U.S. Representative Jerry Kleczka, Milwaukee Mayor John Norquist, St. Francis Bank, and Fannie Mae announce New $1 million affordable home ownership pilot program for Woodlands Condominium buyers.

Issued by Fannie Mae
April 15, 2002

U.S. Representative Jerry Kleczka, Milwaukee Mayor John Norquist, St. Francis Bank, and Fannie Mae Announce New $1 Million Affordable Homeownership Pilot for Woodlands Condominium Buyers

MILWAUKEE, WI -- For the first time in Milwaukee, a $1 million flexible mortgage pilot has been tailored specifically for a rebounding neighborhood's landmark condominium complex, mostly occupied by renters, to encourage homeownership. U.S. Representative Jerry Kleczka (D-WI) and Milwaukee Mayor John O. Norquist today joined representatives from local housing partners, St. Francis Bank and Fannie Mae (FNM/NYSE), the nation's largest source of financing for home mortgages, to launch the Woodlands Condominiums Mortgage Eligibility Pilot. Also announced, was an employee homeownership assistance program to be offered through Alexian Village, a large retirement complex and workplace for many prospective Woodlands buyers who can link the new mortgage pilot with an employer assisted housing grant.

"For as little as a $900 down payment, hard-working health care workers and others can own a $30,000 home and earn the keys to the American dream of homeownership," said Rep. Kleczka. "Community housing partners came together to create a win-win solution as homeownership also will help to stabilize and encourage further renovation of the Woodlands and the surrounding neighborhood."

"This innovative housing ownership program will help people buy into an affordable neighborhood that's really on the upswing," said Mayor Norquist. "The work of Fannie Mae and Alexian Village complements developments like the new John C. Cudahy Branch of the YMCA, the nearby nature preserve, the new ownership of Northridge Mall, and the creation of the Historic Granville Corporation. This announcement means more progress for a great neighborhood."

In order to expand the pool of prospective buyers, Fannie Mae, St. Francis Bank, Select Milwaukee, and Mortgage Guaranty Insurance Corporation (MGIC) have launched the $1 million Woodlands Condominiums Mortgage Eligibility Pilot. The pilot is available from St. Francis Bank to borrowers who earn up to 100 percent of the area median income ($67,200), and offers flexible credit guidelines and qualifying ratios, and low down payments. The affordable condos are priced in the low- to mid- $30,000s for a three-bedroom unit and will be offered with 15-year fixed rate conventional mortgages that require a 10 percent down payment to help the homeowner build equity faster. A minimum contribution of 3 percent is required from the borrower's own funds, in addition, grants, gifts, and loans from relatives, and forgivable loans from nonprofit groups, government agencies or qualified employer assistance programs are acceptable sources for the remaining down payment funds.

The Woodlands Condominium Complex, formerly known as North Meadows, is the largest condominium complex in the state. It consists of 576 units in 59 buildings on 55 acres of land. Currently, owner occupancy at the Woodlands is 22 percent. Two years ago, the city of Milwaukee Neighborhood Improvement Development Corporation (NIDC), with support from the Milwaukee City Attorney's Office, purchased and renovated 42 units at Woodlands in an effort to increase owner occupancy in the area. The Milwaukee office of the Local Initiatives Support Corporation (LISC) is working with the condominium association to identify financing for infrastructure improvements and ways to enhance and sustain the value of the property for buyers.

In addition, Alexian Village CEO Gary Mohn announced a new partnership between his company and the Woodlands Condominium Association to complement the work of the NIDC by renovating 100 additional units in an effort to increase the overall owner-occupancy of the complex within the next five years. Alexian Village employees also are eligible for a $2,000 forgivable grant to be used toward a down payment on a Woodlands Condominium as part of the company's Employer Assisted Homeownership Program (EAHP).

"The additional renovation will enhance our employer assisted housing program," said Mohn. "The Alexian Brothers and all of our residents, families, and employees are deeply committed to strengthening our surrounding neighborhood and making the far northwest side of Milwaukee an inviting place to live and work."

Select Milwaukee, a homeownership promotion organization, will administer the EAHP and provide the required pre- and post-purchase guidance services to prospective Woodlands buyers. As part of its services, Select Milwaukee also will assist home buyers in obtaining down payment and closing cost assistance grants.

St. Francis Bank will originate and service the mortgages as part of the Woodlands Condominiums Mortgage Eligibility Pilot. MGIC, the nation's leading provider of private mortgage insurance, will provide mortgage insurance under the pilot when it is required. Fannie Mae has waived the standard 60 percent owner-occupancy requirement for the Woodlands and will purchase up to $1 million in eligible mortgages from St. Francis Bank. LISC and Alexian Village are providing a $50,000 loan loss reserve account to further reduce exposure.

"St. Francis Bank is focused on the mission of helping families achieve the dream of homeownership and making a tangible difference in the communities we serve," said James Eckel, executive vice president of St. Francis Bank. "This coordinated partnership permits us to further enhance our commitment to provide mortgages that encourage neighborhood revitalization and increase homeownership opportunities."

"This initiative celebrates important links between homeownership and stable neighborhoods, quality, affordable housing, and employee retention and satisfaction," U.S. Representative Tom Barrett (D-WI) said in a statement. "The collaborative efforts of Fannie Mae, St. Francis Bank, Select Milwaukee, MGIC, and neighborhood residents demonstrate just how successful these types of partnerships can be in revitalizing urban communities." Barrett, who in 1998 led efforts that brought the first statewide Fannie Mae office to Wisconsin, added: "When an employer, such as Alexian Village, plays a major role in helping to provide homeownership opportunities and benefits to their workers, not to mention renovation of the condos, it is a unique story."

"Helping hard-working individuals and families achieve homeownership benefits the entire community," said Dru Pasley, director of Fannie Mae's Wisconsin Partnership Office. "This initiative will help revitalize the neighborhood, which in turn, will increase property values and promote economic development. Fannie Mae is pleased to participate in this $1 million mortgage pilot to support the rebirth of the Woodlands."

Fannie Mae's participation in the Woodlands Condominiums Mortgage Eligibility Pilot is part of the company's five-year, $7 billion investment plan for Wisconsin to help finance affordable housing for 77,000 families statewide. This investment is part of Fannie Mae's $2 trillion American Dream CommitmentSM to help increase homeownership rates and serve 18 million targeted American families by the end of the decade.

For more information on the Woodlands Condominiums Mortgage Eligibility Pilot, prospective home buyers may call St. Francis Bank at (414) 486-7012. For more information on the Alexian Village EAHP, please call Gary Mohn at (414) 357-5105.



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's largest source of financing for home mortgages. Fannie Mae is working to shrink the nation's "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 more than $3.6 trillion of mortgage financing for nearly 43 million families. The American Dream Commitment is a service mark of Fannie Mae. Unauthorized use of this mark is prohibited. Style Usage: Fannie Mae's Board of Directors has authorized the company to operate as "Fannie Mae," and the company's 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."

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