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 $1.6 Million in Affordable Housing Grants in Canandaigua and Elmira

Three projects will create or rehabilitate nearly 150 units of affordable housing

Canandaigua, New York – The Federal Home Loan Bank of New York announced today the award of a $1,416,000 grant to Wilcox Lane Senior Citizens Housing Co., Inc. for the Wilcox Lane project; the award of a $170,000 grant to the Rural Housing Opportunities Corp. for the Thompsons Estates Phase II project; and the award of a $40,000 grant to the YWCA of Elmira and the Twin Tiers for its Transitional Housing project.  Home Loan Bank members The Canandaigua Trust Company and First Niagara Bank submitted the applications for the funding.

“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.”

“As a member of the Federal Home Loan Bank of NY, Canandaigua National Bank & Trust (CNB) is honored to be able to sponsor these important community projects which have been vital in supporting the availability of affordable senior housing in the Finger Lakes Region,” said Timothy A. Stone, vice president in the Commercial Services Division of Canandaigua National Bank & Trust Company, which submitted the application for the Wilcox Lane and Thompson Estates projects.  “CNB is the region’s only, local, full-service, community-owned financial institution serving the area since 1887.”

“This transitional housing project is one of many ways the YWCA of Elmira provides much needed resources to the community,” said Leisha Gordon, Vice President of Community Reinvestment at First Niagara Bank. “We are delighted to partner with agencies such as the YWCA and applaud their efforts to provide housing to those in need.”

The $1,416,000 grant for Wilcox Lane will help finance the rehabilitation of 118 units of housing for seniors in Canandaigua.  The current building was completed in 1972 and is in need of moderate renovation.  The project is located in a park-like setting with gardens and outdoor seating.

The $170,000 grant for the Thompson Estates Phase II project will help finance the construction of 28 units of housing for very low-income seniors.  Phase I of the project, which also received Federal Home Loan Bank of New York funding, involved the conversion of the former Thompson Hospital into 42 apartments for seniors.  This phase will include the demolition of two vacant buildings and the construction of a new housing complex.

The $40,000 grant for the YWCA of Elmira and the Twin Tiers Transitional Housing project will help finance the rehabilitation of an existing property owned by the YWCA.  This transitional housing project will provide shelter and supportive services for victims of domestic violence and their children who are displaced from their homes.  The two units will be affordable to very low-income families.

Additional financing for Wilcox Lane will be provided by the New York State Housing Finance Agency.  Additional financing for the Thompson Estates will be provided by the Division of Housing and Community Renewal’s HOME and Low Income Housing Tax Credit programs, Community Development Block Grant funds, and the Greater Rochester Housing Partnership.  Additional financing for the YWCA project will be provided by the New York State Housing Trust Fund.

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.