National Corporation for Housing Partnerships

"The place a man lives is more than just another commodity, service or possession; it is a symbol of his status, an extension of his personality, a part of his identity, a determinant of many of the benefits - and disadvantages - of society that will come to him and his family: schooling, police protection, municipal serv­ ices, neighborhood environment, access (or lack of ac­ cess) to a hundred possibilities of life and culture." "Segments of the urban poor today know and feel their relative deprivation, in housing or in other regards, to an unprecedented degree. The overwhelming con­ trast of their own living condition with that of the wealthy majority is brought home everyday by modern means of communication." "There is a complex relation among the quality of housing, the behavior of people, the condition of a neighborhood, and the life of the poor." "These relationships are by no means simple. Better housing, alone, will not overcome all the ills of today's poverty, but better housing is one essential part of the effort to do so.,,

From The Report of the President's Committee on Urban Housing, December 11, 1968

1 The President's Committee on Urban Housing believed Goal that American business should have a way to turn con­ cern for the nation's housing problems into commitment to solve them. The Committee recommended the adop­ of the tion of Title IX of the Housing and Urban Development Act of 1968. The National Corporation for Housing Part­ Housing nerships and the National Housing Partnership are the first organizations to be established by the President Partnership under the authority of this new law. The Partnership and the Corporation are financed entirely with private capital. Their mission is to use these funds as development seed money and for equity to accelerate investment in housing for low and moderate income families. The capital of the Partnership will be combined with private that of other available investors to furnish the equity used in conjunction with 90% government insured mort­ development gages. The initial Partnership capital of approximately $40 million should produce approximately $1.6 billion of low and in construction - about 100,000 new or rehabilitated homes. The National Housing Partnership offers attractive moderate rent advantages for local partners - individuals, corpora­ tions, institutions - as well as public and community housing organizations: For local families and individuals - it develops de­ cent and attractive housing and offers an opportunity to participate in planning, management, and ultimately ownership. For the local community and non-profit organizations - it provides the know-how and cash to produce needed low and moderate income housing. For the local builder - it offers seed money and pro­ gram assistance which can generate more construction with a chance to earn builder and developer profits and tax savings. For the local architect, engineer and lawyer - it stim­ ulates business and expands the local tax-preferred in­ vestment opportunities. For the local investors - it combines profit potential and attractive social investment with limited risks and offers an expert and financially able partner to produce the housing. As the past decade will be remembered for giant strides in the peaceful uses of the atom, the jet age, and the conquering of space, the National Housing Part­ nership hopes to make the '?O's memorable for housing achievement.

Carter L. Burgess Chairman and Chief Executive Officer of the National Corporation for Housing Partnerships

2

Organization of the National Corporation for Housing Partnerships and Local NATIONAL Partnerships INVESTORS

FEES FOR SERVICES

SERVICES

LOCAL PARTICIPANTS LOCAL VENTURERS Architect NCHP Lawyer Builders, Builder Contractors, 1,11----.. Mortgagee Non-Profit Corporations, or Consultants Community Development Groups

