Affordable Housing Program Awardees

July 7, 2010

Contact: Eric Amig - (212) 441-6807
Brian Finnegan - (212) 441-6877

Federal Home Loan Bank of New York Awards $752,082 in Affordable Housing Grants in Batavia and the Village of Albion

Two projects will rehabilitate or create 67 units of affordable housing

Batavia, New York – The Federal Home Loan Bank of New York announced today the award of a $402,082 affordable housing grant to the United Memorial Medical Center to help finance the construction costs for the Jerome Senior Apartments project, which will create 37 apartments for low- and very low-income seniors in Batavia; and the award of a $350,000 affordable housing grant to the Rural Housing Opportunities Corp. to help finance the rehabilitation of the Beechwood Apartments, which will provide 30 units of housing for low- and very low-income families in the Village of Albion. Home Loan Bank members M&T Bank and Maple City Savings Bank submitted the applications for the funding.

“This funding will help transform unused space into homes for our seniors and preserve much-needed affordable family housing,” said Congressman Chris Lee (NY, 26) “I applaud the Federal Home Loan Bank of New York for providing these resources to serve Western New Yorkers in need.”

“The renovation of the former St. Jerome Hospital into affordable senior housing and outpatient health services is a significant project for United Memorial Medical Center and the Batavia community. We appreciate the opportunity to work with the Federal Home Loan Bank and Congressman Lee to bring additional resources to this project,” said M&T Bank Regional President Dan Burns, sponsor of the grant application for Jerome Senior Apartments.

“The Federal Home Loan Bank of New York has been proud to partner with our members for more than 20 years to help make affordable housing a reality in New Jersey, New York, Puerto Rico, the U.S. Virgin Islands and beyond,” said Alfred A. DelliBovi, president and CEO of the FHLBNY. “We are grateful to our elected officials for their leadership and support in Congress, which allows us to offer this program to the housing groups that are strengthening communities across the region.”

The $402,082 grant for the Jerome Senior Apartments will be used to help fund the construction of 37 apartments for low- and very low-income seniors.  The apartments will be located in a currently vacant portion of the former St. Jerome’s Hospital building.  The project is designed to promote a community environment, increase senior housing in Batavia and efficiently reuse vacant space.

The $350,000 grant for the Beechwood Apartments will be used to help fund the rehabilitation of 30 units of housing for low- and very low-income families. The rehabilitation will include the conversion of electric heat to forced-air gas heat, which will be more economical and energy-efficient for tenants.  Maple City Savings Bank submitted the application for the funding for the project.

Additional financing for the Jerome Senior Apartments will be provided by Low Income Housing Tax Credits, the New York State Energy Research and Development Authority, the Housing Trust Fund, and the Federal Home Loan Bank of Pittsburgh.  Additional financing for the Beechwood Apartments will be provided by USDA Rural Development funds, HOME funds, weatherization funds and the New York State Rural Rental Assistance Program.

These grants are part of a total of $29.7 million in AHP subsidies that the Federal Home Loan Bank of New York will award in conjunction with the approval of the first competitive application round of 2010.  In total, these grants will help to finance the creation of 54 housing projects that will generate 2,917 units of affordable housing in New Jersey, New York, Connecticut, Delaware, Maryland and Pennsylvania. Last year, the Federal Home Loan Bank System celebrated the 20th Anniversary of its Affordable Housing Program. In June 2010, the program was recognized by the National Housing Conference as its “Housing Person of the Year”. The Federal Home Loan Banks have distributed nearly $4 billion in AHP funds since 1990.  For more information on these grants, please visit www.fhlbny.com/news/pressrelease.htm.

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, $107 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.