Creating Workable Housing Solutions for Families and Communities

2007 Report to the Community

O P E N I N G DOO R S T O A F F O R DA B L E H O U S I N G

Benjamin BarnesCity of Stamford

Bruce BeinfieldBeinfield Architecture

Ellen BromleyCity of Stamford

Jessica FoggThe Spinnaker Companies

Clayton FowlerThe Spinnaker Companies

Robin M. GallagherWebster Bank

*Reyno Giallongo, Jr.First County Bank

*Charles F. HowellPatriot National Bank

Pobie Johnston

*John KlineUnion Savings Bankof Danbury

*Joseph McGeeThe Business Council ofFairfield County

E. Phillip McKainCTE, Inc.

Bank of America

Bank of New York

Barksdale Family Fund

Citigroup Foundation

Patricia Dolyak

Charles & Judy Eaton

Fairfield CountyCommunity Foundation

Federal Home LoanBank of Boston

First CongregationalChurch of Greenwich

First County Bank

Housing PartnershipNetwork

Northeast Utilities

Patriot National Bank

Robert Pfeiffer

Real Estate FinancialREFA-CT

RGM FinancialMarketing, Inc

Pat OrmsbyOffice Manager

Myriam Mena PolkLoan Officer

Duane FelixLoan Officer

Delila ForehandLoan Officer

Kevin PorterAssistant Directorof Lending

Sound Federal Savings& Loan

The Goodnow Fund

The Charlotte & JohnSuhler Fund

Union Savings Bank

United Way of WesternConnecticut

Wachovia Foundation

GOVERNMENTState of Connecticut,Department of EconomicDevelopment

In back, from left to right:

Mike DreibelbisResearch Assistant

Melvina PetersHomebuyer EducationCoordinator

Mary Alice DinhoHomeownershipCounselor

Deborah MackenzieProgram Coordinator,Danbury Office

Winifred ThomasClosing Coordinator

BOARD OF DIRECTORS MAJOR CONTRIBUTORS

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Seated, from left to right:

Roxana UbillusHomeownershipCounselor

Elyse PittsDirector of Lending

Joan CartyPresident and CEO

Tami StraussKnowledgeDevelopment Officer

Betsy McGroartyDirector of HomebuyerPrograms

Marjan MurrayPeople’s Bank

Ken OlsonRetired, Cytec Industries

Jack PenfieldInterfaith Council

Robert E. PfeifferGE Real Estate

*Donna M. RameySavings Bank of Danbury

*Lisa A. SandersBank of America

Al ShehadiNational Trust CommunityInvestment Fund

Richard E. TaberFirst County Bank

Ellen TowerCitibank F.S.B.

Kathleen WalshStamford Partnership

Seymour WeinsteinAttorney-At-Law

*Executive Board

Thomas D. Dorsey of Northeast Utilitiespresents Joan Carty with $500,000 toestablish HDF’s Workforce HousingDown Payment Fund

HDF STAFF

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Dear Friend,The theme of this year’s Report to the Community is “Opening Doors to Affordable Housing”.We chose this theme because it is such an appropriate image for our work. HDF helps families andcommunities open the door to better housing opportunities. We also open doors for our broad arrayof partners: banks, developers, governmental entities, not-for-profit agencies and housing authoritiesby linking together the resources needed to unlock housing opportunities. Through our strategiclending products, we use our most flexible resources to unlock the deeper layer of more restrictivefinancing, thus making the system work more efficiently from every perspective.

We take this opportunity to measure our expanding impact and geography.

● Expanded our service area to include all of New Haven County and parts of Litchfield County.

● Financed 67 residential units through our Multi-Family Lending Program in Norwalk,Bridgeport and New Haven.

● Assisted 151 households to homeownership through our First Time Homebuyers Program, a 56%increase over the previous fiscal year, bringing our total number of first-time homebuyers to 608.

