11/03/2014
Citizens Financial Group provides multimillion-dollar real estate financing package for Greater Pittsburgh affordable housing development
Orchard Park Apartments will provide new homes for 44 families
DUQUESNE, PA (November 3, 2014) – Citizens Financial Group (NYSE: CFG) announced today that it is providing a multimillion-dollar real estate financing package to the Orchard Park Housing Initiative L.P. for the construction of 44 units of affordable family housing in Greater Pittsburgh.
The development, known as Orchard Park Apartments, will result in the new construction of 24 two‐story buildings consisting of 44 units of affordable housing for family households with incomes at or below 60 percent of area median income. In addition, the development at the intersection of Catherine and High streets will include an onsite 5,860-square-foot free-standing community building as well as the construction of new utilities, streets and other municipal improvements. Construction is scheduled to be completed by October 2015.
To support the development, Citizens Bank is providing $8.7 million in construction financing and $11.6 million in equity through the purchase of Low-Income Housing Tax Credits for its proprietary fund managed by City Real Estate Advisors, Inc.
Development sponsors are the Allegheny County Housing Authority (ACHA) and Ralph A. Falbo Inc. ACHA has designated Ralph A. Falbo, Inc. and Pennrose Properties, LLC as the master redevelopers on the project.
“Citizens clearly recognizes the need for affordable housing in the Pittsburgh area and has stepped up to make this project possible,” said Michael Polite, chairman and CEO of Ralph A. Falbo Inc. “The Citizens team has been a great partner, providing equity support and construction financing for Orchard Park Apartments, which will help dozens of Pittsburgh families secure affordable places to live.”
One year ago, Citizens announced a five-year, $1 billion commitment to funding affordable housing and community development projects.
“We are pleased to be working with community leaders in Pittsburgh to provide funding for crucial affordable housing projects,” said Dan Fitzpatrick, president of Citizens Bank, Pennsylvania. “Affordable housing serves as a foundation for the success of our communities. Our $1 billion commitment to affordable housing complements our charitable program, Citizens Helping Citizens, which addresses the key areas of hunger, economic development, financial education and volunteerism as well as housing.”
About Citizens Financial Group, Inc.
Citizens Financial Group Inc. is one of the nation’s oldest and largest financial institutions, with $131.3 billion in assets as of September 30, 2014. Headquartered in Providence, Rhode Island, the company offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. Consumer Banking helps its retail customers “bank better” with mobile and online banking, a 24/7 customer contact center and the convenience of approximately 3,200 ATMs and approximately 1,200 Citizens Bank and Charter One branches in 11 states in the New England, Mid-Atlantic and Midwest regions. Citizens also provides mortgage lending, auto lending, student lending and commercial banking services in selective markets nationwide. Citizens Commercial Banking offers corporate, institutional and not-for-profit clients a full range of wholesale banking products and services including lending and deposits, capital markets, treasury services, foreign exchange and interest hedging, leasing and asset finance, specialty finance and trade finance.
Citizens operates via subsidiaries Citizens Bank, N.A., and Citizens Bank of Pennsylvania. Additional information about Citizens and its full line of products and services can be found at www.citizensbank.com.