PROJECT LOCAL INVESTORS EQUITY Local Venturers other Local Investors

FEES FOR SERVICES 90% FHA Insured Mortgage

TAX SAVINGS CASH DISTRIBUTION

4 The Corporation and the Partnership are two linked contribute capital to the project or it might also provide entities jointly referred to as the "Venture." Together assistance in different phases of development such as they provide the money and technical staff to produce obtaining debt or equity financing or securing govern­ housing for low and moderate income families. ment approvals. Benefits for Investors in National Housing Partnership The Corporation - Management The bulk of the funds of the National Housing The National Corporation for Housing Partnerships Partnership will be used to organize and invest in local is the staff arm of the Venture. It has received five per­ limited partnerships formed to build and operate hous­ cent of the total capital invested in the Venture and will ing and related facilities for low and moderate income assist the development of local projects on an invest­ families. Investor return will be similar to that available ment or consulting basis. from normal real estate investment and will produce the The Corporation will serve as the general partner of following benefits: The National Housing Partnership - the investing arm of the Venture - and in this capacity will be the link between the Corporation's development functions and Income Tax Cash Savings. The most substantial re­ the Partnership's investment role. turn of the Venture will be the tax savings generated by The Corporation will provide a wide range of services the several developments owned in part by the Part­ to local housing programs. These services might in­ nership. Expenses during construction and accelerated clude establishing joint ventures with local builders and depreciation produce income tax losses that can be off­ community groups, forming local partnerships, and set against other taxable income. Resulting tax savings assisting in the development of architectural, engineer­ will be passed to investors through the Partnership. ing and construction plans. Aid may be provided in preparing applications for government insurance and subsidy, arranging financing, assuring timely construc­ Cash Distributions. Regulations governing the proj­ tion, and in all other activities needed to achieve the ects in which the Venture will invest permit a local development of the project. partnership to make an annual distribution of cash After completion of the development, the Corporation of up to 6% of the initial stated equity of the project. will assist in management of the housing including the To the extent such cash is returned to the Partnership, introduction and use of modern budgeting, accounting there could be a distribution to its investors. and reporting practices and policies. If the Partnership has invested in a project, the Corporation will manage its interests. Further, it may Cash Proceeds from Sale of Project. The availability assist in the formation of tenant cooperatives and non­ of proceeds for distribution from sale of all or a portion profit organjzatjons that may ultimately purchase the of a local project will depend upon the terms of the local project. Aid could be provided in arranging for sale, the unamortized balance of the mortgage and the financing of such purchases and in counseling as to income taxes payable. The Board of Directors will de­ property acquisition and management. cide whether to distribute or re-invest such funds.

The National Partnership - Capital Additional Return. The Venture may also engage in The National Housing Partnership has received other housing and related activities such as development ninety-five percent of the investment in the Venture. It of facilities and enterprises to support the production will act as the principal source of risk capital (seed of low and moderate income housing, research, tech­ money) and equity. nical assistance and construction loan financing. These activities may produce earnings that could be available The Local Partnership for distribution. Housing projects in which the Venture participates may originate in several ways. In most instances the Venture will have an active role in originating projects. For example, it may join with a local developer, builder, Benefits for Investors in Local Projects non-profit housing corporation, community group or The Venture's local partner will receive tax savings others in identifying an appropriate site, obtaining archi­ and cash distributions in proportion to its share of the tectural and engineering plans, processing government local project with fees for any services it performs. applications, securing financing and completing all other The local parties can also obtain cash upon the sale of action necessary to bring a project to construction. any portion of their interest in the project. For these purposes, a joint venture agreement may be entered into between the Venture and the local partici­ Benefits for Local Participants pants and "seed money" advanced. When the project Local builders, construction workers, engineers, archi­ reaches an appropriate point, a limited partnership will tects, lawyers and financial institutions will also benefit be formed and equity capital accepted from other by payment for services. The community will obtain investors. real estate taxes. The best return goes to the tenants The Venture may also invest in projects already being, who will enjoy attractive, safe and sanitary housing at a or about to be, developed. In such cases, it might only price that is reasonably related to their incomes.

5 The National Corporation for Housing Partnerships Activities functions both as a participant in local ventures and as a consultant. It offers a full range of investment and consultant services. and Services of The Corporation can serve as joint venturer or sole developer to initiate and execute projects. Seed money National may be loaned or advanced when appropriate. The National Housing partnershjp will ultimately jn­ Corporation for . vest in suitable low and moderate income projects. The E_artnership will own 25% , or more if other investors are' not available, of most projects that the National Corpo­ Housing ration for Housing Partnerships belps develop In most cases the local builder-developer community Partnerships or non-profit organization will be a general partner with responsibility for management and operation of the housing. The Corporation's consulting services are available, asa on a fee basis, to corporations, public officials, organi­ zations, or individuals interested in developing low and developer, moderate income housing. The Corporation offers, either on a consulting basis investment partner as a co-sponsor or developer, these services: A Washington Office for Local Developers and With an office in Washington, D. C. the Corporation is a valuable communication center with the Depart­ consultant ment of Housing and Urban Development, the Federal National Mortgage Association, other federal housing agencies and the Congress.

