Affordable Housing Program Awardees

July 6, 2006

Contact: Eric Amig - (212) 441-6807

FHLBNY Awards $11.6 Million For 34 Affordable Housing Initiatives in NJ, NY and PR

New York, NY -- Alfred A. DelliBovi, President of the Federal Home Loan Bank of New York, announced that the Bank has awarded $11.6 million in subsidies to fund 34 affordable housing initiatives throughout New Jersey, New York, and Puerto Rico. These awards, which are funded through the Bank’s Affordable Housing Program (AHP), will result in the creation of 1,751 housing units. It is anticipated that almost $217.1 million in development costs will be generated from development of these initiatives.

“The Federal Home Loan Bank and our member lenders are pleased to provide these funds to meet the special housing needs of over 34 communities receiving these AHP grants,” said Mr. DelliBovi. “Not only are we providing affordable homes, but we are also making contributions to the overall quality of life of these communities.”

The Federal Home Loan Bank of New York’s AHP provides member lenders with direct subsidies which are passed on to income qualified households through sponsoring local nonprofit organizations. AHP financing is combined with other funding sources to create housing for moderate-, low- and very low-income families. Program awardees receive this funding through a competitive application process. Each competing project must be sponsored by a financial organization that is a member of the Bank in partnership with a community-based sponsoring organization. Since 1990, the Federal Home Loan Bank has contributed almost $208 million to fund 32,619 affordable housing units in New Jersey, New York, Puerto Rico and the U.S. Virgin Islands.

These awards are a result of effective public/private partnerships involving the Federal Home Loan Bank, member banks and thrifts, and nonprofit community housing organizations.

The $11.6 million awarded today are funds drawn from the Bank’s earnings. As mandated by Congress, Bank members forgo 10 percent of their earnings to support these neighborhood housing and economic development initiatives.

The following New Jersey communities will benefit from the funds awarded today: Camden, Cherry Hill, Dover Township, Newark, and West Milford.

The following New York communities will benefit from the funds awarded today: Albany, Bronx, Brooklyn, Buffalo, Jamaica, Middletown, New York, Newburgh, Penfield, Rochester, Tannersville, Ulster, and scattered sites in New York.

The following Puerto Rico communities will benefit from the funds awarded today: Coamo.

The Federal Home Loan Bank of New York is a Congressionally chartered, wholesale Bank. It is part of the Federal Home Loan Bank System, a national wholesale banking network of 12 regional, stockholder-owned banks. The FHLB of New York currently serves over 300 financial institutions in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands. The mission of the Federal Home Loan Banks is to support the efforts of local members to help provide financing for America’s homebuyers.

Federal Home Loan Bank of New York
The Federal Home Loan Bank of New York is a Congressionally chartered, wholesale Bank. It is part of the Federal Home Loan Bank System, a national wholesale banking network of 12 regional, stockholder-owned banks. The FHLB of New York currently serves more than 340 financial institutions in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands. The mission of the Federal Home Loan Banks is to support the efforts of local members to help provide financing for America’s homebuyers.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This report contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as "projected," "expects," "may," or their negatives or other variations on these terms. The Bank cautions that, by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, regulatory and accounting rule adjustments or requirements, changes in interest rates, changes in projected business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our membership profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products, and general economic conditions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.