Archives of the Mayor's Press Office

FOR IMMEDIATE RELEASE
Date: Wednesday, May 26, 1999

Release #187 -99

Contact: Matthew Higgins, Mayor's Press Office (212) 788-2958
Marilyn Mode, DCPI (212) 374-6700
Rick Lepowski, HPD (212) 863-7948


MAYOR GIULIANI ANNOUNCES NEW "NO-DOWNPAYMENT" PROGRAM TO ENCOURAGE POLICE OFFICERS TO BUY HOMES WITHIN THE FIVE BOROUGHS

'NYPD Home' Will Offer 100 Percent Financing, Reduced Closing Costs

Mayor Rudolph W. Giuliani announced today an innovative new program to increase the number of City residents in the NYPD by making it possible for officers to purchase homes anywhere within the five boroughs with no money down. The NYPD Home program will offer uniformed members of the NYPD 100 percent financing and reduced closing costs for the purchase of condos, coops and one, two and three family homes within the five boroughs - at no cost to taxpayers.

To be eligible to participate in NYPD Home, a police officer would have to occupy the home purchased as a primary residence. All purchasers have to take a short-term credit counseling course and, where applicable, a short-term landlord-tenant training course. Police officers with poor credit will be eligible to participate in NYPD Home after successfully completing an 18 or 24 month credit-counseling course, offered at no cost to the buyer. No City subsidy is required for the NYPD Home program.

Police Commissioner Howard Safir, Housing Commissioner Richard T. Roberts, and representatives from participating lending institutions joined the Mayor in the announcement.

"The NYPD Home program will provide a valuable incentive to police officers to live within the five boroughs and at the same time, encourage Officers to make a significant investment in the communities they serve," the Mayor said. "NYPD Home will make it easier to realize the American dream and being a police officer will become a more appealing profession to young people. As a result of the NYPD Home program, many New Yorkers will come to view the officer on the beat not as a stranger, but as a neighbor."

- over - Police Commissioner Howard Safir said, "This new homeownership program serves as a powerful tool to encourage more police officers to buy homes in New York City - particularly new officers and recruits who might not have the means to make a down payment and pay the entire closing costs."

Housing Preservation and Development Commissioner Richard Roberts said, "In addition to offering new homeownership opportunities to New York's Finest, this program will have a tremendous stabilizing impact on the city's neighborhoods, some of which have the lowest homeownership rates in the country."

Naomi Bayer, Director of Fannie Mae's New York City Partnership Office, said, "Fannie Mae is thrilled to be a partner in an initiative that will provide a real benefit for police officers and the New York City neighborhoods in which they live."

The NYPD Home program is the latest in a series of wide-ranging initiatives the City announced earlier this year to increase the number of City residents in the Police Department. The extensive recruitment drive includes a multi-million dollar citywide ad campaign, recruitment stations in libraries, police stations and recreational centers in all five boroughs, residency credits on promotional examinations, and the establishment of a career track for specialized units. The Department currently awards City residents a five-point credit on entrance examinations. Approximately 60 percent of New York City police officers are City residents.

NYPD Home is made possible through the participation of Fannie Mae, local lending institutions, and the New York City Residential Mortgage Insurance Corporation (REMIC), a subsidiary of the New York City Housing Development Corporation (HDC). REMIC is providing low cost mortgage insurance. Mortgages provided by private participating lenders are then purchased by Fannie Mae, the nation's largest source of financing for home mortgages. In addition to providing 100 percent financing, the participating lenders provide up to $3,500 in closing costs for each loan. Participating lenders include Chase Manhattan Bank, EAB, and Republic National Bank.

NYPD Home is expected to begin accepting applications by the end of this summer.

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