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 $660,000 Affordable Housing Grant in Rochester

Two projects will rehabilitate 70 units of affordable housing in Rochester.

Rochester, New York — The Federal Home Loan Bank of New York announced today the award of a $510,000 affordable housing grant to North East Area Development, Inc. to help finance Project Rebuild, the rehabilitation of 60 homes occupied by low- to moderate-income homeowners; and the award of a $150,000 affordable housing grant to the Providence Housing Development Corporation to help finance the Jefferson Avenue Apartments, a rehabilitation of five blighted residential properties which will create 10 apartments for very low-income households. M&T Bank, a Home Loan Bank member, submitted the application for the funding for both projects.

“Owning a home has always been part of the American Dream,” said Representative Louise Slaughter (NY-28). “Affordable housing for hardworking New York families is a top priority and I am proud of the steps the Federal Home Loan Bank of New York has taken to make housing more attainable and allow for the revitalization of neighborhoods during these difficult economic times.”

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.

“Many Rochester neighborhoods have older homes that require expensive repairs and updates. By working with the Federal Home Loan Bank, Representative Louise Slaughter and these two community organizations, we can help preserve these properties as safe, affordable housing for city residents,” said Daniel J. Burns, Rochester Region president for M&T Bank, which sponsored the Federal Home Loan Bank grant applications. 

“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 $510,000 grant will be used to help fund the rehabilitation of 60 homes occupied by low- to moderate-income homeowners in Rochester. Many of these homes were built before 1970 and contain asbestos and lead paint, and the cost of building materials and labor makes it very expensive for low- to moderate-income homeowners to make the necessary repairs. In addition, each household will be required to complete home maintenance classes and foreclosure prevention education as a condition of receiving the funding for home rehabilitation. 

The $150,000 grant will be used to help fund the gut rehabilitation of five blighted residential properties to create 10 apartments for very low-income households.  The rehab will consist of a complete interior and exterior renovation. The project is designed to preserve neighborhood housing stock for very low-income families and is consistent with the City of Rochester’s Consolidated Community Development Plan and supported by local elected officials. 

Additional funding for Project Rebuild will be provided by the Emergency Assistance Repair Program from the City of Rochester. Additional funding for the Jefferson Avenue Apartments will be provided by Small Projects Program and Urban Initiatives grants from the New York State Department of Housing and Community Renewal, a City of Rochester’s lead-based paint removal grant and a HOME award. 

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.

M&T Bank
M&T is a bank holding company with $69.9 billion in assets, whose banking subsidiaries, M&T Bank and M&T Bank, National Association, operate more than 800 branch offices in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware, New Jersey and the District of Columbia.

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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