Affordable Housing Program Awardees

January 28, 2009

Federal Home Loan Bank of New York Awards $1 Million Affordable Housing Grant in Newark

Two projects will provide affordable housing for both single women recovering from domestic violence and low- and very-low income families

Newark, New Jersey — The Federal Home Loan Bank of New York announced today that it is awarding $1,000,000 through two affordable housing grants to Integrity Women’s Program Housing to help fund housing for single women recovering from domestic violence; and to Life Management, Inc. to help fund high-quality affordable housing for low- and very low-income families. In total, the combined projects will create 70 affordable housing units in Newark.

“It is vital that we provide safe, affordable housing to all those who need it,” said Representative Donald M. Payne (NJ, 10). “Aided by today’s grants from the Federal Home Loan Bank of New York, Peapack-Gladstone Bank and the New Community Federal Credit Union have partnered with two tremendous organizations to strengthen the Newark community.”

“Supporting our communities and neighbors has been a tradition of Peapack-Gladstone Bank for more than 85 years,” said Garrett P. Bromley, executive vice president and chief lending officer of Peapack-Gladstone Bank, which submitted the application for the funds for the Integrity Women's Program Housing project. “With the support of Representative Payne and our partnership with the Federal Home Loan Bank of New York and Integrity Women’s Program Housing, we are able to provide safe, family-oriented affordable housing for those who need it.”

“We are proud that our Credit Union is participating as a vehicle of housing investment in our State,” said Msgr. William Linder, founder and CEO of New Community Corporation, which submitted the funds for the Roseville Commons project. “The participation of New Community Corporation with RPM in providing housing and limited commercial space on the Orange Street corridor will have significant impact in the development of this major artery. This investment is long overdue.”

“The Newark community will benefit tremendously from this influx of affordable housing, which will revitalize two neighborhoods and have a tremendous impact on the lives of so many,” said Alfred A. DelliBovi, president and CEO of the Home Loan Bank. “I commend our member lenders, these community organizations and Representative Payne, whose work and support will serve to strengthen the community.”

The $400,000 grant to Integrity Women’s Program Housing will be put toward the rehabilitation of a 20,000-square foot apartment building that will provide housing for 20 very low-income women and their children. The completed building will have a security system, laundry facilities, a community room and a toddlers’ play area. On-site supportive services will include mental health counseling, life skills training, employment training and referrals and substance abuse treatment. Medical services, schools, daycare, transportation and grocery stores are easily accessible in the surrounding neighborhood.

The $600,000 grant to Life Management, Inc. will fund construction of the 50-unit Roseville Commons building, which will consist of new, high-quality two-, three-, and four-bedroom rental units for low- and very low-income families. Ten of the units will be set aside for formerly homeless households. The building will feature an energy-efficient design using sustainable construction materials in accordance with the Environmental Protection Agency’s Energy-Star Program requirements. Available services will include financial literacy programs and on-site summer and after-school enrichment programs for children.

Additional financing for the $3.5 million Integrity Women’s Program Housing project will be provided by the New Jersey Housing and Mortgage Finance Agency Special Needs Housing Trust Fund, the Department of Community Affairs Shelter Support Program, the Department of Human Services, the U.S. Department of Housing and Urban Development Supportive Housing Program, and the City of Newark and Essex County HOME funds.

Additional financing for the Roseville Commons project will be provided by the Neighborhood Preservation Balanced Housing Program, the Special Needs Trust Fund, Newark HOME funds, New Jersey Housing Mortgage Finance Agency tax-exempt mortgage financing, and Low Income Housing Tax Credits. This project has also received a tax abatement from the City of Newark.

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.

Peapack-Gladstone Bank
Established in 1921, Peapack-Gladstone Bank is a $1.4 billion asset, wholly owned community bank that offers a full range of quality banking products and services to businesses and residents of Essex, Somerset, Hunterdon, Middlesex, Morris and Union counties in New Jersey, through 23 full-service branches, an online branch and a Trust division, PGB Trust & Investments.  In addition to its personal and business banking product line, Peapack-Gladstone Bank offers consumer and commercial lending products and services like auto and home equity loans and lines of credit, residential mortgages, commercial mortgages, term loans, lines of credit and construction loans.  For additional information about Peapack-Gladstone Bank or to open an account online, visit www.pgbank.com or call 908-234-0700.  Member FDIC. Equal Housing Lender.

New Community Credit Union
The New Community Credit Union is a community development credit union (CDCU) founded with the specific mission of serving low and moderate-income and minority communities beyond the reach of banks and mainstream credit unions. As a “community development credit union” (CDCU) we specialize in serving populations generally considered the hardest to serve, including low-income wage earners, recent immigrants, and people with disabilities. For more information go to www2.newcommunity.org

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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