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 $705,000 Affordable Housing Grant for Delanco Seniors

Two projects will bring 45 units of affordable housing to Delanco.

Delanco, New Jersey — The Federal Home Loan Bank of New York announced today the award of a $305,000 affordable housing grant to Zurbrugg Partnership, LLC to help finance the rehabilitation of Zurbrugg Mansion, which will provide 25 units of affordable housing for low- and very low-income seniors; and the award of a $400,000 affordable housing grant to Living Springs Senior Residence, LLC to help finance the construction of the Living Springs Manor, which will provide 20 units of affordable housing for developmentally and/or physically disabled and homeless veterans in an independent living facility. Home Loan Bank members Cornerstone Bank and Sun National Bank submitted the applications for the funding.

“Now more than ever, it is vital that we provide safe, affordable housing for those seniors who need it most,” said Representative John Adler (NJ, 3). “This funding from the Federal Home Loan Bank of New York, Cornerstone Bank and Sun National Bank will make a critical difference in the lives of Delanco seniors.”

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.

“We are proud to partner with the Federal Home Loan Bank of New York to support the rehabilitation efforts to turn this historic structure into affordable housing that will continue to strengthen the community,” said Michael Madison, Vice President at Cornerstone Bank, which submitted the application for the funding for Zurbrugg Mansion.

“Sun National Bank has provided affordable housing opportunities for 25 years and it’s through projects like Living Springs Manor that we demonstrate our core commitment to local communities and residents, “said Mariluz Gonzalez, Vice President and Director of CRA and Community Development. 

“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 Garden State for years to come.”

The $305,000 grant will be used to help fund the rehabilitation costs for the Zurbrugg Mansion project, which involves the conversion of a former nursing home into 25 apartments for low- and very low-income senior citizens. The structure is a brick and stone mansion that was built in 1910.  The mansion will undergo a substantial historic rehabilitation.  When completed, the mansion will provide the only low- and very low-income age-restricted housing units in Delanco Township.    

The $400,000 grant for the Living Springs Manor will be used to help fund the construction of an independent living facility for developmentally disabled, physically disabled and homeless veterans. The project will provide homes for 20 very low-income households in a new two-story building of one-bedroom apartments. The project will include an on-site property management office and a well-rounded supportive services program with options available to meet the residents’ individual needs. The residents will be provided with on-site social and medical services, and 24-hour security within a protected campus environment.

Additional financing for Zurbrugg Mansion will be provided by the New Jersey Department of Community Affairs Balanced Housing Program, Burlington County HOME funds, Delanco Township Housing Trust Funds, and historic tax credits.

Additional financing for the Living Springs Manor will be provided by the New Jersey Housing and Mortgage Finance Agency, Tax Credit Assistance Program funds, 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.

Cornerstone Bank
Cornerstone Bank is a New Jersey state chartered commercial bank headquartered in Mount Laurel, New Jersey.  The Bank provides a broad range of lending, deposit and financial products to businesses and professionals.  The Bank commenced operations on October 4, 1999, and conducts business from its Main office in Mount Laurel and from six additional, New Jersey branch offices located in Medford, Mount Laurel, Burlington, Cherry Hill, Voorhees, and Moorestown. 

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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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.