In late June, Patterson, N.J., Mayor Jose "Joey" Torres joined representatives from Wrigley Park Development LLC, the Bank of New York, and Fannie Mae to announce the completion of the first home built under the Cool Cities urban revitalization initiative. This pilot project uses energy-efficient mortgages to help low- and moderate-income New Jersey residents become homeowners.
Cool Cities was designed to stimulate homeownership in New Jersey's urban areas in Camden, East Orange, Jersey City, New Brunswick, Newark, Paterson, and Trenton. Up to 50 families in the seven cities will be assisted through this initiative.
The Bank of New York provides the mortgage loans under the Cool Cities initiative. The lender will hold the loans as construction loans for the developer. After the home is purchased, the buyer will assume the loan. Fannie Mae will purchase the eligible loans originated by the Bank of New York.
Homes built or rehabilitated as part of the initiative will meet New Jersey's Public Service Electric & Gas Company's Energy Efficient Home 5 Star/ENERGY STAR Home program requirements, which uses one-third less energy for heating, cooling, and water heating than the average new home built in New Jersey.
Home buyers must contribute 3 percent of the home purchase price as down payment for single-family homes and 5 percent for two-unit properties. Other requirements include mandatory home buyer education and early delinquency intervention.
The initiative is part of Fannie Mae's $2 trillion American Dream Commitment to increase homeownership rates nationwide and serve 18 million targeted American families by the end of the decade.
Learn more about markets featured in this article: New York, NY.