Chase, Fannie Mae to finance building of first homes in Katrina-ravaged New Orleans neighborhood
Catholic Charities in New Orleans to start with single-family homes
NEW ORLEANS, March 27, 2006 – The JPMorgan Chase Foundation and Fannie Mae announced today they are providing $450,000 in initial financing to Catholic Charities Archdiocese of New Orleans to build the first new homes in one of the city’s neighborhoods hardest-hit by Hurricane Katrina.
The funds will be provided at zero percent interest to support a demonstration project to build five homes in the Esplanade Ridge/Treme neighborhood on land owned by the Ujamaa Community Development Corporation.
“At Chase, we try to support our communities when they need it most, like now,” said John Kallenborn, the New Orleans president of Chase, the retail and commercial bank of JPMorgan Chase. “We find creative ways to provide affordable housing, and we are proud to help New Orleans, a community with a dire need for quality housing for its working families.”
Three of the houses will be built on lots in the 1800 block of Dumaine. The remaining two houses will be built in the 900 block of North Prieur Street.
Catholic Charities will make the purchase prices affordable for low-income residents by seeking allocations of HOME and community development block grant funds from the City of New Orleans, said James R. Kelly, CEO of Catholic Charities.
“This demonstration project will be a beacon of light in a city devastated by Hurricane Katrina,” he said. “It will provide critically needed housing for residents anxious to return to New Orleans.”
“Fannie Mae is proud to work with so many partners who are moving forward and offering solutions to the housing crisis in New Orleans,” said Tim Carpenter, director of Fannie Mae’s Louisiana Community Business Center.
Catholic Charities also will work with Ujamaa CDC to qualify potential homebuyers.
The three-bedroom, two-bath modular homes will be constructed by Palm Harbor Homes, and will average 1,300 square feet of living space. Each home will be constructed to withstand 130 m.p.h. winds, and exterior designs will reflect the traditional housing stock of New Orleans.
Catholic Charities chose modular housing to reduce time and cost of construction and to mitigate the lack of skilled construction workers currently available in New Orleans.
As the initial homes are completed and sold, Catholic Charities will develop additional homes on other vacant lots owned by Ujamma CDC, Tulane/Canal Neighborhood Development Corp., Café Reconcile and Christopher Homes, Inc. – all partners with Catholic Charities in the newly formed Providence Community Housing. Over the next three years, the group seeks to pool its housing resources and expertise to develop 5,000 units of quality affordable housing, including single-family homes, multi-family apartments and supportive housing for special-needs populations.
In addition to the partnership with Catholic Charities, JPMorgan Chase is supporting Louisiana consumers, businesses and government entities affected by the hurricanes in a variety of ways.
“The breadth of JPMorgan Chase allows us to have a meaningful impact on the recovery process across south Louisiana,” said Mark Willis, head of Chase’s Community Development Group.
JPMorgan Chase’s efforts include:
* Extending branch hours and opening branches on Sundays and Labor Day immediately following Hurricane Katrina
* Deferring mortgage and other loan payments for customers affected by the storms
* Underwriting a $1.5 billion bond offering for Louisiana Citizens Insurance Plan, the state-owned insurance company
* Making loans to small- and medium-sized businesses since the storms hit south Louisiana
Catholic Charities Archdiocese of New Orleans is an umbrella agency of approximately 33 social and health services programs located throughout the Archdiocese. The Catholic Church has been helping clothe, feed, educate and care for the needy in New Orleans for 300 years.
Palm Harbor Homes, Inc. (Nasdaq/NM: PHHM) is one of the nation’s leading manufacturers and marketers of factory-built homes. For more information visit the company’s website at www.palmharbor.com.
Fannie Mae is a New York Stock Exchange company. It operates pursuant to a federal charter. Fannie Mae has pledged through its American Dream Commitment to expand access to home ownership for millions of first-time homebuyers; help raise the minority homeownership rate to 55 percent; make homeownership and rental housing a success for millions of families at risk of losing their homes; and expand the supply of affordable housing where it is needed most. Fannie Mae is a registered trademark of Fannie Mae.
Chase is the U.S. consumer and commercial banking brand of JPMorgan Chase & Co. (NYSE: JPM). The JPMorgan Chase Foundation contributes more than $100 million to thousands of non-for-profit organizations around the world and provides more than $3 billion in community development lending and investing for housing and economic development in low- and moderate-income communities. More information about Chase is available at www.chase.com.
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