Seed Money When the Corporation participates in the development of local housing, it will advance risk capital or make a secured loan for land acquisition, preparation of archi­ tectural plans, and organization of the project.

Equity Investment The National Housing Partnership will make part of the ultimate equity investment in local developments for low and moderate income families. The Partnership will invite local equity investment so that, where possible, it's investment will not exceed 25% of the total equity.

Site Evaluation The Corporation will evaluate the proposed projects, their economic feasibility, market requirements and suitability as housing for low and moderate income families.

Assistance with FHA Processing The Corporation will prepare applications and work with federal, state and local agencies to obtain project approvals.

Help with Financing Arrangements Applications for construction and permanent financing will be completed and processed in cooperation with banks, insurance companies, mortgage bankers, and other financial institutions.

Project Coordination The Corporation will supervise and coordinate th~ preparation of the development program, architectural plans, financing, construction, leasing and management.

6 Program Planning The Corporation will identify different federal, state and local programs designed to assist in the construc­ tion of low and moderate income housing.

Banking In appropriate situations the Corporation may assist builders to obtain financing,bonds,or letters of credit.

Citizen Planning The Corporation will coordinate with local citizen groups to ensure that development program is consistent with the objectives of the community.

7 Because production of housing tor low and mod­ Focus on erate income families under existing cost conditions is generally not feasible without assistance, the National Housing Partnership will be active primarily in federal, government­ state and locally-assisted programs. These programs include: assisted Federally-Assisted Multifamily Rental Housing - FHA The Department of Housing and Urban Development housing programs (HUD) administers a variety of federal programs tor low and moderate income housing. In general, these pro­ grams provide tor two forms of federal assistance: sub­ sidies of rents or mortgage payments, and mortgage loan insurance. The programs of primary interest to the Ven­ ture are the Section 236 (which generally supersedes the Section 221 (d)3 and Section 202 housing programs, Rent Supplement and Section 221(d)4 programs. Section 236 Under the basic Section 236 program, 90% mortgages tor limited dividend sponsors are insured for 40 years. Rents tor low to moderate income families depend on location and size of family (between $3,000 and $10,500 a year) and are based on a mortgage bearing interest at 1 % . The government makes up the differ­ ence between that rate and the FHA maximum market interest rate to the lender. Rent Supplement With the rent supplement program, lower rentals can be achieved because the assistance payment can be as much as 70% of total occupancy cost. Section 222(d)4 The Section 222(d)4 is a market rental program tor moderate income, elderly, handicapped or displaced persons. FHA assisted projects pay local real estate taxes except when exempted by local statutes.

8 Federally-Assisted Public Housing Federally-Assisted Sales Housing The Public Housing Program administered by HUD The Section 235 program provides monthly subsidy through local housing authorities will also be of inter­ payments similar to those under Sec. 236, for low and est to the Partnership. moderate income families to purchase homes. The Corporation anticipates developing such housing but Leasing generally only as part of a land development program. The Venture will be active in the leasing programs. State-Assisted Programs The Partnership expects to form local ventures to pur­ The National Housing Partnership expects to partic­ chase or construct housing projects for lease to a ipate in state and local programs for development or local housing authority in accord with a federal guar­ sale of rental housing for low and moderate income fam­ antee agreement. Low income families would be ilies. eligible to lease the units from the housing authority. The tenants' rent would be assisted by the federal Non-Assisted Housing contract to the local housing authority. The National Housing Partnership may invest in non­ assisted housing development which can produce hous­ Turnkey ing at rents which low and moderate income families can The Turnkey Public Housing Program enables a pri­ afford. vate developer to construct housing projects for sale to local housing authorities. Permanent financing is based on tax-exempt bonds. The Partnership will not give major attention to this program because tax sav­ ings are lost when the project is transferred to the local housing authority.

