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 $343,200 Affordable Housing Grant in Seneca Falls

LCD Seneca project will create 40 units of affordable housing.

Seneca Falls, New York — The Federal Home Loan Bank of New York announced today the award of a $343,200 affordable housing grant to Lakeview Mental Health Services, Inc. to help finance the construction costs of the LCD Seneca project, which will create 40 units of housing for low- and very low-income households, including households with an individual with a mental illness. First Niagara Bank, a Home Loan Bank member, submitted the application for the funding.

“I am pleased to see that Seneca County will be receiving this much needed grant funding for continued economic development.  Providing affordable housing for those that need it is imperative to creating a community of growth so that hardworking residents can raise families and afford to pay the bills while living safely and securely.  I pledge to continue my efforts to work with the Federal Home Loan Bank of New York and First Niagara Bank on these important projects in the future,” said U.S. Representative Michael Arcuri (NY-24)."

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.

“First Niagara is proud to partner with the Federal Home Loan Bank of New York to provide funding for supportive housing in Seneca Falls,” said Leisha Gordon, Vice President of Community Reinvestment at First Niagara Bank.  “Lakeview Mental Health Services, Inc. provides a valuable service to our community and we are delighted to support their efforts by having submitted the application on their behalf.”  

“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 $343,200 grant will be used towards the construction of 40 housing units for low- and very low-income households. Twenty-six of the units will be set aside for households with an individual with a mental illness.  These 26 units will be transitional housing units, with ongoing supportive services provided by Lakeview Mental Health Services, Inc. Residents will be provided with case management services, independent living skills training to promote self-sufficiency, employment training, social and recreational activities, and referrals to additional services, and will also be encouraged to actively participate in the tenant association. 

Additional financing will be provided by Low Income Housing Tax Credits, the Community Preservation Corporation, the New York State Office of Mental Health, and Infrastructure Development Demonstration Program funds.

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.

First Niagara Financial Group
First Niagara Financial Group, Inc. through its wholly owned subsidiary First Niagara Bank, had assets of $14.1 billion and deposits of $9.9 billion at September 30, 2009.  First Niagara Bank is a community–oriented bank providing financial services to individuals, families and businesses through 171 branches and five Regional market Centers across Upstate New York and Western Pennsylvania.  In July 2009, First Niagara announced its plans to acquire Harleysville National Corporation and its$ 5.6 billion in assets and 83 branches in the Philadelphia area, subject to regulatory and Harleysville shareholder approval.  For more information, visit www.fnfg.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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