● Identified, qualified and assembled financing for 46 first time buyers of Below Market Rate units,part of larger market rate developments, on behalf of five developer clients.

● Extended and increased the SmartMove Loan Fund to $25.5 million, almost triple the startingpoint of $9 million in 2004.

●Made a smooth transition from our Board Chair, Reyno Giallongo, of First County Bank to hissuccessor, Donna Ramey, of the Savings Bank of Danbury.

● Provided expert testimony on inclusionary zoning before the Norwalk Planning Committee,helping the City to adopt a regulation that will lead to many more affordable units. HDF is alsocollaborating with Norwalk to implement its Norwalk Homeownership Assistance Program.

● Convened symposia in Danbury on Inclusionary Zoning, attracting over 150 officials fromthroughout northern Fairfield County and another to address Predatory Lending in partnershipwith Fairfield University’s Center for Faith and Public Life. Both events featured national,regional and local experts. In conjunction with HDF’s First Time Homebuyer program, wealso held two post-purchase seminars to help recent HDF buyers protect and maintain theirinvestments in their homes.

● Underwent the high-quality, efficient, and rigorous CARS™ analysis this year, receiving ahigh rating. The CARS™ CDFI Assessment and Rating System is a comprehensive, third-partyanalysis of community development financial institutions that aids investors and donors intheir decision-making.

We look forward to another successful year at HDF, opening doors to affordable housing andpositively impacting the families and communities we serve.

Very truly yours,

Donna RameyBoard Chair

Joan CartyExecutive Director

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Multi-Family Lending Program – To encourage developmentof for-sale and rental units, HDF provides multi-family homebuyers,nonprofit and private developers of affordable, senior and specialneeds units with a variety of finance options to encourage thedevelopment of for-sale and rental units. We provide acquisi-tion/construction, pre-development, bridge and permanent firstmortgage financing at favorable interest rates – one of the only localsources of 30-year fixed rate mortgages for these purposes.

First Time Homebuyers Program – HDF provides educationand counseling about the home purchase process and then providesdown payment and closing cost assistance to qualified buyers, while

helping to put together the full financing package through bank part-ners who offer traditional fixed-rate mortgages. HDF is a certifiedHUD counselor and lender.

SmartMove Homeownership Program – HDF providesqualified first time buyers with low- interest second mortgages for upto 20 percent of the purchase price of the home – helping to close theaffordability gap.

Below Market Rate (BMR) Program – HDF works withdevelopers who have committed to offering a percentage of new orrehabbed market rate units to first time homebuyers at below market

Greater Danbury:� Housing Resource Center, a collaboration of HDF

and the United Way of Western Connecticut, enjoyed2nd year of operation.

� Through the Housing Resource Center, assisted 45households to homeownership in northern FairfieldCounty – an increase of 200% over FY 2006.

� Through HDF’s BMR Program, placed 12 buyersat The Renaissance in Danbury, by GRC PropertyInvestment & Development.

� Convened Housing Symposium where more than150 northern Fairfield County officials discussedinclusionary zoning and other affordable housing issues.

� Held Post-PurchaseSeminar atDanbury PublicLibrary for recenthomebuyers, partof HDF’s First TimeHomebuyersProgram.

Stamford:� Assisted 43 households

to homeownership–an increase of 72%over FY 2006.

� Launched the HOPE VIHomeownership Programto assist Stamford publichousing residents tobecome homeowners.

� Through HDF’s Below Market Rate Program (BMR), placed 7homebuyers at Adams Mill River House by Seth Weinstein andPaxton Kinol; held lottery at City Hall to break 7-way tie for 2 units.

� Placed 6 BMR homebuyers at the Village at River’s Edgeby RMS Construction.

� Placed 15 buyers at Southwood Square Townhomes;lottery held to break two-way tie for final unit.

� Facilitated 3 Shared Appreciation Mortgage (SAM) Loans withfee-in-lieu funds from the City of Stamford.

� Presented program at Women Talking HomeownershipSeminar in Stamford.