Turnkey Management This program contemplates private management of projects owned by Local Public Housing Authorities. It includes no assistance other than that available in conventional public housing programs. When the Corporation has developed local management capa­ bility, it would be interested in administering public housing contracts.

9 4 Basic patterns Initial Planning Step1

The Corporation has developed several pat.ems of LOCAL DEVELOPER STAf.F ASSISTANCE operation tailored to the needs of local developers, Land builders, contractors, non-profit housing corporations, Architectural Plans local public officials, community development groups Construction Contract FHA lnSU£BnCe SECURED NON-INTEREST BEARING and others engaged in producing low and moderate Mortgage Commitment SEED MONEY LOANS income housing. Methods of operation are flexible and ' ' will evolve as the Corporation grows and as the needs of the industry change.

1. Equity Participation Under the first and simplest approach, the Partner­ ship would enter into an agreement to purchase 25% of the equity in a local project just prior to the start of construction. This produces valuable cash flow to the builder. The planning of the project, including the ad­ vance of all seed ·money for land, architecture and financing would be the responsibility of the local de­ veloper (Step 1). The equity purchase makes the Corp­ oration's FHA processing skills available. Prior to construction, the local developer would com­ Equity Participation • plete the organization of the local partnership that will sponsor and own the project. The Partnership would acquire 25% of the equity and the local developer and Loan and Equity Participation • other investors would purchase the balance (Step 2). The local developer would serve as the general partner of the local partnership. By contractual relationship with the local partnership, this developer would assume the principal production responsibility and receive the major portion of benefits except for tax savings. These would be shared among the parties in accord with their equity (Step 3). After the project is completed, the cash flow and tax benefits are passed to the partners in proportion to their ownership (Step 4).

2. The Secured Loan and Equity Participation This is designed to provide hard-to-find risk capital for builders, local developers, contractors, non-profit housing corporations, and community development groups. The Venture will advance as a secured loan a por­ tion of the seed money required to initiate a project (Step 1). The Corporation would provide limited guid­ ance and assistance. Prior to construction (Step 2) the Partnership would acquire a 25% equity interest. The purchase price would reflect the seed money loan which is repaid at initial closing of the FHA mortgage out of mortgage proceeds. The development and management stages (Steps 3 and 4) are the same as in the Equity Participation Joint Venture • illustration.

10 Partnership Organization Development Management Step2 Step3 Step4

REPAYMENT OF LOAN LOCAL DEVELOPER LOCAL DEVELOPER LOCAL DEVELOPER

Land ASSIGNMENT STAFF Architectural Plans OF RIGHTS ASSISTANCE Construction Contract DEVELOPMENT FHA Insurance SUPERVISION PROFITS FEES FOR Mortgage Commitment SERVICES, IF ANY LOCAL LIMITED LOCAL LIMITED BUILDERS LOCAL LIMITED DISTRIBUTION DISTRIBUTION EQUITY FEE TAX SAVINGS (cash & depreciation) DISTRIBUTION SPONSOR DURING SPONSOR FEES SPONSOR CONSTRUCTION GENERAL LIMITED GENERAL LIMITED GENERAL LIMITED PARTNER(S) PARTNERS PARTNER(S) PARTNERS PARTNER(S) PARTNERS Land Architectural Plans Construction Contract 25% EQUITY FHA Insurance (cash & depreciation) EQUITY Mortgage Commitment TAX SAVINGS CONTRIBUTION DURING EQUITY CONSTRUCTION (cash & depreciation)

MORTGAGE PAYMENTS

90% MORTGAGE PROCEEDS

MORTGAGEE LOCAL MORTGAGEE LOCAL &FHA INVESTORS & FHA INVESTORS

DEVELOPMENT PROFITS DEVELOPMENT PROFITS BUILDERS EQUITY FEE (cash & aepreciation) FEES FOR SUPERVISION SERVICES, DEVELOPMENT PROFITS IF ANY

TAX SAVINGS STAFF STAFF DURING CONSTRUCTION ASSISTANCE ASSISTANCE TAX SAVINGS ASSIG T OF RIG TS DURING CONSTRUCTION

25% EQUITY (cash & depreciation)

