Affordable Housing Program Awardees

January 20, 2010

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

Federal Home Loan Bank of New York Awards $880,048 Affordable Housing Grant in the Bronx

Two projects will create or renovate nearly 75 units of affordable housing in the Bronx.

Bronx, New York — The Federal Home Loan Bank of New York announced today the award of a $360,000 affordable housing grant to The Bridge, Inc. to help finance the construction of Bridge Gardens, which will provide 18 units of affordable housing for very low-income, mentally ill homeless adults; and the award of a $520,048 affordable housing grant to Geel Community Services to help finance the construction of the Geel Grand Avenue Residence, which will provide 56 units of affordable housing for low- and very low-income individuals. Home Loan Bank members HSBC Bank USA and M&T Bank submitted the applications for the funding.

“The Affordable Housing Program grants announced today by the Federal Home Loan Bank of New York, HSBC and M&T Bank will go far in helping to provide safe, supportive housing in the Bronx for those who need it most,” said Congressman José E. Serrano (NY, 16).

In 2009, the Federal Home Loan Banks marked the 20th anniversary of the 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, the AHP has supported nearly 1,200 projects with grants totaling more than $330 million, creating more than 48,000 units of affordable housing and generating nearly $6 billion in total development costs.

“HSBC's involvement in this affordable housing venture underscores our commitment to being an active member in the communities we serve. With over 375 bank branches in New York State, it is important that HSBC be involved in projects that help bring much-needed affordable housing to these communities,” said Kathleen Rizzo Young, Senior Vice President of HSBC Bank USA.

“M&T Bank is proud to partner with the Federal Home Loan Bank of New York to provide additional capital for Geel Community Services’ efforts to build decent and affordable housing in the Bronx,” said Steven Flax, Vice President at M&T Bank, which submitted the application for the funding for the Geel Grand Avenue Residence.

“For the past two decades, the Affordable Housing Program has been one of the nation’s most successful housing initiatives because of the partnership between the Home Loan Bank, our members, community organizations and elected officials,” said Alfred A. DelliBovi, president and CEO of the Federal Home Loan Bank of New York. “As we celebrate the start of a new decade, we look forward to continuing this partnership and helping to build stronger communities across the Empire State for years to come.”

The $360,000 grant will be used to help fund the construction of 18 housing units for very low-income, mentally ill homeless adults.  Bridge Gardens will be constructed on vacant land in a neighborhood suffering from blight and will increase the supply of affordable housing in the neighborhood while assisting in the neighborhood’s revitalization. An on-site case manager will provide guidance for residents, which consists of daily living skills training covering housekeeping, cooking, budgeting and other skills that promote independent living. Supportive services will be available 24-hours per day, 7 days a week.  Other on-site programs will include educational training and employment assistance. 

The $520,048 grant for the Geel Grand Avenue Residence will be used to help fund the construction of 56 studio apartments for very low- and low-income individuals. Thirty-four units will be reserved for homeless individuals exiting the shelter system who are living with severe and persistent mental illness. The mentally ill tenants will be referred by the New York City Department of Homeless Services. Geel Community Services will coordinate on-site supportive services for these tenants, which will include case management, crisis intervention, medication management, life skills training and employment training.  Other tenants will be referred by local community-based organizations. 

Additional financing for Bridge Gardens will be provided by the Department of Housing and Urban Development Section 811 Program and the New York State Homeless Housing Assistance Program.

Additional financing for the Geel Grand Avenue Residence will be provided by the New York City Department of Housing Preservation and Development, the Supportive Housing Loan Program, and Low Income Housing Tax Credits.

These grants are part of a total of $16 million in AHP subsidies that the Federal Home Loan Bank of New York has awarded in conjunction with the approval of the second competitive application round of 2009. The grants announced today will help to finance the creation of 37 housing projects that will generate 1,901 units of affordable housing in New Jersey, New York, Maryland and Pennsylvania. In August 2009, the Federal Home Loan Bank of New York awarded grants for the first application round of 2009 totaling $16 million to fund 39 housing projects that will generate 1,545 units of affordable housing. For more information on these grants, please click here.

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.

HSBC Bank USA, N.A.
HSBC Bank USA, N.A. has more than 470 bank branches throughout the United States, with over 375 in New York State. The Bank also operates in Florida, California, Washington, D.C. Pennsylvania, New Jersey, Delaware, Oregon, Washington, Maryland, Illinois, Connecticut and Virginia. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., an indirectly-held, wholly-owned subsidiary of HSBC North America Holdings Inc., one of the nation's largest bank holding companies by assets. Deposits in the United States are offered by HSBC Bank USA, N.A. Member FDIC.

M&T Bank
M&T Bank Corporation, founded in 1856, is one of the top 20 bank holding companies in the nation, with more than 750 branch offices in New York, Pennsylvania, Delaware, Maryland, Washington D.C., Virginia and West Virginia. More information is available at www.mtb.com.

Federal Home Loan Bank of New York
The Federal Home Loan Bank of New York is a Congressionally chartered, $110 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 330 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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