COMMUNITY NEWS

October 01, 2002
Wachovia Receives $2.8 Million Award from U.S. Treasury
CDFI Fund Award Recognizes Over $24.5 Million Invested in Community Development/Financing Initiatives

Wachovia Award is Largest Presented to a Financial Institution This Year

CHARLOTTE, N.C. - Wachovia Corporation said today that it has been awarded $2.8 million from the U.S. Treasury Department's Community Development Financial Institutions Fund's 2002 Bank Enterprise Award Program. The award, announced Sept. 19, recognizes Wachovia's investment of more than $24.5 million in qualifying community development and financing initiatives in fiscal year 2002. This award is the largest presented to a financial institution this year.

The Bank Enterprise Award (BEA) program provides incentives to financial services companies to increase their direct investment in specialized, community-based banks known as Community Development Financial Institutions (CDFIs). It is designed to increase institutional lending, investments and financial services in distressed communities.

Wachovia will use the CDFI award funds to support future investments in community development projects, continuing to leverage additional sources of capital to fund a variety of projects across the markets in which the company operates.

“Our skill in leveraging government program dollars with private capital to benefit lower-income communities truly makes Wachovia a valued-added partner for CDFIs,” said Jane Henderson, senior vice president and director of community development for Wachovia. “This award will help us expand our ability to finance a broad range of community development projects.”

Wachovia’s support for CDFIs also includes its sponsorship of the annual National Community Capital Association CDFI Excellence Awards, which recognize and honor excellence among CDFIs. The 2002 awards will be held Oct. 31 in Oakland, Calif. at National Community Capital Association’s Annual Training Conference.

Wachovia community development investments that resulted in the BEA award include:
Connecticut
Provided a $3,000 grant to Greater New Haven Community Loan Fund to support program services that promote affordable housing, revitalization and stabilization of neighborhoods in the Greater New Haven community.
Georgia
Extended a $1million term loan to a subsidiary of the Atlanta Neighborhood Development Partnership to create a loan pool formed through a consortium of local banks and government entities. The proceeds will be used to fund pre-development, acquisition, construction, lines of credit and bridge loans for non-profit developers and also real estate projects for community development corporations. The loans will be made in Atlanta and surrounding areas.
Massachusetts
Committed $3.3 million to the Housing Partnership Fund, Inc., a CDFI financial institution that provides financing for pre-development and acquisition costs in the preservation of multi-family rental housing. Project financing will be concentrated along the eastern seaboard from Connecticut to Florida.
New Jersey
Funded a $15,000 grant to the New Jersey Community Loan Fund to provide loans to organizations building affordable housing in lower-income communities throughout New Jersey.
New York
Committed $1.4 million to the Local Initiatives Support Corporation. The proceeds will be used to provide grants, loans and equity investments to fund neighborhood redevelopment in urban and rural communities throughout the United States.
North Carolina
Initiated a $10 million loan used by the Self Help Ventures Fund to create a secondary market for non-qualified mortgage loans extended to low- and moderate-income homebuyers.
Closed a $1.5 million working capital line of credit to the Charlotte Mecklenburg Housing Partnership to support the acquisition and construction of affordable housing projects. A $75,000 grant also was provided to support ongoing program operations.
Committed a $1.3 million loan to the North Carolina Minority Support Center to deposit funds in community development credit unions that provide consumer loans to low- and moderate-income individuals.
Committed a $1 million loan to the North Carolina Community Development Initiative Capital, Inc. It will fund a loan pool that provides gap and equity financing to community development corporations in North Carolina involved in housing and economic development projects.
Provided a $50,000 grant to the North Carolina Institute of Minority Economic Development, Inc., to provide training, advocacy and program support to small- business, minority and women-owned businesses and lower-income communities.
Pennsylvania
Invested $2 million in equity with TRF Urban Growth Partners, LP, to make investments in urban-based companies that create new employment opportunities in the region.
Provided contribution support totaling $16,000 to Neighborhood Housing Services of Reading to support affordable housing construction and program operations in the region.
Virginia
Participated in a loan fund totaling $1.75 million with the Federation of Appalachian Housing Enterprise, Inc., that provides short-term financing of multi-family or commercial real estate projects that benefit low- and moderate-income individuals. Also provided a $27,500 program grant to support ongoing operations.
Provided a $5,000 grant to the Virginia Community Development Loan Fund to support the small-business loan pool and technical assistance program.
Washington, D.C.
Committed a $1 million working capital line of credit to Cornerstone, Inc., a CDFI, to provide financing to organizations that build housing and provide mental health services to the mentally challenged. In addition, extended a $2,000 grant to Cornerstone for the benefit of lower-income mental health patients who need air conditioning in their homes.
Provided a $5,000 grant to H Street Finance Corporation to fund a six-week summer financial literacy youth initiative for lower-income and disadvantaged high school students.
Provided a $3,000 grant to the Washington Area Community Investment Fund to provide financing for affordable housing and day care centers.
Funded a $2,500 grant to Unitarian Universalist Affordable Housing Corporation to support the organization’s childcare lending program. The program provides micro-loans to day care providers serving low- to moderate-income children.
About Wachovia Corporation
Wachovia Corporation (NYSE:WB), created through the September 1, 2001, merger of First Union and Wachovia, had assets of $325 billion and stockholder's equity of $30 billion at June 30, 2002. Wachovia is a leading provider of financial services to 20 million retail, brokerage and corporate customers throughout the East Coast and the nation. The company operates full-service banking offices under the First Union and Wachovia names in 11 East Coast states and Washington, D.C., and offers full-service brokerage with offices in 49 states and global services through more than 30 international offices. Online banking and brokerage products and services are available through wachovia.com and firstunion.com.

Email This Page

Printer Friendly Version

Documents marked with this icon require Adobe Acrobat Reader. If you don't already have this software installed, you can download it for free from Adobe's Web site. Get Acrobat Reader now.