Housing Partnership Gets $2M Below-Market Interest Rate Loan

By Anuradha Kher, Online News EditorNew York–The Housing Partnership Development Corp., a New York-based nonprofit producer of affordable housing, has obtained a $2 million below-market interest rate line of credit from Carver Federal Savings Bank. The line of credit is provided to the Housing Partnership’s affiliate, Community Partnership Development Corp. (CPDC), a not-for-profit lender that supports the financing needs of affordable housing developers in New York City.Beth Berns, CFO of the Housing Partnership, says, “The Housing Partnership is thrilled to have Carver Federal Savings make this commitment of funds to CPDC. This greatly increases the level of funding available to small developers of affordable workforce homeownership housing at a time when the cost of land, materials and environmental clean-up is increasing so dramatically.”The below-market interest rate line of credit from Carver Federal Savings and CPDC loans are made possible through New Market Tax Credit federal requirements. The federal program promotes investment in low-income communities by allowing participants like Carver Federal Savings Bank to make qualified equity investments in CPDC. CPDC loans the funds to qualified active low-income community businesses that focus on assisting low-income communities.Deborah C. Wright, chairman and CEO of Carver Federal Savings Bank, says, “The need for pre-development, patient capital and land acquisition loans to affordable housing developers, and in particular, small minority and women-owned developers, remains a critical priority for those who believe in the participation of local people in revitalization of their communities.”