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September 3, 2004

Credit Union's Yonkers Co-ops to be Offered in October Drawing

Thanks to a letter writing campaign from Actors Federal Credit Union members that generated more than 500 letters to the National Credit Union Administration (NCUA) and to six months of additional efforts and negotiations, AFCU reports that the Yonkers Co-op Project is back on track.

The renovation, yielding 18 two-bedroom co-ops, each with approximately 1,000 square feet of living space, is expected to be completed and ready for sale this fall. AFCU will be holding a drawing on October 15, 2004 exclusively for its members to determine who will have the opportunity to apply for a mortgage and purchase a co-op at 35-37 Hudson Street in Yonkers.

"We hope to keep the average cost for each unit at about $155,000. We've worked hard to keep the cost of the co-ops affordable. Through an arrangement with JDK 35 Hudson Street, Inc., the individual units will be selling at cost," said Jeff Rodman, AFCU president. When we're finished, the building will have a new elevator and each apartment will have two baths and a washer and dryer." The renovation has expanded the building from an existing three stories to a total of five, with rooftop terraces and street level retail spaces. The building is located about two blocks from an express-stop Metro North-Amtrak railroad station, making it a commute into Grand Central Station of about 28-30 minutes.

Drawing Scheduled
The drawing to determine the order of priority for who can purchase a co-op will take place at 2 p.m. EST on October 15, 2004 on the 14th Floor at 165 West 46th Street in New York. "It's very, very important that members who have their names selected in the drawing realize that until they obtain a mortgage, they are not guaranteed a co-op, only the opportunity to pursue the purchase of one of the units," said Mr. Rodman.

To ensure a fair and impartial selection process, AFCU has hired the American Arbitration Association (AAA) to collect the entries and conduct the drawing. All entries must be sent directly to the American Arbitration Association at 1633 Broadway, 10th Floor, New York, NY 10019-6708 or by e-mail to Credit Union employees, Board members and volunteers are not permitted to accept drawing entries under any circumstances. Entries will be accepted until 5 p.m. EST on October 12, 2004. Members need not be present at the drawing to retain eligibility.

Those selected in the drawing must be pre-qualified for a mortgage within ten days and have a commitment letter for a mortgage within 30 days of being selected in the drawing. Otherwise the next available person selected will be given the opportunity to purchase a co-op. Entry forms, drawing rules and ongoing progress reports of the renovation are available at and from the Lending Services Department.

BPD Bank Lends a Helping Hand
During their negotiations with the National Credit Union Administration (NCUA) on how to make the Yonkers project acceptable, the NCUA required AFCU to find another financial institution that had a strong background in construction lending to join with them in underwriting the project. After an extensive search, BPD Bank was able to help in funding the project.

BPD and AFCU are participating in lending money to JDK 35 Hudson Street, a private developer, to complete the building of the Yonkers co-op building. JDK has in turn agreed to build and sell the units exclusively to AFCU members at cost.

Special 90% Financing
Actors Federal Credit Union members who are interested in purchasing a co-op in AFCU's Yonkers Project, but are unable to afford a down payment of 20%, may still be eligible.

As a special offer for the Yonkers Project, members who qualify will be able to purchase a property with a 10% down payment. AFCU will then finance the remaining portion of the purchase price by offering a conventional mortgage of 80% of the purchase price in combination with a fixed-rate home equity loan for 10% of the purchase price. "This increase in the amount we are willing to finance, illustrates our commitment to helping members of the entertainment community afford a decent home," said Mr. Rodman.

AFCU offers a 3/1 Adjustable Rate Mortgage and a 1/1 Adjustable Rate Mortgage. AFCU's lower annual margin of 2.5% beats out most other financial institutions, which have margins of up to 3%. "Our lower margin means you'll be ahead on your interest rate by at least .25%-.50% when compared to other financials. On a $100,000 mortgage, our lower annual margin could provide an additional savings of more than $10,000 over the life of the loan," said Mira Ness, director of lending services.

AFCU's 3/1 ARM has a fixed rate for the first three years, with a first adjustment cap of 3% over the starter rate. Thereafter, it has the same caps as the 1/1 ARMó2% cap per year over the starter rate and a 6% lifetime cap over the starter rate. The current starter rate for the 3/1 ARM is 4.80%. The current starter rate for the 1/1 ARM is 4.15%.

For more information on Actors Federal Credit Union, call (212) 869-8926 or visit

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