Flagstar aims to revitalize community through the Strategic Neighborhood Fund
TROY, Mich., April 22, 2019 /PRNewswire/ -- Flagstar Bank today announced Old Redford as the first neighborhood partnership supporting the City of Detroit's Strategic Neighborhood Fund (SNF) and Affordable Housing Leverage Fund (AHLF). The announcement took place at a press conference at Crowell Community Center in Old Redford.
Flagstar, along with six other corporations, has committed $5 million over five years to the City's two funds to help revitalize neighborhoods. The City has already sought residents' input in Old Redford and developed an action plan. The announcement of the first teaming of a neighborhood with a corporate partner is a key step in turning plans into action.
"Old Redford is a proud Detroit community rich in potential," said Sandro DiNello, CEO of Flagstar Bank. "The spirit of the community, combined with our commitment, has all the makings of a great partnership."
"We've never had this kind of investment in our neighborhoods, and so we had a discussion with the residents about pairing up with our corporate partners," said Mayor Mike Duggan. "The Old Redford community response was incredibly positive to the idea of a partnership with Flagstar, and I know together, we are going to do great things for this neighborhood."
Fresh off the announcement of the partnership, Flagstar is already working with the community:
- On April 23, Flagstar will be at the Crowell Community Center taking part in the Pathways to Homeownership Fair. Loan officers from Flagstar will be on hand to talk to residents about affordable housing options available to them, including a new mortgage product called Destination Home that's custom-crafted for communities like Old Redford.
- On May 4, Flagstar employees will be in the Old Redford neighborhood as volunteers in Motor City Makeover, the City's annual cleanup and beautification initiative.
- And later in May, Flagstar will work with Building Families First community organization to rehab two Detroit Land Bank homes in the community, work with potential renters to get them into the houses, and ultimately, help them purchase the home.
"With features like no down payment and a renovation option, we think Destination Home is a perfect fit for the community," said Kristy Fercho, president of Mortgage at Flagstar. "We would love to see a spike in homeownership in the community as a result of Destination Home."
The City of Detroit created the two funds – SNF and AHLF – as tools to strategically spread investment throughout Detroit and support residents in neighborhoods. SNF, managed through Invest Detroit, funds community-driven projects in four specific areas – park improvements, streetscape improvements, commercial corridor development, and affordable single-family home stabilization. AHLF, managed through Local Initiatives Support Corporation Detroit, is a tool to support the creation and maintenance of affordable housing in neighborhoods throughout Detroit. The city has committed $50 million in public funds to get the program underway.
This comprehensive neighborhood revitalization effort is the result of a public-private-philanthropic partnership with a total fundraising goal of $130 million for SNF and $250 million for AHLF.
About Flagstar Bank
Flagstar Bancorp, Inc. (FBC) is an $18.5 billion savings and loan holding company headquartered in Troy, Mich. Flagstar Bank, FSB, provides commercial, small business, and consumer banking services through 160 branches in Michigan, Indiana, California, Wisconsin, and Ohio. It also provides home loans through a wholesale network of brokers and correspondents in all 50 states, as well as 75 retail locations in 24 states, representing the combined retail branches of Flagstar and its Opes Advisors mortgage division. Flagstar is a leading national originator and servicer of mortgage loans, handling payments and record keeping for $175 billion of home loans representing nearly 827,000 borrowers. For more information, please visit flagstar.com.
Susan E. Bergesen