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 $180,000 Affordable Housing Grant in Chester

Green Meadows Preservation Program will maintain 36 units of affordable housing.

Chester, New York — The Federal Home Loan Bank of New York announced today the award of a $180,000 affordable housing grant to the Hudson Valley Housing Development Fund, Inc. to help finance the rehabilitation costs of the Green Meadows Preservation Program, which will preserve 36 units of affordable family housing in Chester. Ulster Savings Bank, a Home Loan Bank member, submitted the application for the funding.

“This Affordable Housing Program grant from the Federal Home Loan Bank of New York and Ulster Savings Bank will help to ensure that more than 30 units of housing will remain affordable for Chester’s families,” said Representative John Hall (NY, 19). “Now more than ever, it is vital that we keep families in homes that they can afford.”

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.

“As an active member of our communities, Ulster Savings Bank is proud to partner with Congressman Hall, the Federal Home Loan Bank of New York and the Hudson Valley Housing Development Fund to help ensure that this family housing remains affordable.  We understand the ever growing need for quality affordable housing in our communities.  This project will help meet that need and provide a facility that the entire Chester community will welcome,” said Stephen Hack, Vice President and CRA Officer at Ulster Savings Bank.

“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 $180,000 grant will be used towards the rehabilitation costs of the Green Meadows Preservation Program, which involves the acquisition of a property that contains 36 units of affordable family housing. Without this acquisition by the Hudson Valley Housing Development Fund, the housing would likely be converted to market-rate rentals or condominiums, resulting in increased rents and family relocations. This neighborhood has seen extraordinary growth, and it would be difficult to reproduce affordable units in this area. The sponsor will acquire the property, temporarily relocate the tenants, and complete substantial rehabilitations to each apartment while keeping the units affordable.

Additional financing will be provided by a U.S. Department of Agriculture Rural Development mortgage, Low Income Housing Tax Credits, a Weatherization grant, the Infrastructure Development Demonstration Program, and the New York State Energy Research and Development Agency.

This grant is 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.

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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