May 1, 2006

People's Bank Participates In Ur Home Program

People's serves as a lender while offering closing cost benefit to employees qualifying for returning CHFA program

BRIDGEPORT, CONN. - People's Bank announced that it will be a lender in the Urban Rehabilitation Homeownership (UR Home) Program scheduled to launch May 1. People's Bank is also supporting the program by providing a $2,500 benefit toward closing costs for bank employees who qualify for the program.

The program is intended to increase homeownership in Connecticut's urban areas including: Bridgeport, Hartford, New Haven, New London, Waterbury and Windham/Willimantic (census tract 8006). Participants must be willing to purchase and occupy a home in need of at least $5,000 in repair and be employed in one of these six targeted cities.

A pilot UR Home Program was launched in July of 2001 for a two-year period. In April 2003, bond funds for the rehabilitation portion of the initiative were depleted, thereby bringing the program to an end. However, due to new funding, the UR Home Program is launching once again, allowing homebuyers to revitalize their communities and reduce highway congestion by working where they live.

Participating homebuyers will:

• receive a 30 year fixed-rate mortgage at 1/4 percent below the CHFA regular Homebuyer Program rate
• be eligible for loans to be used for rehabilitation costs of up to $20,000 for a single-family dwelling and $25,000 for a two-to-four unit dwelling, and
• have their UR Home loan forgiven at a rate of 20 percent per year for a period of five years.

There are no income limit requirements on the CHFA first mortgage. All participants must buy and occupy a home in the city in which they work.

In addition to being a lender for the UR Home Program, People's Bank will provide a $2,500 benefit toward closing costs for bank employees who qualify for the program.

"This is People's second time participating as a lender in the UR Home Program. During the pilot's launch in 2001, People's was the number one lender in the program. We look forward to continued success as we develop relationships with this year's UR Home participants," said Valencia Taft-Jackson, manager of Affordable Lending at People's Bank. "We are equally proud to extend the closing cost benefit to our employees. A number of employees took advantage of the benefit in 2001, and we encourage all our employees to participate again to help revitalize Connecticut's major cities."

For more information on eligibility for the UR Home Program and mortgage assistance, please contact Valencia Taft-Jackson at 203-338-3832.

Founded in 1842, People's Bank (peoples.com) is one of Connecticut's largest banks with assets of $11 billion, more than 240 ATMs and 153 branches, 70 of which offer convenient seven-day banking in Super Stop & Shop locations across the state. A diversified financial services company, People's Bank provides consumer, commercial, insurance, brokerage, financial advisory and trust services to personal and business banking customers. For more information about People's, its products and services, please call 800-772-1090, visit peoples.com or any of People's branches.