PHILADELPHIA, PA -- The University of Pennsylvania (Penn) and the University of the Sciences of Philadelphia today joined Fannie Mae (FNM/NYSE), the nation largest source of financing for home mortgages, and the Trammell Crow Company to announce an innovative new partnership to preserve and develop moderate-cost rental housing opportunities for the entire University City community. "The Partnership for Quality Housing Choices in University City" will focus on improving management and maintenance of rental units. It builds upon the success of Penn "Community Housing Program," which works to increase homeownership opportunities in University City. First Union National Bank will provide up to $30 million in financing for the partnership.
The Partnership will provide a national model for stabilizing communities around large institutions, especially those communities where rental housing dominates the market. Penn and Fannie Mae launched the effort through an investment of $5 million each, for an initiative with a 7- to 10-year horizon. Fannie Mae funded its investment through its American Communities Fund (ACF), an equity and debt fund that is committed to investing in high-impact redevelopment initiatives that will serve as a catalyst for neighborhood housing and community revitalization. ACF was created in 1996 to provide capital to facilitate hard-to-finance housing and community development efforts. Additional investments in the partnership include $1.5 million from other partners and up to $30 million in mortgage financing from First Union National Bank. Funds from the partners will be used for investments in qualified rental properties. Existing multifamily buildings will be purchased, rehabilitated, and made available for rent. By providing better managed and maintained rental units, new and rehabbed rental housing will be attractive to young families, singles, faculty, and students anyone attracted to the vitality of an urban, university community.
"The University of Pennsylvania has been a significant force in shaping demand for rental housing in its neighborhoods," said Judith Rodin, president of the University of Pennsylvania. "Now, in partnership with nationally prominent housing finance and service providers, Fannie Mae and the Trammell Crow Company, Penn, along with University of the Sciences, is positioned to strategically manage this demand for the benefit of the broader community.
"The preservation and development of moderate-cost rental housing opportunities throughout our neighborhoods will perpetuate opportunity for the entire communitytudents, seniors, young families, and the many employees of our local institutionso enjoy the increasing quality of life in our University City neighborhoods, assuring its economic diversity for decades to come," said Rodin.
"We at Fannie Mae recognize that not everyone is ready for homeownership, and we want to make sure that those who are not ready have good, decent, and affordable housing options," said Jamie Gorelick, vice chair of Fannie Mae. "The goal of this unique partnership is to stabilize and develop the neighborhoods in University City and to meet the housing needs of all residents in the neighborhood."
The partnership is an integral component of Penn broad-based effort to work with neighborhood groups, community organizations, and area institutions to stimulate neighborhood revitalization through public education initiatives, commercial and economic development investments, neighborhood-based services, and community housing programs.
"This is our opportunity to participate with the University of Pennsylvania, the Trammell Crow Company, Fannie Mae, and First Union National Bank in a joint partnership that will improve the quality of housing in the University City area," said Philip P. Gerbino, president of the University of the Sciences. "This is something that has been needed for a long time. We are happy that these institutions and organizations have come together to take the lead in this important effort."
A critical component of the rental partnership success is high quality management services, which will be provided by the Trammell Crow Company, one of the nation largest rental property managers.
"Trammell Crow Company takes great pride in playing an integral role in this strategic alliance with the University of Pennsylvania, Fannie Mae, University of the Sciences, and First Union National Bank," said J. McDonald Williams, chairman of the Trammell Crow Company. "This is an exciting opportunity for our organization to further expand our reach and commitment into the University City community in an effort to improve the quality of life and standard of living for the many people who call University City home."
First Union has made a commitment to provide the partnership with up to $30 million in mortgage financing, which is available to qualified investors.
"This mortgage financing epitomizes the type of community impact that First Union Community Development Lending Group can make," said Jane Henderson, senior vice president and director of First Union Community Development Group. "This partnership for quality housing is a prototype for future urban revitalization efforts throughout the First Union franchise."
For more information about the Partnership for Quality Rental Housing Choices in University City, please contact Yvonne Haskins at 215-575-1787. For more information on Fannie Mae affordable mortgage products or a list of local lenders, consumers may call Fannie Mae Consumer Resource Center at 1-800-7FANNIE (1-800-732-6643), Monday through Friday, 9:00 a.m. to 5:00 p.m. EST.
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Founded in 1948, Trammell Crow Company is one of the largest diversified commercial real estate services companies in the United States. Through 170 offices in the United States and Canada, Trammell Crow Company is organized to deliver management services, transaction services and development and project management services to both corporate and institutional customers. The company has international service delivery capability in Europe and Asia through its strategic alliance with Savills plc, a leading property services company based in the United Kingdom, and the jointly owned outsourcing company Trammell Crow Savills Limited. Trammell Crow Company is traded on the New York Stock Exchange under the ticker symbol "TCC" and is located on the World Wide Web at http://www.trammellcrow.com.
Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation largest source of financing for home mortgages. Fannie Mae is working to shrink the nation "homeownership gaps" through a $2 trillion "American Dream Commitment" to increase homeownership rates and serve 18 million targeted American families by the end of the decade. Since 1968, Fannie Mae has provided $2.9 trillion of mortgage financing for over 35 million families. More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com.
Style Usage: Fannie Mae Board of Directors has authorized the company to operate as "Fannie Mae," and the company stock is now listed on the NYSE as "Fannie Mae." In order to facilitate clarity and avoid confusion, news organizations are asked to refer to the company exclusively as "Fannie Mae."