EQUITY MORTGAGE PAYMENTS (cash & depreciation) EQUITY 90% MORTGAGE CONTRIBUTION PROCEEDS & FHA

11 for development

3. The Joint Venture Here the Venture offers a full range of services as a partner in the project. The Corporation and a local builder or community organization would organize a joint venture and the corporate staff would assist at every stage of develop­ ment (Step 1). The Corporation would provide all or a share of the seed money and a cash investment to com­ plete the project. A local partnership would be formed to sponsor the project and in most cases the local co-venturer would act as the general partner (Step 2). By assuming a proportional share of the development risks and by advancing cash and staff time, the Venture would own a part of the project as a full partner. Before construction beqins, the Venture would ar­ range a sale of 50% of its interest to local limited part­ ners and retain a 25% interest in the local partnership (Step 2). Unlike the previous illustrations, the Corporation would assume development risks and share in the result­ ing profits (Step 3) . Like the other cases the tax savings and cash flow generated during management would be distributed in proportion to the partners• investment (Step 4). 4. Direct Development In appropriate situations the Corporation is prepared to develop a project alone. The Corporation would in­ vest all of the seed money and retain a builder and other professionals to perform on a fee basis. Prior to construction, the Corporation would arrange for the sale of 75% of its interest to local limited partners and hold 25% in the local partnership. The tax savings and cash flow, as in the other cases, would be shared in proportion to the partners• investment. Stockholders of NCHP

