[Congressional Record Volume 141, Number 23 (Monday, February 6, 1995)]
[Extensions of Remarks]
[Page E279]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                     AFFORDABLE HOUSING IN WINDWOOD

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                         HON. SOLOMON P. ORTIZ

                                of texas

                    in the house of representatives

                        Monday, February 6, 1995
  Mr. ORTIZ. Mr. Speaker, a cherished part of the American dream is 
home ownership. It gives people a sense of permanence and a stake in 
their communities and in their country.
  Today, a first of its kind public-private partnership with Fannie Mae 
and the city of Brownsville, Texas Commerce Bank, the Department of 
Housing and Urban Development HOME Program, Federal Home Loan Bank of 
Dallas, and Mercantile Bank NA, was announced for the development and 
construction of a subdivision to provide affordable housing to hundreds 
of Brownsville residents. The single-family homes to be constructed at 
Windwood will be available for purchase by families earning as little 
as $11,500 per year through a unique lease-purchase financing plan that 
will transfer fee-simple ownership to qualifying families in 2 years.
  Today in Texas, 59.3 percent of the families own their own homes. 
This rate compares with a national home ownership rate of roughly 64 
percent, according to the latest U.S. Census figures. As the 
Representative of families living in the 27th Congressional District of 
Texas, I am pleased to see the Brownsville Community Development Corp., 
Fannie Mae, Federal Home Loan Bank of Dallas, and the Texas Commerce 
Bank spearheading such public-private partnerships which will help 
young, hardworking families in south Texas move into the home they have 
always wanted.
  The Windwood Development will be the largest lease-purchase housing 
program on a single site ever financed by Fannie Mae's Southwestern 
Regional Office. Fannie Mae will buy over $11.2 million in first lien 
loans originated by Texas Commerce Mortgage Co., a division of Chemical 
Bank. Families wishing to purchase their home under the lease-purchase 
program must make a $750 down payment, exhibit a credit history 
acceptable to Texas Commerce Mortgage Co., complete a first-time home 
buyer education program, and contribute monthly payments for 2 years to 
an escrow account set up to assist the family in saving the remainder 
of the down payment and closing costs.
  This public-private partnership is one of the State's most innovative 
combinations of public and private sector financing. Anytime a city can 
completely recover a public sector investment through the immediate 
creation of a property tax base, while at the same time providing safe, 
high-quality housing and the opportunity for home ownership for our 
citizens--we all win.
  The subdivision at Windwood is specifically targeted to provide the 
opportunity for young, working families to own a high quality home of 
their own. This reduces the need for them to live in cramped quarters 
with their parents, or to pay for building their own home later.
  The total project is expected to be completed within 2 years and will 
cost approximately $13 million. Financing partners will include Texas 
Commerce Mortgage Co.--supplying $11.2 million in one-time assumable 
loans, the Department of Housing and Urban Development HOME Program--
through the city of Brownsville, the Federal Home Loan Bank of Dallas--
providing $1.6 million in second lien deferred loans, and Mercantile 
Bank NA--lending $10 million for interim construction and development 
financing, and Fannie Mae. The Community Development Corp. of 
Brownsville will be the project owner through the lease purchase 
period, and will serve the project developer.
  I commend the financing partners for recognizing the needs of the 
local community, while at the same time exhibiting the willingness to 
invest in new solutions to help working Brownsville families realize a 
part of the American dream. It is only through public-private 
partnerships such as these that the dream of home ownership will become 
a reality for many of our working families in south Texas.


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