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 $1.2 Million in Affordable Housing Grants in Elizabeth and Union

Two projects will create or rehabilitate 81 units of affordable housing

Elizabeth, New Jersey – The Federal Home Loan Bank of New York announced today the award of a $1.2 million affordable housing grant to the YMCA of Eastern Union County to help finance the renovation of the YMCA’s main building, which contains 77 single-room-occupancy housing units; and the award of a $23,750 affordable housing grant to the Community Access Institute to help finance the rehabilitation of the Salem Road project, which will provide housing for four very low-income individuals with disabilities. Home Loan Bank members RSI Bank and Investors Savings Bank submitted the applications for the funding.

“The Federal Home Loan Bank of NY through its Affordable Housing Program has a strong two-decade history of providing safe, affordable housing to low-income families and individuals,” Congressman Donald Payne (NJ, 10) states.  “It understands the connection between the economic vitality of communities and helping people obtain a decent home.  These Affordable Housing Program grants, announced today, for the YMCA of Eastern Union County and the Community Access Institute will create over 80 affordable housing units for many worthy individuals and will economically ripple throughout the community.”

“RSI Bank has actively supported the New Jersey community for more than 150 years. Through our partnership with the Federal Home Loan Bank of New York, we are proud to support the YMCA of Eastern Union County’s rehabilitation efforts,” said D. Russell Taylor, President and CEO of RSI Bank, which submitted the funding application for the YMCA of Eastern Union County project. “We look forward to continuing to be actively involved in the Federal Home Loan Bank of New York’s Affordable Housing Program.”

“We are very pleased to be working with the Federal Home Loan Bank of New York and its partners to renovate the Salem Road Project in Union,” said Kevin Cummings, President and CEO of Investors Savings Bank. “Improving the lives of the people in our communities is a fundamental part of our core values. This project will provide much-needed relief to those in need of safe, clean housing.”

“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 $1.2 million grant for the YMCA Elizabeth Branch project will help improve all building systems and facilities.  The building contains 77 single-room-occupancy housing units, 55 of which are reserved for very low-income single men, some of whom were formerly homeless and some who are disabled.  Supportive services and empowerment activities are an important component of the sponsor’s housing projects, and most of these services will be provided on-site.

The $23,750 grant for the Salem Road project will help finance the gut rehabilitation of a home which will provide housing for four very low-income individuals with disabilities.  The project is designed to increase the supply of accessible, affordable housing for people with disabilities and integrate them into a community setting.  By rehabilitating a vacant property, the project will also help revitalize the neighborhood.

Additional financing for the YMCA project will be provided by City of Elizabeth HOME funds, the Union County HOME program, the New Jersey Casino Reinvestment Development Authority, New Jersey Appropriation Funding, and the U.S. Department of Housing and Urban Development Supportive Housing Program.  Additional financing for the Salem Road project will be provided by the Community Access Institute and The Healthcare Foundation of New Jersey.

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.

About RSI Bank
RSI was incorporated on February 19, 1851, and it opened its doors to the public on March 12, 1851. As one of New Jersey's oldest financial organizations, RSI has endured and even thrived through challenging periods in our country's history including the Civil War, World War I, World War II, the Great Depression of the 1930's and the banking crisis of the 1980's, when U.S. banks were failing at record rates. Our capital strength along with the support of the community we serve, has allowed RSI Bank to remain a fiscally solid provider of financial services and products. Our mission has changed little since 1851, which is, “to provide quality financial products and services at fair and reasonable prices to the community we serve.”

With a foundation based upon honesty and integrity, we have always attempted to provide our customers with quality products at fair prices, while providing them with the courtesy and professionalism they have a right to expect. With a proud history and reputation for building solid relationships, we look forward to meeting you and serving your financial needs.

For additional information please call the Corporate Communications Department at 732.587.1515, or visit us on the web at RSIbanking.com.

About Investors Savings Bank
Investors Savings Bank has been serving New Jersey since 1926. With $8.7 billion in assets and a network of 66 branches in ten Garden State counties, the Bank delivers personalized and friendly services and products tailored to the needs of its customers. The range of products includes mortgages, home equity loans and lines of credit, CDs, and a variety of checking and savings accounts.

Serving New Jersey’s business community, the Bank provides commercial real estate loans, lines of credit and structured financing as well as sweep accounts and checking, deposit and escrow services. Investors’ commercial banking services are offered to professional services firms, municipalities, small and middle market companies, commercial and industrial firms and other businesses. Investors Savings Bank is a member of the FDIC and an Equal Housing Lender.
 
For more information about Investors Savings Bank, contact the Bank at 1.800.252.8119 or visit www.isbnj.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.