| Marketplace competitors team up to support homeownership |
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Wells Fargo and ResCap volunteers working together at Ripley Gardens project
Contact: Sharon Rolenc
(MINNEAPOLIS, MN – June 20, 2006) — Marketplace competitors make
unusual bedfellows… however that’s not the case with Wells Fargo and
Residential Capital Corporation (ResCap) in the Twin Cities. Leading
players in the home mortgage industry, these two financial powerhouses
have one thing in common, a connection to the community through
affordable housing. Together with Twin Cities Habitat for Humanity
(TCHFH), Wells Fargo and ResCap are taking part in an unprecedented
construction effort in North Minneapolis’ Harrison neighborhood. Changes in the Twin Cities housing market are precipitating changes in how corporate sponsors can best support Habitat projects. “It’s no longer the best strategy to build one or two Habitat homes in a neighborhood,” said Gerry Stenson, Wells Fargo executive vice president and TCHFH board member. “To make a greater impact, we need to reach out to other community and corporate partners and work together to transform neighborhoods. This project is a great example that supports the new approach.” Historically, Twin Cities Habitat has looked to keep its corporate sponsors separate by providing each with an exclusive single-family home to construct. However, in the face of rising land acquisition costs and a dynamic shift in the housing climate, Habitat’s business model has undergone a face lift. While its old model catered to single-family home ownership, the new face of Habitat reflects the need for multi-generational, mixed-income and mixed-use housing. And the changes don’t stop there. Twin Cities Habitat sponsors are also undergoing a change. As champions of affordable housing in the Twin Cities metro area, Wells Fargo and ResCap have participated in individual Habitat projects for over a decade. Now working together at Ripley Gardens, these two competitors realized the need to redefine their relationship. This year alone, the dynamic duo will supply nearly 1,200 volunteers and dedicate more than $250,000 in financial support to the Ripley Gardens With hammers in hand, Wells Fargo and ResCap are not only building a stronger community, they are building the future of corporate sponsorship. project. "Partnerships like this have made the Ripley Gardens project a reality, and are a vivid example of what it takes to create new affordable housing opportunities for the thousands of hard-working families in need,” said Susan Haigh, President of Twin Cities Habitat for Humanity. In total, volunteers from Wells Fargo, ResCap and other non-profit organizations and corporations will work to construct eight new owner-occupied town homes at the site. “The Ripley Gardens project is a great opportunity for ResCap, Wells Fargo and other community partners to pool our financial resources and volunteers to help revitalize the Harrison Neighborhood,” said Sharon Sayles Belton, ResCap Managing Director and VP of Community Relations. “We will achieve a greater impact for the families and this neighborhood by working as a team.” About Ripley GardensListed on the National Register of Historic Places, Ripley Gardens is home to three historic structures: a Tudor cottage, a bungalow, and the centerpiece of the project—the former Martha G. Ripley maternity hospital. This unique development will incorporate the restoration of these historic buildings with the addition of two new buildings that will compliment and reflect the historic nature of the site. Ripley Gardens will offer the full package to potential home owners. The pedestrian-friendly project will incorporate a wide range of sustainable design elements such as the use of interior finish materials made with recycled content, passive solar heating, and water conserving appliances and fixtures. The project will also include two levels of underground parking to reduce the need for impervious surfaces and maximize visual appeal. From beginning to end, this 1.9 acre site will give way to expansive green space and community amenities such as a computer lab and fully equipped recreation room. About Twin Cities Habitat for HumanityThe mission of Twin Cities Habitat for Humanity is to eliminate poverty housing from the Twin Cities and to make decent, affordable shelter for all people a matter of conscience. Volunteer labor, donated materials and contributed funds are used to build and renovate homes in the Twin Cities area. Working under the faith-based principle that no profit should be gained from assisting those in need, Habitat for Humanity charges no interest on the mortgages that it issues to homebuyers. Families who purchase Habitat homes are selected based on need, ability to repay the zero percent mortgage, and willingness to partner. Families put in 300-500 hours of sweat equity helping to build Habitat homes. Since 1985, TCHFH has built more than 600 homes in the seven-county metro area and engages more than 20,000 volunteers a year. For more information, visit www.tchabitat.org About Wells FargoWells Fargo in Minnesota provides financial services from 245 locations and employs more than 20,000 team members throughout the state. Wells Fargo & Company is a diversified financial services company with $492 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,200 stores and the internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only bank in the United States to receive the highest possible credit rating, “Aaa,” from Moody’s Investors Service. About ResCapResidential Capital Corporation is a leading real estate finance company, focused primarily on the residential real estate market in the United States, Canada, Europe and Latin America. Residential Capital Corporation's diversified businesses -- GMAC-RFC, GMAC-RFC Securities, GMAC Mortgage, ditech.com, GMAC Bank, GMAC Real Estate and Homecomings Financial -- cover the spectrum of the U.S. residential finance industry, from origination and servicing of mortgage loans through their securitization in the secondary market. They also provide capital to other originators of mortgage loans, residential real estate developers, resort and timeshare developers and healthcare companies. Residential Capital Corporation is an indirect wholly owned subsidiary of General Motors Acceptance Corporation (GMAC). For more information about the company, visit https://www.rescapholdings.com . |
