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 $255,000 Affordable Housing Grant in New York City

Two projects provide 18 homeownership opportunities for low-income homebuyers.

New York, New York — The Federal Home Loan Bank of New York announced today affordable housing grants of $135,000 to El Barrio Operation Fightback and $120,000 to Harlem Congregations for Community Improvement to help fund the development of 18 cooperative apartments for low-income, first-time homebuyers on 116th Street and 129th Street, respectively, through the Tenant Interim Lease Pilot Program. Carver Federal Savings Bank, a Home Loan Bank member, submitted the application for the funding for both grants.

“Carver Federal Savings Bank and the Federal Home Loan Bank of New York are long-time supporters of affordable housing in New York City. They know that people can't begin to realize their potential and improve the lives of their children and community if they are constantly worried about the roof over their heads,” said Representative Charles B. Rangel (NY, 15). “These grants will support two tremendous community organizations as they strive to create nearly 20 new homeownership opportunities for low-income households.”

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.

“Representative Rangel and the Federal Home Loan Bank of New York share Carver’s continuing legacy of providing affordable financing and housing in our communities and we are proud to partner with them to support these homeownership opportunities,” said Deborah C. Wright, Chairman & CEO of Carver Federal Savings Bank.

“For 20 years, the Home Loan Bank of New York has been given the tremendous opportunity to work hand-in-hand with New York’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 two grants will be used to reduce the purchase price of the cooperatives to an affordable level. The Tenant Interim Lease Pilot Program involves the rehabilitation of two partially occupied rental buildings on 116th Street and 126th Street in New York City to create 18 cooperative apartments for low-income, first-time homebuyers. The current residents and low-income first-time homebuyers will able to purchase cooperative shares upon project completion.  During rehabilitation, the purchasers will attend training on managing a cooperative including sessions on building management, finance, and governance.  They will also be required to attend first-time homebuyer training, which includes credit counseling, budgeting, homeowner responsibilities, and building operations to ensure the long-term success of the project.  The City of New York’s Department of Housing Preservation and Development has donated the building sites to the sponsor. 

Additional funding for both will be provided by City Capital funding, the New York State Affordable Housing Corporation, Housing Trust Fund, and Energy Research and Development Authority. 

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.

Carver Bancorp, Inc.
Carver Bancorp, Inc. is the holding company for Carver Federal Savings Bank, a federally chartered stock savings bank, founded in 1948 to serve African-American communities whose residents, businesses and institutions had limited access to mainstream financial services. Carver, the largest African- and Caribbean-American run bank in the United States, operates nine full-service branches in the New York City boroughs of Brooklyn, Manhattan and Queens. For further information, please visit the Company’s website at www.carverbank.com.

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.