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 $900,000 Affordable Housing Grant in Troy and Cohoes

Two projects will create or renovate nearly 100 units of affordable housing.

Troy, New York — The Federal Home Loan Bank of New York announced today the award of a $400,000 affordable housing grant to Joseph’s House & Shelter, Inc. to help finance the construction of Bert’s Place, which will provide permanent supportive housing for 20 homeless adults; and the award of a $500,000 affordable housing grant to The Community Builders to help finance the construction of the Cohoes Falls Apartments, which will provide 73 units of affordable housing for low- and very low-income families. Home Loan Bank members First Niagara Bank and M&T Bank submitted the applications for the funding.

“During these difficult economic times, it is important that we remember those who are least able to afford housing,” said Rep. Paul Tonko. “I am glad that our local banks could come together to help those most in need while improving the existing infrastructure.  Strengthening our local communities and rebuilding our economy while putting people back to work is my top priority, and this program does just that.” 

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 a community stakeholder, First Niagara is proud to partner with the Federal Home Loan Bank of New York to provide funding for the construction of supportive housing in the City of Troy,” said Leisha Gordon, Vice President of Community Reinvestment at First Niagara Bank, which submitted the funding application for Bert’s Place. “The Joseph’s House and Shelter, Inc. project represents a unique public and private collaboration to construct much-needed affordable housing for some of Troy’s most vulnerable citizens.”

“Working with the Federal Home Loan Bank to provide additional funding for the Cohoes Falls Apartments has allowed M&T Bank to build on our long and productive relationship with The Community Builders to provide more affordable housing options for residents of our communities,” said M&T Bank Regional President Michael T. Keegan.

“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 $400,000 grant will be used to help fund the construction costs for Bert’s Place, which involves the acquisition and demolition of a blighted property and the new construction of permanent supported housing for 20 chronically homeless adults. The building will be staffed 24 hours a day and social service support will be available seven days a week.  On-site support services will be provided to ensure that residents can develop skills for daily living, increased independence and economic stability.  Core supportive services to be provided include coordinated case management, financial management assistance, basic life skill assistance and employment assistance as well as referrals to treatment programs, health care, legal, educational and vocational services. 

The $500,000 grant for the Cohoes Falls Apartments will help finance construction costs for the rehabilitation of seven existing townhouse and walk-up buildings and the new construction of one building. Upon completion, the Cohoes Falls Apartments will provide housing for 73 very low- and low-income families in a project-based Section 8 family development.  The rehabilitation will address lead, radon and asbestos contaminants at the properties, and upgrade existing conditions to increase energy efficiency.

Additional financing for Bert’s Place will be provided by the New York State Homeless Housing Assistance Program, the New York City Office of Mental Health Supported Housing program, the Office of Temporary and Disability Assistance for SRO Support Services, and the U.S. Department of Housing and Urban Development Supportive Housing Program.

Additional financing for the Cohoes Falls Apartments will be provided by Federal and State Historic Tax Credits, Low Income Housing Tax Credits, New York State Energy Research and Development Authority grants, and the New York State Housing Trust Fund.

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.

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.

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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