Transit News
Contact: Donna Aggazio
(202) 496-4884
daggazio@apta.com
WASHINGTON, D.C., July 23, 2003 -Home buyers in select regions across the nation now have added financial incentives to purchase properties near public transportation through Fannie Mae's Smart Commute™. The Smart Commute Initiative, launched in the metro Washington area today, gives prospective home buyers the opportunity to qualify for a larger mortgage by recognizing savings gained from using public transportation.
"Americans who live in close proximity to public transportation save a total of $22 billion each year by using public transportation," said APTA President William W. Millar. "For each participating household, the Smart Commute Initiative improves mobility options, access to job markets, helps protect the environment, conserves energy, and boosts the potential for economic prosperity -- all great benefits worth promoting."
The Smart Commute Initiative assumes that borrowers will be more likely to use public transit if their homes are located near it, enabling them to save money that might otherwise be spent on automobile use and upkeep. One study shows that individuals traveling by car to and from work waste approximately $1,200 annually. In addition to metro Washington, DC, Smart Commute pilots are available in Burlington, VT; El Paso, TX; Louisville, KY; Minneapolis; Philadelphia; Pittsburgh; Salt Lake City; State College, PA; and Delaware. Fannie Mae will continue introducing Smart Commute to other cities throughout the year.
"This is an exceptional cooperative effort to make homeownership more available and more affordable to hundreds, if not thousands, of people in this region," said Daniel H. Mudd, vice chairman of Fannie Mae. "We have seen our lending and housing partners successfully introduce Smart Commute Initiatives in many cities around the country, but nothing on this scale or of this complexity. By using a great regional transit system and other services, homeowners participating in Smart Commute will have a very positive impact on the environment and livability of the area. Everyone wins."
"Reaching far beyond homeownership, the availability of vibrant public transportation systems coupled with the Smart Commute Initiative helps stimulate the economy," said Millar. "Everyone in a community benefits from public transportation, even if they do not ride it."
The Smart Commute Initiative is part of Fannie Mae's $2 trillion "American Dream Commitment®" to help increase homeownership rates nationwide and serve 18 million targeted American families by the end of the decade. For more information on Smart Commute, prospective transportation partners can contact Fannie Mae's Michelle Desiderio at (202) 752-4085 or michelle_desiderio@fanniemae.com. For more information on the benefits of public transportation, please visit www.publictransportation.org.
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APTA is a nonprofit international association of 1,500 member organizations including public transportation systems; planning, design, construction and finance firms; product and service providers; academic institutions; and state associations and departments of transportation. APTA members serve the public interest by providing safe, efficient and economical public transportation services and products. APTA members serve more than 90 percent of persons using public transportation in the United States and Canada.
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