Jamie Gorelick, Fannie Mae Vice Chair, Teams With Lenders for an Urban Redevelopment Initiative

Press Release

4/24/03

The City of Philadelphia, Universal Companies, Fannie Mae, and Lender Partners Announce Initiative to Revitalize One of Philadelphia's Most Distressed and Historic Neighborhoods

PHILADELPHIA, PA - In a vacant lot on South Broad Street, Mayor John F. Street joined state and local officials, Universal Companies Founder and Chairman Kenneth Gamble, Fannie Mae Vice Chair Jamie S. Gorelick, and several key lender partners today to launch a significant urban redevelopment initiative in South Philadelphia designed to complement the city's Neighborhood Transformation Initiative (NTI). NTI is a bold and historic five-year action plan to preserve and rebuild Philadelphia neighborhoods through blight elimination, improved city services, and residential and commercial redevelopment.

Universal Companies plans to build or renovate nearly 400 homes in South Philadelphia over the next three to four years. The revitalization of this community is part of an ambitious plan by the city of Philadelphia to restore the vibrancy of the 5th largest U.S. city by attracting workers and families back to downtown, as well as retaining existing residents and many of the young people who attend the city's colleges and universities.

Universal Companies, founded by legendary music producer Kenneth Gamble, is leading the nearly $100 million effort. Since 1993, Universal Companies has helped strengthen the South Philadelphia neighborhood, where Gamble was raised, by providing educational resources, economic development, and affordable housing for the community.

"This is a great day for the city and South Philadelphia. This initiative represents several milestones and a new beginning in turning our community around," said Gamble. "Homeownership and affordable housing are fundamental for thriving neighborhoods and this partnership with the city, Fannie Mae, The Reinvestment Fund, and Citizens Bank will not only help restore blighted neighborhoods in South Philadelphia, but serve as a model for revitalization for communities throughout Philadelphia and across the nation."

The initiative will enable Universal Companies to leverage investments and financing for the construction of new and renovated homes and apartments. The Reinvestment Fund (TRF), a Philadelphia-based community development financial institution that provides capital for low- and moderate-income developments, through its subsidiary The Collaborative Lending Initiative (CLI), will provide development financing for this redevelopment effort. Fannie Mae, through its American Communities FundTM (ACF®), and Citizens Bank each have committed to purchase a one-third participation interest in the loans originated by CLI for the first phase of the redevelopment, which will result in the renovation or new construction of approximately 160 homes. As the initiative moves forward to subsequent phases, further investments are anticipated that would result in the completion of additional housing units, bringing the total to 400 affordable housing units for South Philadelphia. In addition to its commitment for the participation interest in the current phase, Fannie Mae anticipates that it will be able to make additional investments under this initiative, particularly the purchase of eligible mortgage loans made to home buyers, that will result in an aggregate investment of nearly $100 million. Fannie Mae (FNM/NYSE) is the nation's largest source of financing for home mortgages.

"NTI has provided us with a unique opportunity to rethink our neighborhoods and develop well thought out solutions to 50 years of decay and neglect; it was intended to be a catalyst, to help foster change, to spur development, to forge much needed partnerships with great organizations such as Universal Companies," said Mayor John F. Street. "Kenny and I have been talking about this Philadelphia renaissance for more than two decades. I am thrilled that our strategy to preserve and rebuild Philadelphia's neighborhoods as thriving communities with clean and secure streets, a world-class education system, vibrant retail, recreational and cultural outlets, and quality housing is becoming a bigger and bigger reality every day. I am grateful for the invaluable support we are once again receiving from Citizens Bank, TRF, and Fannie Mae. Today's announcement marks yet another opportunity for government, citizens and the private sector to work together, restoring civic pride and building community spirit for all Philadelphians." The city of Philadelphia, through the Philadelphia Redevelopment Authority, will make available $3 million in an NTI subsidy loan for the acquisition of properties to facilitate development.

The neighborhood targeted by Universal Companies encompasses an area west of Broad Street and south of South Street. Once a lively and diverse community adjacent to Center City , this section of South Philadelphia fell victim to a decline in population and suburban flight following the 1960's. While many residents and businesses remained committed to the community, more and more homes and storefronts became vacant eyesores, leading to increased crime and neglect.

See original source pertaining to Jamie Gorelick and the "urban redevelopment project", on the link provided.