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 $560,000 Affordable Housing Grant in Mount Vernon

Zion Court will create 28 units of family housing

Mount Vernon, New York – The Federal Home Loan Bank of New York announced today the award of a $560,000 affordable housing grant to the Greater Centennial Community Development Corp. to help finance the construction costs of the Zion Court project, which will provide 28 units of housing for moderate- and very low-income families through the rehabilitation of four buildings. Carver Federal Savings Bank, a Home Loan Bank member, submitted the application for the funding.

“The Affordable Housing Program grant announced today by the  Federal Home Loan Bank of New York will not only create 28 new, affordable homes for Mount Vernon’s families, but also transform a vacant property into housing that will help revitalize the surrounding neighborhood,” said Congressman Eliot L. Engel (NY, 17).

“As a community bank, Carver strives to remain a leader in facilitating community development opportunities through partnerships with organizations such as The Federal Home Loan Bank of New York,” said James Bason, Chief Lending Officer for Carver Federal Savings Bank. “During a time when the current economic climate has taken a significant toll on most families, hardworking residents need the opportunity to live in high quality housing at affordable rates.  Carver congratulates the Greater Centennial Community Development Corp for continuing their work towards stabilizing communities.”

“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 $560,000 grant will be used towards the construction costs of the Zion Court project, which involves the gut rehabilitation of four buildings and will create 28 units of housing for moderate- and very low-income households.  The development of this abandoned property will help to restore the neighborhood where the Greater Centennial Community Development Corp. has focused its housing efforts.  During the last 10 years, the organization has successfully developed apartments units and two homeownership developments for first-time homebuyers in the area.  The organization will offer residents of the neighborhood a variety of services free of charge, including crisis intervention, health screenings and education, AA and NA meetings and a variety of youth programs.

Additional financing will be provided by the Community Preservation Corporation and Westchester County.

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 Carver Bancorp, Inc.
Carver Bancorp, Inc. is the holding company for Carver Federal Savings Bank, a federally chartered stock savings bank. Carver Federal Savings Bank, the largest African- and Caribbean-American run bank in the United States, operates ten full-service branches in the New York City boroughs of Brooklyn, Queens and Manhattan. For further information, please visit the Company’s website at www.carverbank.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.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
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.