AFL-CIO First Federal Savings and Loan Lazard Freres & Co. Aetna Life Insurance Company Association of Phoenix The Penn Mutual Life Insurance Company Lear Siegler, Inc. Alcoa Ventures, Inc. First Federal Savings and Loan J. C. Penney Company, Inc. Levi Strauss & Co. Alden's Inc. Association of Chicago People's Savings Bank Alliance for Labor Action First & Merchants National Ejank Ling-Temco-Vought, Inc. Phelps Dodge Corporation Allied Chemical Corporation The First National Bank of Atlanta Litton Industries, Inc. The Philadelphia National Bank American Airlines, Inc. The First Natiorral Bank of Boston The Lomas & Nettleton Company The Philadelphia Savings Fund Society American Bank and Trust Co. of Pa. The First National Bank of Chicago Manufacturers Hanover Trust Company Philip Morris, Incorporated American Express Company First National Bank In Dallas Manufacturers National Bank of Detroit Phoenix Mutual Life Insurance Company American Mortgage Company The First National Bank of Denver Marine Midland Banks, Inc. PIC Realty Corporation (subsidiary of Prudential Insurance Company of American National Bank and Trust The First National Bank of Memphis Marine National Exchange Bank of America) Company of Chicago Milwaukee First National Bank of Oregon Pioneer National Title Insurance American Standard, Inc. First National Bank In St. Louis Martin Marietta Corporation Company Masonite Corporation Armco Steel Corporation The First National Bank of St. Paul Pittsburgh National Bank The Maytag Company Armstrong Cork Company First National City Bank Polaroid Corporation McGraw-Hill, Inc. Atlantic Mutual Insurance Company First National State Bank of New Jersey Potlatch Forests, Inc. Atlas Chemical Industries, Inc. The Mead Corporation First Pennsylvania Bank The Procter & Gamble Distributing Avco Savings and Loan Association First Union National Bank/Cameron- Medusa Portland Cement Company Company Baltimore Federal Savings and Loan Brown Company Mellon National Bank and Trust Company Association Provident National Corporation Fluor Corporation Mercantile Trust Company, N. A. (Provident National Bank) Bank of America, National Trust Ford Motor ·Company Metropolitan Life Insurance Company and Savings Association Public Service Electric and Gas Company Franklin New York Corporation Midwest Federal Savings and Loan Assoc Pullman, Incorporated The Bt nk of California, N.A. Fruehauf Corporation Miller Brewing Company Bank r/ Delaware The Quaker Oats Company First Citizens Bank & Trust Company Minnesota Mining and Manufacturing Co. Bankers Trust Company RCA Corporation GAF Corporation Mobil Oil Corporation Bechtel Corporation Raychem Corporation General Electric Company The Montana Power Company Beneficial Corporation Raytheon Company General Motors Corporation Berks Title Insurance Company Montgomery Ward & Co., Incorporated Republic National Bank of Dallas Georgia-Pacific Corporation (subsidiary of Marcor, Inc.) Bohemia Lumber Co., Inc. Republic Steel Corporation Boise Cascade Corporation Reynolds Metals Company The Bowery Savings Bank The Riggs National Bank of Washington Brunswick Corporation Rohr Corporation Burlington Industries Foundation Santa Barbara Savings and Loan C.I.T. Corporation Association Carrier Corporation Scott Paper Company Castle & Cooke, Inc. Scovill Manufacturing Company Caterpillar Tractor Company Joseph E. Seagram & Sons, Inc. Celanese Corporation Sears, Roebuck and Co. Central National Bank in Chicago Security Pacific National Bank Central National Bank of Cleveland Shenandoah Life Insurance Company Certain-teed Products Corporation A. 0 . Smith Corporation The Chase Manhattan Bank, N.A. Southwest Forest Ind., Inc. Chemical Bank Southern California Edison Company Chicago Title and Trust Company Southern California Gas Company The Citizens & Southern National Spartans Industries, Inc. Bank of South Carolina Standard Oil Company (Indiana) City Investing Company State Street Bank & Trust Company Columbia Broadcasting System, Inc. Stewart Title Guaranty Company Columbia Federal Savings and Loan Suburban Trust Company Association Talman Federal Savings and Loan Columbus Savings and Loan Association of Chicago Association The Tappan Company Profit Sharing Commerce Bancshares, Inc. Chase Manhattan Bank Chairman David Rocke f e 11 er & Retirement Fund Tenneco Foundation Commonwealth Land Title Insurance presents a check for $10,512,500 representing the Initial payment on the Company Texas Eastern Transmission Corp. $42 million subscribed by investors to NCHP President Ray A. Watt. Company Federal Savings and The Travelers Insurance Companies Loan Association The Girard Company (Girard Trust Bank) Morgan Guaranty Trust Company of Treadwell Corporation The Community Savings Bank of Glendale Federal Savings and New York U.S. Plywood-Champion Papers, Inc. Rochester, New York Loan Association Mountain States Investment Corporation UGI Corporation The Connecticut Bank and Trust Great Western Savings and Loan The Mutual Life Insurance Company of Union Bank, a subsidiary of Company Association New York Unionamerica, Inc. Consumers Power Company Gulf Oil Corporation The National Bank of Commerce in Union Dime Savings Bank Container Corporation of America Hammermill Paper Company New Orleans Union Oil Company of California Continental Assurance Company John Hancock Mutual Life The National Bank of Washington Union Trust Company of Maryland, Continental Can Company, Inc. Insurance Company The National Cash Register Company Baltimore, Md. Continental Illinois Nallonal Bank The Hanna Mining Company National Commercial Bank & Trust United California Bank and Trust Company of Chicago H. J. Heinz Company Company, Albany, N.Y. United States Gypsum Crane Co. Hercules, Incorporated National Distillers and Chemical The United States National Bank of Crocker-Citizens National Bank Hewlett-Packard Company Corporation Omaha Cummins Engine Company, Inc. Humble Oil and Relining Company National Newark & Essex Bank United States National Bank of Oregon Dart Industries, Inc. IBM Corporation The National Shawmut Bank of Boston United States Steel Corporation Deere & Company inland Steel Company National Steel Corporation Universal Oil Products Company Delaware Trust Company International Brotherhood of NELRECO Troy, Inc. The Upjohn Company Del Monte Corporation Electrical Workers New England Merchants National Bank USM Corporation of Boston The Detroit Edison Company International Paper Company Utah Construction & Mining Co. The New York Bank for Savings Di Giorgio Corporation International Telephone & Telegraph The Valley National Bank of Arizona Corporation New York Life Insurance Company E. I. du Pont de Nemours and Company Virginia National Bank Irving Trust Company North Carolina Mutual Life Insurance Wachovia Bank & Trust Company, N.A. Eli Lilly and Company Company El Paso Natural Gas Co. Jewel Companies, Inc. Jim Walter Corporation Johns-Manville Corporation North Carolina National Bank Washington Gas Light Company The Equitable Life Assurance Northern Illinois Gas Company Society of U.S. Kaiser Aluminum & Chemical Corporation Washington Heights Federal Savings and The Northern Trust Company Loan Association The Equitable Trust Company Kaiser Cement & Gypsum Corporation Northwestern National Life Wells Fargo Bank, N.A. Erie County Savings Bank Kaiser Industries Corporation Insurance Company Western Pennsylvania National Bank Evans Products Company Kaiser Ste"I Corporation Kennecott Copper Corporation Occidental Life Insurance Company Westinghouse Electric Corporation Farmers Bank of the State of of California Delaware Kerr-McGee Corporation West Side Federal Savings and Loan Olin Corporation Association of Fairview Park Fibreboard Corporation Peter Kiewit Sons' Co. Otis Elevator Company Kimberly-Clark Corporation Weyerhaeuser Company The Fires1one Tire & Rubber Company Owens-Corning Fiberglas Corporation Whirlpool Corporation Kirsch Company First Bank System, Inc. Owens-Illinois, Inc. The Wickes Corporation Koppers Company, Inc. First City National Bank of Houston PPG Industries, Inc. Wilmington Trust Company First Federal Savings and Loan Kraftco Corporation Pacific Gas and Electric Company World Airways, Inc. Association of Detroit Lamar Life Insurance Company Panhandle Eastern Pipe Urie Company Xerox Corporation

