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 $606,500 Affordable Housing Grant in Newark and Jersey City

Lincoln Park Village and Ocean Pointe East & West developments will create more than 120 affordable housing units.

Newark, New Jersey — The Federal Home Loan Bank of New York announced today affordable housing grants of $400,000 to the Lincoln Park Cultural Coast District in Newark and $206,500 to the Jersey City Housing Authority to help fund the development of more than 120 units of affordable housing for very low-income families and seniors in Newark and Jersey City. Liberty Bell Bank, a Home Loan Bank member, submitted the application for the funding for both grants.

“The grants announced today by the Federal Home Loan Bank of New York and Liberty Bell Bank will support the creation of more than 120 units of quality affordable housing for the families and seniors of Newark and Jersey City,” said Representative Donald M. Payne (NJ, 10).

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.

“We are proud to partner with Representative Payne, the Federal Home Loan Bank of New York, the Jersey City Housing Authority and the Lincoln Park Cultural Coast District to bring more safe and affordable housing to Newark and Jersey City,” said John R. Herring, Senior Vice President and Chief Lending Officer of Liberty Bell Bank.

“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 $400,000 grant to the Lincoln Park Village project will help create an urban eco-village in Newark that will consist of 70 units of affordable housing for very low-income families. Lincoln Park Village is participating in the U. S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) Neighborhood Development pilot program, and each of the buildings will be designed to achieve LEED silver standards. All of the buildings will be constructed on a mostly vacant site that was conveyed to the sponsors by the City of Newark.

The $206,500 grant to the Ocean Pointe East and West project will help fund the construction of 59 apartments in two four-story buildings that will house very low-income senior citizens. Twenty of the units will be reserved for the frail elderly, and all residents will benefit from public housing operating subsidies.  The two buildings will contain on-site management offices and community space that will be used to provide social services, a computer learning center, a game room and on-site offices for medical personnel. 

Additional financing for Lincoln Park Village will be provided through Low Income Housing Tax Credits, the New Jersey Housing and Mortgage Finance Agency, and City of Newark HOME funds. Additional financing for Ocean Pointe will be provided by Low Income Housing Tax Credits, HOPE VI funding from the Jersey City Housing Authority, and HOME Express funds, healthcare assistance, transportation, and Meals on Wheels.

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.

Liberty Bell Bank
Liberty Bell Bank is a New Jersey-chartered commercial bank maintaining offices in Cherry Hill, Marlton, Moorestown, and Mt. Laurel, New Jersey.

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.