� Convened Post-Purchase Seminar in Stamford for recenthomebuyers, part of HDF’s First Time Homebuyers Program.

Norwalk:� Assisted 15 households to homeownership–

an increase of 14% over FY 2006.

� Placed 6 buyers at The Maritime inSouth Norwalk by Spinnaker Real EstatePartners; lottery held to break a 2-familytie for the final 2-bedroom unit and a3-way tie for the final 1-bedroom unit.

� Initiated the Norwalk HomeownershipAssistance Program in conjunction withthe Norwalk RedevelopmentAgency/Northe Walke.

� Under the Multi-Family Program, financedthe completion of 130 Main Street and initiated effort toidentify 5 buyers for the affordable units at the property.(See profile on page 6).

Greater Bridgeport:� Assisted 40 households to

homeownership in GreaterBridgeport – on par withFY 2006.

� Financed the rehabilitationof 36 affordable rentalunits at Washington Park,Bridgeport (see profileon page 6)

� Convened PredatoryLending Luncheon atFairfield University incooperation with theUniversity’s Center for Faith and Public Life,featuring national, regional and local experts.

� Celebrated HDF’s 500th Homebuyer, with thepurchase of a single-family home in Fairfield inconjunction with the Town of Fairfield.

Housing Development Fund Programs

F ISCAL YEAR 2007 AT A GLANCE

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rates. To save marketing costs on these affordable units, HDF helps toidentify and screen qualified buyers and put together financing packages.

Homeward Bound Program – HDF is making believers of manywho did not think that residents of public housing represent candidatesfor homeownership. Through counseling, advocacy and financial assis-tance, we have helped many public housing tenants to achieve theAmerican Dream, freeing up their rental units for other families onhousing authority waiting lists.

Technical Assistance Program – HDF works with municipalitiesto help them develop and administer affordable housing initiatives.

Greater New Haven and Waterbury:� Entered the Greater

New Haven market,assisting 2 householdsto homeownership andforging a relationshipwith NeighborhoodHousing Services ofNew Haven.

� Under the Multi-FamilyProgram, financed the construction of Santa FeCommons, 12 condo townhouse units in New Haven.(See profile on page 6).

Advocacy – HDF convenes symposia and other educational forumsas part of its initiative to influence land use and lending practices thatencourage and expand affordable housing and homeownership. Thesymposia are designed to focus on key trends and issues related tothese critical needs – including inclusionary zoning, transit-orienteddevelopment, predatory lending and workforce housing. HDF gener-ally collaborates in these efforts with local, regional and nationalorganizations and experts. Advocacy partners have included theFederal Reserve Bank of New York, the National CommunityReinvestment Coalition, the Home Loan Bank of Boston, FairfieldUniversity’s Center for Faith and Public Life, and United Ways in thecommunities served by HDF.

Milford-Ansonia-Seymour Region:� Expanded outreach into this region.

� Assisted 6 households to homeownership.

MULTI - FAMILY BORROWER PROFILES

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Lockwood TerraceDeveloper: 130 Main Street, LLC

Location: 130 Main Street, Norwalk

Total Units: 19 (9 historic renovations, 10 new construction) Condominiums

Affordable Units: 5 Condominiums

HDF Financing Program: $5.2 million low-interest construction, layered with $250,000 from theU.S. Department of Housing & Urban Development, $175,000 in tax credits from the Conn.Historical Commission, and $150,000 from the Norwalk Redevelopment Agency.

Other HDF Programs: Below Market Rate Program to identify, qualify and help providefinancing for buyers of affordable units.

“We are grateful to HDF, not only for making our development a reality through financing,but also for helping us put together a true public/private partnership that is saving some ofNorwalk’s remaining historical structures, while creating more affordable units. It was a veryproud day when the Secretary of HUD, Rep. Christopher Shays and local officials selected theproject as a model of urban redevelopment and toured the completed units.”

