A Message from Terry Carr, Senior Advisor of Communications and Congressional Relations:
Ginnie Mae remains a source of strength and stability for the housing industry. This is particularly evident in Ginnie Mae’s Multifamily Mortgage-Backed Securities (MBS) Program where we take great pride in financing projects that help stabilize local economies and bring jobs to communities. One such example can be found in the Bronx, New York, where one of the nation’s highest cost rental markets is undergoing a significant transformation. Ginnie Mae is financing a 35-year loan for Co-Op City, the world’s largest cooperative housing community. Selling this loan in the secondary market through a Ginnie Mae security will save the owner of Co-Op city, the Riverbay Corporation, an estimated $400 million in interest payments.
Large, high-profile transactions such as Co-Op City demonstrate Ginnie Mae’s important role in ensuring that working families have a suitable, affordable place to live. It also illustrates one of the many ways Ginnie Mae partners with the Federal Housing Administration (FHA) to offer support to current and future generations of families living and working across the country. Home to more than 57,000 residents, this development’s $621 million loan refinanced an original mortgage that was designed to preserve affordable housing for thousands of families. It will provide capital for maintenance and renovations, and it will introduce an additional $26 million in critical repairs to the buildings.
Benefiting more than 15,000 households, Co-Op City is a community made up of 35 residential buildings, three shopping centers and a 25-acre educational park. A “city within a city,” Co-Op City also includes a number of schools, diverse recreational facilities, commercial offices and several other amenities that make Co-Op City a place to call home.
Multifamily financing remains essential to the health of our nation’s housing market as the population ages, new multifamily facilities are built and properties need restoration. Ginnie Mae remains steadfast in its commitment to financing multifamily properties ranging from apartment buildings and nursing homes to hospitals and assisted living facilities. We strive to build strong and healthy neighborhoods. With a nearly $76 billion Multifamily portfolio at the end of June 2013, Ginnie Mae’s Multifamily MBS program demonstrates our ongoing commitment to providing affordable housing for all Americans.
Senior Advisor, Communications & Congressional Relations