National Cooperative Bank Provides $3.7 Million Line of Credit to HomeOwnership Lending, LLC to Finance Small Share Loans in New York Limited Equity Housing Cooperatives
Arlington, VA (October 31, 2018) – National Cooperative Bank (NCB), a leading lender to cooperative housing and their members nationwide, recently closed a $3.7 million line of credit to HomeOwnership Lending, LLC ( HOL), a nonprofit Community Development Financial Institution and a subsidiary of Urban Homesteading Assistance Board (UHAB).
The loan facility will allow HomeOwnership Lending to originate individual unit loans to new residents of limited equity housing cooperatives in the State of New York. National Cooperative Bank will provide the ongoing servicing of the cooperative unit loans.
The financing program between NCB and HOL will allow access to capital for residents to purchase into a limited equity housing cooperatives, which has been difficult in the past due to the small loan size and government restrictions limiting resales.
The program, with a minimum loan amount of $10,000 and a 15- year fixed rate term, will serve borrowers with Area Median Income (AMI) from 30% to 165% in approved New York limited-equity housing cooperatives.
“This program was a true example of innovation and collaboration in serving the needs of new cooperative housing members”, stated Charles E. Snyder, President and CEO of National Cooperative Bank. “We have seen the need for small share loans for purchasers in limited equity housing cooperatives for many years and the partnership with HomeOwnership Lending and UHAB will be a great benefit to provide affordable homeownership in the state of New York.”
“Over the past several years as we surveyed co-ops and spoke with co-op practitioners across the country the need for small share loans for limited equity co-ops was nearly universal” observed Andrew (Andy) Reicher, Executive Director of UHAB. “The creation of HomeOwnership Lending and $3.7 million of support from the National Cooperative Bank (NCB) helps meet this need in New York and is a first step towards meeting this need across the country.”
About HomeOwnership Lending, LLC
HomeOwnership Lending is a CDFI-certified and licensed mission-driven lender that provides loans for affordable cooperative homeownership in New York City and beyond. With UHAB’s decades of experience in creating, serving and supporting affordable co-ops nationwide, HOL has the expertise in meeting the needs of both co-ops and future homeowners in co-ops that are subsidized by federal, state and city agencies. All loans are structured to be as affordable as possible to eligible individual borrowers purchasing in income-restricted housing making the dream of affordable homeownership a reality. Each loan we make helps to grow HOL and achieve our mission of creating more affordable homeownership opportunities for hardworking households.