Affordable Housing Program Awardees

January 28, 2009

Federal Home Loan Bank of New York Awards $325,000 Affordable Housing Grant in Elizabeth

Combined projects will create six new homes and 91-unit apartment complex

Elizabeth, New Jersey — The Federal Home Loan Bank of New York announced today that it is awarding a $325,000 affordable housing grant to the Volunteers of America/Greater New York to help fund the rehabilitation of a vacant Madison Avenue building in Elizabeth, New Jersey. The Madison Avenue Apartments project will create 17 units of permanent supportive housing for persons with a mental health disability.

“When we increase the amount of safe, accessible affordable housing in our communities, we strengthen our neighborhoods,” said Representative Donald M. Payne (NJ, 10). “The Federal Home Loan Bank of New York, RSI Bank and the Volunteers of America/Greater New York today have partnered to ensure that Elizabeth is stronger than ever.”

“RSI Bank has been an active member of the community for more than 150 years,” said Don Godfrey, Senior Vice President, Lending and CRA Officer for RSI Bank, which submitted the application for the funds. “With the support of Representative Payne and our partnership with the Federal Home Loan Bank of New York and the Volunteers of America/Greater New York, we are continuing our mission to support the communities in which we serve.”

The $325,000 grant will be put toward the rehabilitation of the vacant four-story building. Upon completion, the building’s ground floor will contain the Volunteers of America’s supportive service and administration staff, a community room and a laundry room. Volunteers of America has received an award from the Division of Mental Health Service to provide on-site case management services for residents, who will receive around-the-clock staff availability, referral to numerous social services agencies in the community, financial management and life skills training, and linkages to a number of health care services.

“The Madison Avenue Apartments reflect what is possible when the entire community comes together to provide accessible, affordable housing for all those who need it,” said Alfred A. DelliBovi, president and CEO of the Home Loan Bank. “In addition to providing a safe, stable home for its tenants, the rehabilitation of this building will serve to revitalize the neighborhood.”

Additional financing for the $5.9 million project will be provided by City of Elizabeth HOME and Regional Contribution Agreement funding as well as an allocation from the New Jersey Special Needs Housing Trust Fund.

In 2008, the Federal Home Loan Bank of New York awarded grants totaling $42.9 million to fund 92 housing projects that will generate 4,655 units of affordable housing and an anticipated $975.5 million in development costs. For more information on these grants, please visit www.fhlbny.com/news/pressrelease.htm.

The Federal Home Loan Bank’s Affordable Housing Program (AHP), created in 1989, provides member community lenders with direct subsidies, which are passed on to qualified households through a sponsoring local non-profit organization. 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 semi-annual competitive rounds. Each competing project must be sponsored by a financial organization that is a member of the Federal Home Loan Bank in partnership with a community-based sponsoring organization.

RSI Bank
RSI Bank was founded in 1851 as the original Rahway Savings Institution, providing mortgages and traditional banking services to residents of Rahway.  Since that time the Bank has expanded, and provides a complete range of banking services, from checking and savings accounts to money market accounts and CDs, retirement accounts, tax-deferred annuities, life insurance, business accounts, as well as residential and commercial real estate lending.  For additional information please contact our Corporate Communications department at 732-587-1511. RSI Bank is a member of the Federal Deposit Insurance Corporation and an Equal Housing/Equal Opportunity Lender.  For more information, call 732-388-1800, or visit RSI’s Web site at www.RSIbanking.com.

Federal Home Loan Bank of New York
The Federal Home Loan Bank of New York is a Congressionally chartered, $130 billion, wholesale Bank.  It is part of the Federal Home Loan Bank System, a national wholesale banking network of 12 regional, stockholder-owned banks.  The Federal Home Loan Bank of New York serves 307 community lenders in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands.  The mission of the Home Loan Bank is to advance housing opportunity and local community development by maximizing the capacity of community-based member-lenders to serve their markets.

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.

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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.