— Simona Tudor, Co-Developer

Santa Fe CommonsDeveloper: Alberto Alvarez

Location: Eastern Street, New Haven

Total Units: 12 Condominiums

Affordable Units: 4 Condominiums

HDF Financing Program: Multi-Family Loan of $2,300,000 to cover construction and soft costs,after the traditional lender dropped out.

“HDF understands that small developers can make a solid contribution to both market rateand affordable housing when provided with a financing package that leads to a project’ssuccess. It truly helped that HDF’s financing package covered both hard and soft costs.”

— Alberto Alvarez, Developer

“We needed to refinance our original first mortgage from a private lender and acquire addi-tional funds to complete renovations to the units – without jeopardizing the favorable publicfunding we had in place. HDF was expert in dealing with the complexities of this financingand helped us preserve 36 much-needed affordable units in Bridgeport.”

— Philip J. Dwyer, President & CEO, Central Connecticut Coast YMCA

Washington Park

Developer:Washington Park Revitalization Partnership, LP – A development entity managed bythe Central Connecticut Coast YMCA

Location: Scattered Sites Around Washington Park, Bridgeport

Total Units: 36 Rentals

Affordable Units: 36 Rentals

HDF Financing Program: First mortgage financing of $918,000 from its Multi-Family Loan Fundpooled from 17 consortium banks, layered onto existing subordinate funding from the City ofBridgeport and the Bridgeport Neighborhood Fund, Inc., as well as Low Income Housing TaxCredits through the Connecticut Housing Finance Authority.

F IRST T IME HOMEBUYER PROFILES

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HDF MAKES FUNDING WORK

HDF Blends Transactional Financing with Asset Building forMulti-Family Borrowers and First Time Homebuyers

“Thank you for allowing me to own such a beautiful home, live closer tomy job, and for making my dream of homeownership a reality. To thoseconsidering HDF, just do it! It works.”

— Emily G.

Emily G.Occupation/s: Graphic Designer

Former Housing: Market Rate Rental, Bridgeport

New Home: BMR Unit, Norwalk

HDF Program/s: First Time Homebuyers Program, BMR Program

Financial Assistance Products: SmartMove, Workforce Housing Down Payment Fund

HDF First Mortgage Partner: People’s United Bank

“CL&P supports the very important Workforce Housing Down PaymentProgram because we believe affordable housing is a key factor in building andmaintaining strong communities and driving economic growth, not only inStamford, but across the state. The Connecticut General Assembly made thisprogram possible, enabling us to more easily assist in making affordablehousing available.”

— Raymond P. Necci, President & Chief Operating Officer, Connecticut Light & Power.

Bruce P. and Family (Client Since 2004)Occupation/s: Engineer

Former Housing: Market Rate Rental, Stamford

New Home: BMR Unit, Stamford

HDF Program/s: First Time Homebuyers Program, BMR Program

Financial Assistance Products: SmartMove, Workforce Housing Down Payment Fund,Stamford Housing Authority Loan

HDF First Mortgage Partner: CitiBank

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HDF is very patient, helpful and kind. Theyare very informative about the entire processof owning a home.

– Virginia Ambrosecchia

HDF HEADLINES AND HAPPY HOMEOWNERS

I wanted to thank you for everything you did to help mepurchase my first apartment. It was a privilege to workwith you and I admire your dedication and professionalism.I have learned a lot along the way and this gives me peace ofmind as a new homeowner. I moved into my new apartmentthis past weekend. If you would like to stop by for a cup oftea just give me a call.

Sincerely, Grace Ksiazek

When you owna home, it’ssomething youcan call yourown. At the endof the day, itbelongs to you.– Krystal Taylor

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I just wanted to take a moment to thank you, the Housing Development Fund, and the Homeward Bound program forhelping me achieve the American Dream; owning my own home. It has been over three years since my purchase and a yearago I made the decision to relocate south and placed my home on the market; I have finalized the sale of my home onAugust 28, 2007 and now look forward to planning my relocation. I cannot begin to tell you how helpful your first-timebuyers class was, and how it played such an instrumental part in the decisions I made in my home purchase process.I pray that all your students walk away with the wealth of information that I did. This opportunity has truly been ablessing. Thank you again for all your help.