12 INCORPORATORS* of the National Corporation for Housing Partnerships

Edgar F. Kaiser, Chairman, meeting with lncorporators

Ernest C. Arbuckle Carter L. Burgess D. C. Burnham Edward J. Daly Edwin D. Etherington **Gilbert W. Fitzhugh William A. Hewitt Edgar F. Kaiser James J. Ling John L. Loeb Everett Mattson George Meany Andre Meyer David Rockefeller Stuart T. Saunders Leon N. Weiner John H. Wheeler

• Appointed by the President under Title IX of the Housing and Urban Development Act of 1968 .. Resigned July, 1969 to head Department of Defense study panel

President Richard Nixon meeting with lncorporators NCHP has Broad Endorsement

"You cfJ.n be sure of the Administration's interest and support in the venture of the National Corporation tor Housing Partnerships. It is my hope that the Corporation will begin operations at the earliest feasible date." PRESIDENT RICHARD NIXON October 22, 1969 (Telegram to NCHP lncorporators)

"The Partnership is a new and considerAd response to 8n urgent national problem. It will create an adequately capitalized, professionally managed corporation to help reach our goal: to build a yearly average of 600,000 housing units tor low and modernte income families over the next 10 years - a tenfold increase in the current rate of production." PRESIDENT LYNDON B. JOHNSON September 13, 1968

"We urge cooperation with Corporations and partner­ ships created under Title IX of the Housing and Urban Development Act of 1968, specifically with the NationfJ.I Corporation tor Housing Partnerships." SECRETARY GEORGE ROMNEY Department of Housing & Urban Development

"To help attract these elements of the business com­ munity (skills and organization that have not yet been applied to the production of low and moderate income housing on the scale that is needed) we are proposing, pursuant to the recommendation of the Kaiser Committee, that the Congress authorize the formation of privately funded partnerships that could operate on a national scale." SECRETARY ROBERT C. WEAVER Department of Housing & Urban Development Before the Subcommittee on Housing & Urban Affairs March 5, 1968

"We seek business involvement in meeting the urgent housing needs of the nation. The National Corporation tor Housing Partnerships will provide a means tor this involvement." SECRETARY MAURICE H. STANS Department of Commerce

