaret Cheap, who heads an NCB affiliate, NCB Development Corporation.
 Cheap said the retirement housing initiative would be targeted to moderate- and middle-income families/individuals, as well as both urban and rural locations. An important component of this initiative will be the tangential offering or access to health care, she added.
 PROJECT LAND
 While NCB has financed affordable housing from Seattle to Atlanta, it has developed a reputation in Washington as a leader in the financing of affordable housing. Along with American Security Bank, it is co-lead lender in a low-income housing initiative known as Project LEND, a consortium of banks committed to developing and supporting affordable housing in the Washington area. In the past six months, Project LEND has dedicated two "Single Room Occupancy" buildings in the District and is in the developmental phase with several others.
 The National Housing Conference, a national group representing a broad range of providers, advocates and policy officials, has just honored Project LEND for its commitment to low-income housing with its 1993 annual award.
 In the affordable housing arena, NCB has worked with a broad range of partners, including a new cooperative venture with the U.S. Farmers Home Administration (FmHA) to develop rural housing. Locally, NCB has worked with LISC (Local Initiative Support Corporation) and SOME (So Others May Eat). National partners include: Housing Assistance Council of Washington; Neighborhood Housing Services of America, Oakland, Calif.; and Low-Income Housing Fund, San Francisco.
 COOPERATIVE HOUSING MODEL FOR AFFORDABLE HOUSING
 Snyder said the cooperative model has been successful in the development of affordable multifamily housing because it prevents displacement of tenants by providing them the opportunity to buy their units. It also provides a flexible financing structure that is ideal for community-based housing, to accommodate the multiple partners that are typically involved.
 National housing policy has been moving in a direction toward empowering local communities to solve their housing problems in the way they think is best. Cooperative housing has proven to be successful in addressing affordable housing problems. For example, in the District of Columbia, over the past decade, the overwhelming majority of community- based housing development targeted to low income has been cooperatively owned, according to local housing providers.
 NCB, with assets in excess of $522 million and $105 million in equity, is a leading provider of financial services to cooperative enterprises in the United States. NCB and its subsidiaries provide mortgage banking, commercial lending, capital markets and depository services to cooperative enterprises. Headquartered in Washington, NCB has regional offices in Anchorage, Alaska; Minneapolis; and New York.
 -0- 4/16/93
 /CONTACT: Jane DeMarines, 202-336-7651, or Louise Grant, 202-336-7652, both of National Cooperative Bank/


CO: National Cooperative Bank ST: District of Columbia IN: FIN SU:

KD-TW -- DC018 -- 6786 04/16/93 13:07 EDT
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Date:Apr 16, 1993
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