Affordable Housing Program Awardees

August 4, 2009

Contact: Eric Amig - (212) 441-6807
Brian Finnegan - (212) 441-6877

Federal Home Loan Bank of New York Awards $162,000 Affordable Housing Grant in Bridgewater Township

Southside Avenue project will create nine affordable single-family homes.

Bridgewater Township, New Jersey — The Federal Home Loan Bank of New York announced today the award of a $162,000 affordable housing grant to Habitat for Humanity of Raritan Valley to help finance the construction of nine very low-income single-family homes as part of Bridgewater Township’s affordable housing plan. The Federal Home Loan Bank System is the largest single funding provider to Habitat for Humanity. Amboy Bank, a Home Loan Bank member, submitted the application for the funding.

“The homes that Habitat for Humanity, Amboy Bank and the Federal Home Loan Bank of New York have partnered to create will not only support Bridgewater Township’s affordable housing plan, but will also provide nine families with safe, stable homes,” said Representative Leonard Lance (NJ, 7).

This year marks the 20th anniversary of the Federal Home Loan Banks’ Affordable Housing Program (AHP), which was created by Congress in 1989. Since the Program’s inception, the Federal Home Loan Banks have provided more than $3.6 billion to facilitate more than 15,000 affordable housing projects across the nation. These grants have created nearly 670,000 units of affordable housing. At the Federal Home Loan Bank of New York, AHP has supported more than 1,100 projects with grants totaling more than $320 million, creating more than 46,000 units of affordable housing and generating nearly $6 billion in total development costs.

“At Amboy Bank, our mission is to support the local efforts of organizations such as Habitat for Humanity that enhance the quality of life of the people who live and work in our communities,” said George E. Scharpf, president and CEO of Amboy Bank, which submitted the application for the funds. “We are very pleased to be partnering with Representative Lance, Habitat for Humanity and the Federal Home Loan Bank of New York to create affordable homeownership opportunities in Bridgewater Township.”

“For 20 years, the Home Loan Bank of New York has been given the tremendous opportunity to work hand-in-hand with New Jersey’s esteemed elected officials, its locally-focused hometown banks and its terrific community organizations to bring safe, stable and affordable housing to the State,” said Alfred A. DelliBovi, president and CEO of the Home Loan Bank. “It is an opportunity, and a partnership, that we are most grateful for.”

The $162,000 grant will be used to reduce the sales prices of the nine homes to an affordable level. The addition of these homes is expected to enhance the stability of the surrounding neighborhood. The homes will be marketed and sold exclusively to very low-income families.  In addition to meeting income requirements, each family must show that they have a need for better housing, that they have a good credit and work history, and that they are willing to partner with Habitat for Humanity by helping to construct their own home.  All applicant families meeting these requirements will be placed into a pool, and the final family selection will made by lottery. 

Additional financing will be provided by the Somerset County HOME program, Bridgewater Township, Liberty Corner Presbyterian Church, Merck & Co., and Ortho-McNeil-Janssen Pharmaceuticals.

Today’s grant is part of a total of $16 million in AHP subsidies that the Federal Home Loan Bank of New York has announced in August. These grants will fund 39 housing projects that will generate 1,545 units of affordable housing in New Jersey, New York, Delaware and Pennsylvania. In January 2009, the Federal Home Loan Bank of New York awarded grants totaling $19.1 million to fund 51 housing projects that will generate 2,213 units of affordable housing and an anticipated $409.8 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, 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.

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.

Amboy Bank
Founded in 1888, Amboy Bank is a full-service commercial bank with 25 offices. Amboy has been voted “Best Bank in Central New Jersey” for 11 years in a row. It has assets of $2.6 billion.

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.