" ... The Conference commends Congress for authoriz­ ing the National Housing Partnerships, endorses the crea­ tion of the National Corporation tor Housing Partnerships and all other privfJ.te efforts to produce housing tor low and moderate income families." U.S. CONFERENCE OF MAYORS Annual Meeting - June 18, 1969

"NAHRO endorses recent efforts to involve private enterprise more fully in housing and urban development - creation of the National Corporation tor Housing Partner­ ships in the Housing and Urban Development Act of 1968 and recent efforts of the Department of Housing and Urban Development to accelerate the private participation in housing technology and marketing. Both of these efforts are aimed at bringing the investment resources, manage­ ment techniques, and research capacity of private enter­ prise to the urban field. JOURNAL OF HOUSING - NAHRO November 1969 INCHP Officers Experts

in many RAY A. WATT President fields CARTER L. BURGESS Mr. Watt formerly headed R. A. Watt Co., Chairman and Chief a subsidiary of Boise Cascade Corp., Executive Officer from which he resigned in February, 1969, to serve as a special consultant to Mr. Burgess is a former U.S. Ambassador the Secretary of Housing and Urban to Argentina and Special Consultant to Development. The company, which he the Secretary of Commerce. For ten founded in Southern California in 1947, years he headed American Machine and is pne of the nation's largest home Foundry Co. and is a former president building firms. Mr. Watt is a director of Trans World Airlines. He was Assistant of American Mobilehome Corp., a Secretary of Defense for Manpower in developer of mobile home parks, a the Eisenhower Administration. Mr. member of the National Association of Burgess is a director of American Home Builders, and has served as a Airlines, Ford Motor Co., P. Morgan & member of the Advisory Committee to Co., and Morgan Guaranty Trust Co. the California State Real Estate of New York and Smith, Kline & French Commissioner. Laboratories.

E. THOMAS STODDARD HOWARD R. MOSKOF Special Assistant - Controller Vice President - Operations

Prior to joining the Corporation, Mr. Mosko! served as Executive Mr. Stoddard was an independent Director of the President's consultant, Controller of Liberty Committee on Urban Housing, Equities Corporation, and Manager which originated the recom­ GEORGE W. DeFRANCEAUX with Touche Ross & Co. mendation for establishment of Executive Vice President He was with Touche Ross & Co. the National Corporation for Mr. DeFranceaux is the former chairman for nine years, serving as manager Housing Partnerships. He is a and president of Frederick W. Berens, in charge of an audit staff of former Deputy Director and Inc., Washington based mortgage twenty professionals, with General Counsel of the District of banking firm having three wholly-owned responsibility for utilization, Columbia Redevelopment Land subsidiaries. He was first president training and quality control. Agency. He is a former U.S. and director of Associated Mortgage His experience includes defense Attorney for the District of Companies, Inc., which acquired the and other government contracting, Connecticut, and earlier served Berens company in 1962. He is currently including job cost accounting the New Haven Redevelopment chairman of Frederick W. Berens Sales, and control systems. Agency in various capacities and Inc., a real estate sales entity not as Director of the New Haven connected with the mortgage corporation. Legal Aid Bureau. He is a member He is a director in other organizations of the Bars of Connecticut, New engaged in various phases of the real York and the District of Columbia. estate business and is also a member of the Advisory Committee, Federal Nationa Mortgage Association.

SIDNEY FREIDBERG Vice President and General Counsel Mr. Freidberg has had broad experience in law, real estate and public service. A graduate of Yale Law School, he has practiced in New York and Washington, and has written extensively for legal periodicals. Mr. Freidberg has been the president and general partner of several syndicates for the development of urban housing, and has been active in community relations. He served in the O.S.S. and the War Production Board, and was counsel to a Select Committee of the Congress. Most recently, he has been Commissioner of the Foreign Claims Settlement Commission of the U.S., by appointment of the President. I

National Corporation for Housing Partnerships 113315th Street, N.W., Washington, D.C. 20005 (202) 466-8200 CJ\.