Sincerely, Tanja Bethea

Ownership is the beginning of taking controlof your life. For me anyways.

– Gregg Mello

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First Time Homebuyers Program by the Numbers

Multi-Family Lending by the Numbers

Source of Revenue by Fiscal Year

Growing contributions will help us “open the door” to assisting2,009 households by 2009, our 20th anniversary.

Loan Summary Total

Number of Loans 42Number of Projects 41Total Units 608Affordable Units 586HDF Flexible Funding Pool $2,000,000HDF Consortium Loan Pool $28,000,000Other Subsidies $9,200,000

HDF BY THE NUMBERS

# of First Time HDF SmartMove HDF Homebuyer Other Total $ First MortgagesHomebuyers Loans Assistance Loans Subsidies Subsidies Leveraged

608 $11,300,000 $3,000,000 $5,400,000 $19,700,000 $91,000,000

Full Financial Statements Available Upon Request.

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TRIBUTE TO REYNO GIALLONGOAfter serving as HDF’s chairman of the board ofdirectors since 2002, Reyno Giallongo, Senior VicePresident of First County Bank, has turned over thegavel to the new chair, Donna Ramey, Executive VicePresident of the Savings Bank of Danbury. Although heis still an active board member as immediate past chair,Rey deserves recognition for his leadership duringthese years of rapid growth and innovation at HDF.

Rey was a founder of HDF and so has been involved with usfor 18 years. Rey initially served as chair of our Multi-FamilyLoan Committee (1989-1994) and joined the HDF Board of

Directors in 1995. He is generous with histime, which he also contributes to anumber of other area nonprofits andbusiness organizations. As chairman ofHDF, he guided the agency through aperiod of unprecedented growth in allareas—programs, staff and loan portfolio.

A strategic thinker, his belief in collabora-tive alliances and strategic partnershipsled to highly productive relationshipswith a number of commercial andnon-profit organizations. During Rey’s

tenure, our programs and services expanded to encompass allaspects of the affordable housing matrix—assistance for firsttime homebuyers, multi-family developers, municipalities andhousing authorities, as well as advocacy. During his tenure,HDF’s multi-family and homebuyer assistance loan poolsgrew from a total of $15 million to $60 million and our assetsdoubled from $13 million to $26 million.

Most of all, Rey’s commitment to HDF’s mission and hisconcern for its clients has beenmotivational to both the boardand the staff. We will always be grateful for his continuingwisdom and experience. He has our deepest thanks forhis leadership.

100 Prospect Street, Suite SP-101, Plaza Level, Stamford, Connecticut 06901

Phone: (203) 969-1830 � Fax: (203) 323-8958

8 West Street, Suite 202-204, Danbury, Connecticut 06810

Phone: (203) 798-6527 � Fax: (203) 798-2142

www.hdf-ct.org

M I S S I O N S T A T E M E N T

The mission of HDF is to facilitate the development of affordable housing, both rentaland homeownership, and to assist households to become owners of affordable homes.HDF accomplishes this by providing low-interest, flexible financing and technical assis-tance to developers; by providing homebuyer assistance financing and homeownershipcounseling to homebuyers; and by working with the private sector, non-profits andgovernment to facilitate the creation of more affordable housing. HDF believes that allhouseholds and families should have the opportunity and access to affordable housing,and that affordable housing and economic diversity are beneficial to communities.

Creating Workable Housing Solutions for Families and Communities

DESIGN: HEH Associates, Inc., Wilton, Connecticut PHOTOGRAPHY: Catherine Halstead (Photos are HDF clients and properties developed/purchased by our clients) COPY: Team PR, Westport, Connecticut