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 $969,500 in Affordable Housing Grants in Buffalo

Four projects will rehabilitate more than 100 units of affordable housing

Buffalo, New York – The Federal Home Loan Bank of New York announced today the award of a $400,000 grant to the Community Action Organization of Erie County for St. Martin Village; the award of a $195,000 grant to the Polish Community Center of Buffalo for the Anna Walentynowicz Apartments; the award of a $98,500 grant to Housing Opportunities Made Equal for the HOME Mixed-Use project; and the award of a $276,000 grant to Cazenovia Recovery Systems, Inc. for Amherst Station.  In total, the four grants will help to create or rehabilitate 114 units of affordable housing in Buffalo.  Home Loan Bank members First Niagara Bank and M&T Bank submitted the applications for the funding.

“The Federal Home Loan Bank of New York, First Niagara Bank and M&T Bank have long supported affordable housing initiatives across Buffalo,” said Congresswoman Louise Slaughter (NY, 28). “These grants will provide nearly $1 million to help preserve more than 100 affordable homes in the community.”

“We are delighted to have played a role in providing the funding to meet the affordable housing needs of families in the areas where we do business,” said Leisha Gordon, Vice President of Community Reinvestment at First Niagara Bank, which submitted the funding applications for the St. Martin Village, HOME Mixed-Use and Amherst Station projects. “The development of these projects represents the vision, hard work and perseverance of our not-for-profit partners and we applaud their efforts.”

“These grants in total bring almost $1 million of additional financing for affordable housing projects in Buffalo, including $195,000 to rehab the Anna Walentynowicz Apartments on the East Side. We appreciate the effort of the Federal Home Loan Bank and Rep. Slaughter in helping our community to move forward with these projects,” said Brad J. Dossinger, vice president and regional community reinvestment manager for M&T Bank, which submitted the funding application for the Anna Walentynowicz 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 $400,000 grant for St. Martin Village will help finance the rehabilitation of 24 apartments and the construction of 36 townhomes to create affordable housing for very low-income households.  Nine of the units will be set aside for households with a member who is recovering from alcohol or substance abuse.  These households will be referred by a local social service agency, which will provide ongoing services.

The $195,000 grant for the Anna Walentynowicz Apartments will help finance the rehabilitation of an existing 20-unit affordable housing development that was completed in 1986 and is now in need of renovations.  The apartments house low- and very low-income households. 

The $98,500 grant for the HOME Mixed-Use project will help finance the acquisition and rehabilitation of two vacant buildings which will create 10 apartments for very low-income households.  Two of the units will be set aside for homeless households who have experienced episodes of domestic violence.  The sponsor will provide on-site counseling and supportive services.

The $276,000 grant for Amherst Station will help finance the conversion of a commercial building into 24 units of housing for very low-income households.  Four of the units will house individuals in recovery from a substance abuse problem.  These residents will receive comprehensive services from the sponsor, including case management and counseling.

Additional financing for St. Martin Village will be provided by HOME funds from the New York State Division of Housing and Community Renewal, Low Income Housing Tax Credits, HOME and other funds from the City of Buffalo, and a conventional loan from Key Bank.  Additional financing for the Anna Walentynowicz Apartments will be provided by the Polish Community Center of Buffalo.  Additional financing for the HOME Mixed-Use project will be provided by the New York State Division of Housing and Community Renewal and City of Buffalo HOME funds.  Additional financing for Amherst Station will be provided by City of Buffalo HOME funds, the New York State Energy Research and Development Authority, Low Income Housing Tax Credits, and New York State Urban Initiatives funds.

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.

First Niagara Financial Group
First Niagara Financial Group, Inc. through its wholly owned subsidiary, First Niagara Bank, N.A., has $ 20 billion in assets, 255 branches and $ 14 billion in deposits.  First Niagara Bank is a community-oriented bank providing financial services to individuals, families and businesses across Upstate New York and Pennsylvania.  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, $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.