CLEVELAND (August 29, 2005) - Charter One Bank today announced it is launching the ‘Charter One Housing Bank,' an innovative community development initiative to increase the availability of affordable housing in Ohio and throughout the Midwest region.
The ‘Charter One Housing Bank' will make available $250 million in low interest loans to non-profit 501(c)3 housing developers seeking to create affordable housing.
“The ‘Charter One Housing Bank' program was launched to address the state's affordable housing needs,” said Ned Handy, president and CEO of Charter One Bank, Ohio. “We are pleased to provide the tools necessary to bridge financing gaps of local developers looking to provide affordable housing in the communities we serve.”
“The Charter One Housing Bank is a welcome addition to the financing tools that we need to produce quality homes at an affordable price. Charter One has stepped forward with a below market loan product that is making our job as a mission-based housing developer much easier," said Cleveland Housing Network's Executive Director Rob Curry. “Every large city in America struggles with how to develop quality homes that are affordable to those who need it most. Through the Housing Bank, Charter One has become part of the solution to our community's need for affordable housing.”
Loans will be available to non-profit developers at the fixed interest rate of 3% for three years with 30-year amortization. For the remainder of the term, the interest rate will be fixed at prime rate with a 6% lifetime cap. A minimum of 51% of any development must be reserved for affordable housing.
“Cleveland is committed to making your dream of home ownership become a reality through a wide range of affordable housing products that include incentives such as tax abatement and second mortgage assistance programs,” said Mayor Jane Campbell.
Today's announced Housing Bank solidifies Charter One's commitment to prospective homebuyers and the City of Cleveland.
“For years, we have been working to bolster affordable living options and improve the quality of life for Cleveland residents,” said Cleveland City Council President Frank Jackson. “We applaud Charter One Bank for launching its housing bank initiative that will help to create additional affordable housing throughout Cleveland and northeast Ohio, contributing to neighborhood stability and encouraging other public and private investment in these communities.”
Another component of the initiative is the ‘Charter One Housing Heroes Award' program, which will annually recognize one non-profit developer who has completed an affordable housing project in the designated timeframe. The winner will receive a $50,000 grant and must allocate $10,000 of the award for a neighborhood-based initiative.
“The ‘Charter One Housing Heroes Award' is an incentive for developers to go above and beyond what is expected,” said Handy. “We want to recognize those projects that demonstrate innovative solutions, effective use of resources, leadership in creating affordable housing, and strong fiscal responsibility. We want to reward those developers who really make a difference in our neighborhoods.”
About Charter One Bank, N.A.
Charter One Bank, N.A., is a $36 billion bank operating in Illinois, Indiana, Michigan and Ohio. It has more than 490 branches and 830 ATMs. Charter One is a subsidiary of Citizens Financial Group, Inc., a $148 billion commercial bank holding company headquartered in Providence, R.I. Citizens has more than 1,600 branches, approximately 3,100 ATMs and more than 27,000 employees in a 13-state retail branch network and non-branch offices in more than 30 states. Citizens is the eighth-largest commercial banking company in the United States ranked by deposits. Citizens is owned by RBS (The Royal Bank of Scotland Group plc).
Directions:
From downtown Cleveland, travel east on Euclid Avenue. Turn left on East 55th Street. Turn right on Hough Avenue. Turn left on East 65th Street. Belvidere Road is the first road on the left. Street parking is available on East 65th Street and Hough Avenue.