Governor Rendell Says Families in NE PA to Get $30 Million Towards Down Payment Help;...

Governor Rendell Says Families in NE PA to Get $30 Million Towards Down
Payment Help; Affordable Housing; New Jobs

STEELTON, Pa., June 10 /PRNewswire-USNewswire/ -- Foreclosed homes in Monroe
County; blighted former industrial sites in Wilkes-Barre; and other areas in
northeastern PA will be turned into 230 units of affordable housing with the
award of more than nearly $30 million in federal economic recovery funds,
Governor Edward G. Rendell said today.

The new investment is part of a statewide announcement totaling more than $380
million that the Governor made today at a former school that is being
converted into apartments in Steelton, Dauphin County. He said the statewide
projects will provide jobs for some 3,000 workers, help at least 1,000
families with new home down payment assistance, and find affordable housing
for 5,000 families.

"This is great news for families who have been hit hard by the foreclosure
crisis in Pennsylvania, as the investments we are announcing today will help
provide affordable housing for tens of thousands of Pennsylvanians," said
Governor Rendell. "This is clear evidence that President Obama's stimulus bill
and Congress' efforts to address the impact of this housing emergency are
making a real difference in Pennsylvania.

"It's also a great day for families who need help coming up with a down
payment for a new home. This creative, new program represents the spirit of
partnership and innovation the President challenged us to employ when he
signed the stimulus bill."

Governor Rendell said the Keystone First Program, an innovative down payment
assistance program from the Pennsylvania Housing Finance Agency, will provide
up to $6,000 in down payment help to at least 1,000 first time homebuyers.

"It's much harder to get a mortgage today than it was a year ago," the
Governor said. "Most banks are looking for 20 percent down, or even more. The
result is stable families looking for their first home can't come up with
money up front to purchase a home. That changes with the stimulus-funded First
Time Homebuyer Tax Rebate program."

Winn Development, a Boston-based national affordable-housing development
company, will be working to help convert the Felton Building in Steelton to
apartments. It will be the company's 10th project in Pennsylvania.

"Winn Development commends the commonwealth and PHFA for being among the first
states to implement the stimulus program in this way," said Cheryl Stulpin, a
vice president with the company. "What they are doing is going to have a big
impact on the people and communities of the commonwealth."

Governor Rendell said the funding for the 99 projects that will make
affordable housing more prevalent in the commonwealth comes from the
Neighborhood Stabilization and Low Income Housing Tax programs.

Neighborhood Stabilization will provide $57 million to help rehabilitate
properties in the commonwealth that were subject to foreclosure as a result of
subprime mortgage lending practices. NSP funding -- authorized by the federal
Housing and Economic Recovery Act of 2008 and administered by the Pennsylvania
Department of Community and Economic Development -- will assist 650 families
through 28 projects undertaken by local governments across the commonwealth.
The funds will allow local governments and their partners to acquire,
rehabilitate and resell foreclosed properties, and to redevelop vacant and
blighted sites.

The Low Income Housing Tax Credit program will provide $320 million in
stimulus funding to help put more than 3,580 families in affordable rental
housing units. The funding will be made available by the Pennsylvania Housing
Finance Agency, which will allow more than 3,580 families to move into
affordable rental housing units.

"With all of this money, people in Easton, Williamsport, Lebanon, Uniontown,
Erie, and elsewhere will soon have safe, affordable places to raise families,
get back on their feet and, most importantly, someplace to call home,"
Governor Rendell said.

For more information on the Pennsylvania Housing Finance Agency, visit
www.phfa.org.

For information on the Neighborhood Stabilization Program and other programs
administered by DCED, visit www.NewPA.com or call 1-866-466-3972.

The Rendell administration is committed to creating a first-rate public
education system, protecting our most vulnerable citizens and continuing
economic investment to support our communities and businesses. To find out
more about Governor Rendell's initiatives and to sign up for his newsletter,
visit www.governor.state.pa.us.EDITOR'S NOTE: The following projects have been
approved (some of the PHFA funding is subject to final board approval
Thursday).

Lackawanna County

Neighborhood Stabilization Program
-- The City of Carbondale Redevelopment Authority will receive $750,000
to
acquire foreclosed properties; demolish blighted, vacant properties;
and
construct new homes on cleared sites. In total, five units will be
developed and eight will be demolished.

-- The City of Scranton will receive $3 million to develop 24 units and
demolish 22 units in the 50-square block South Scranton Revitalization
area.

Luzerne County

Neighborhood Stabilization Program
-- Wilkes-Barre will receive $2,400,000 to target a blighted,
tax-foreclosed former industrial site. After the City of Wilkes-Barre
demolishes structures on the site with non-NSP funds, the deed for the
land will be donated to a nonprofit housing corporation, which will
construct 18 energy-efficient housing units

-- Luzerne County will receive $1,693,406 to develop six units and
demolish
nine units in the cities of Nanticoke and Pittston.

Pennsylvania Housing Finance Agency funding

-- Saint Stanislaus will receive $2,422,713 for the development of 30
units.

Monroe County

Neighborhood Stabilization Program

-- Monroe County will receive $825,000 to buy, rehab and resell
foreclosed
homes in Mt. Pocono, Stroudsburg, and East Stroudsburg. Five units
will
be sold to households all at or below 50% AMI. The county plans to
use
Monroe County Habitat for Humanity in the rehabilitation of these
homes.

Pennsylvania Housing Finance Agency funding
-- White Stone Commons will receive $8,352,391 for the development of 72
units.

-- Limekiln Manor will receive $5,095,483 for the development of 40
units.

Susquehanna County

Neighborhood Stabilization Program

-- Susquehanna County will receive $567,000 for the purchase of
foreclosed
homes in Susquehanna Depot. Six units will be developed and one unit
will be demolished.

Pennsylvania Housing Finance Agency funding

-- Chocolate Creek Apartments will receive $4,317,213 for the development
of 24 units.

CONTACT:
Chuck Ardo
717-783-1116

Luke Webber (DCED)
717-783-1132

SOURCE Pennsylvania Office of the Governor

Chuck Ardo of Pennsylvania Office of the Governor, +1-717-783-1116; or Luke
Webber of Pennsylvania Department of Community and Economic Development,
+1-717-783-1132