[Congressional Record Volume 141, Number 99 (Friday, June 16, 1995)]
[Extensions of Remarks]
[Page E1282]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  WACHOVIA BANK OF GEORGIA WINS AWARD

                                 ______


                           HON. JACK KINGSTON

                               of georgia

                    in the house of representatives

                         Friday, June 16, 1995

  Mr. KINGSTON. Mr. Speaker, I would like to take this time to 
congratulate the Wachovia Bank of Georgia, N.A., Savannah, for their 
recent receipt of the Outstanding Community Investment Award. Wachovia 
Bank of Savannah and the Neighborhood Housing Services of Savannah Inc. 
[NHS], are one of six partnerships to receive this prestigious award 
from the Social Compact, an organization which fosters cooperation 
between financial institutions and American neighborhoods. They are 
being recognized for their joint efforts in pioneering a model strategy 
for transforming vacant, abandoned properties into quality single-
family homes for first-time homeowners and, in the process, infusing 
vulnerable neighborhoods with the strength of new stakeholders.
  Wachovia Bank of Georgia and NHS of Savannah began their partnership 
in 1993. Their pioneer program, the NHS Home Auction, represented the 
first time in the Nation that a city government, in partnership with a 
neighborhood-based organization and local financial institutions, 
conducted an affordable housing auction of dilapidated, city-owned 
properties for sale to first-time home buyers. The 1993 auction 
resulted in the rehabilitation and sale of 31 homes to lower income 
buyers, representing an investment of $1.5 million in the community. 
The 1994 auction sold 52 homes valued at $3.8 million.
  This achievement represents innovation in urban renewal for both the 
city of Savannah and the Nation as a whole. Many American cities suffer 
both socially and economically from problems caused by aging inner-city 
housing. For years, city leaders and urban planners have searched for 
ways to turn these houses into assets rather than liabilities. Wachovia 
Bank and NHS of Savannah have done just that by transforming formerly 
vacant and dilapidated properties into quality homes which are 
securing--rather than threatening--the surrounding homes. The new 
stakeholders and increased investment is infusing fragile Savannah 
neighborhoods with a new lease on life. For the first time, these 
neighborhoods are being viewed as neighborhoods of choice, and they are 
growing as economically diverse and viable areas.

  These victories would not have been possible without this partnership 
approach which maximized the strengths of each partner. By joining 
forces, the city, NHS, and Wachovia were able to stretch limited public 
sector resources while maximizing opportunities for private sector 
involvement. A key challenge to any urban renewal program is financing 
the very costly process of either replacing or renovating aged housing. 
The combined rehabilitation and purchase costs significantly exceed 
neighborhood market values, conventional loan terms, and the mortgage 
carrying capacity of the lower income borrowers. The partners in this 
program used creative financing approaches to help assure long-term 
affordability while providing financial incentives for the new home 
buyers to remain in the community.
  Wachovia provided essential leadership to NHS for establishing the 
organizational capacity to undertake such a complex and resource-
intensive venture. By pioneering mortgage programs for lower income 
buyers, providing revolving lines of credit essential for property 
acquisition, and financing the rehabilitation of the properties 
following purchase, the bank played a key role in this housing program. 
The city of Savannah and Wachovia should be congratulated for their 
partnership which not only helps the city itself but can also serve as 
a national model for urban renewal cooperation between cities and 
private business. The Outstanding Community Service Award recognizes 
their many achievements.
  I would once again like to congratulate the individuals involved in 
this program. It is an honor and a privilege to represent them.

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