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 $532,000 Affordable Housing Grant in Paterson
Two projects will create 90 units of affordable housing for Paterson families.
Paterson, New Jersey — The Federal Home Loan Bank of New York announced today the award of a $400,000 affordable housing grant to the Housing Authority of the City of Paterson to help finance construction costs for the Alexander Hamilton Phase 1 project, which will partially replace a public housing development and create 79 units of affordable rental housing for low- and very low-income families; and the award of a $132,000 affordable housing grant to Habitat for Humanity of Paterson, Inc. to help finance the construction of 11 homes for moderate-, low- and very low-income families. Columbia Bank, a Home Loan Bank member, submitted the applications for the funding of both projects.
“The housing market has been tough in recent years. But no matter how low housing prices may get in New Jersey, we still need help in cultivating affordable housing,” said U.S. Rep. Bill Pascrell, Jr. (NJ-8), a member of the House Ways and Means Committee and a former Paterson mayor. “You can’t put a price tag on the real good these grants will provide. At least 90 people will have a place to call home – a base upon which they can build the rest of their lives.”
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.
“Columbia Bank is dedicated to the communities we serve and we are pleased to be able to partner with the Federal Home Loan Bank of New York to help support the Paterson community with these two grants,” said Raymond G. Hallock, President and CEO of Columbia 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 Garden State for years to come.”
The $400,000 grant will be used to help fund the rehabilitation costs for the Alexander Hamilton Phase 1 project, which involves the construction of 79 units of affordable rental housing for very low- and low-income families. This construction will partially replace a public housing development on the project site that will be demolished. Families wishing to return to the development will be given first priority for the new housing. The project will consist of one-, two-, three-, and four-bedroom apartments in a townhouse development.
The $132,000 grant will be used to help fund the construction costs of the Paterson Habitat for Humanity project, which involves the construction of 11 homes for very low-, low-, and moderate-income families in a Paterson neighborhood where Habitat for Humanity of Paterson, Inc. has focused its building efforts for the past 20 years. This project will continue to add to the revitalization of the neighborhood. The prospective homeowner families agree to complete 400 hours of “sweat equity” by helping to build their house and working on other Habitat projects. They will also be required to participate in a homeowner training program, attend monthly homeowner association meetings, and save towards their down payment and closing costs. Very low-income working families will be able to afford these Habitat homes, and the investment in “sweat equity” and homeownership training classes will help to reduce foreclosures.
Additional funding for the Alexander Hamilton Phase 1 project will be provided by City of Paterson Regional Contribution Agreement funding and the Housing Authority Replacement Housing Fund, the New Jersey Housing and Mortgage Finance Agency Special Needs Housing Trust Fund and Tax Credit Assistance Program, and Low Income Housing Tax Credits.
Additional funding for the Habitat for Humanity project will be provided by corporate and foundation support and individual contributions.
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.
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 over 330 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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