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 $2.3 Million in Affordable Housing Grants in Rochester

Five projects will create or rehabilitate more than 420 units of affordable housing

Rochester, New York – The Federal Home Loan Bank of New York announced today the award of a $772,200 grant to the Rochester Housing Authority for the Voters Block Community project; the award of a $165,966 grant to Pathstone, Inc. for the Mildred Johnson Estates Phase II project; the award of a $315,000 grant to the Isla Housing and Development Corp. for the Corpus Christi Senior Apartments; the award of a $180,000 grant to the Greater Rochester Housing Partnership for the HOME Rochester 2010-2012 project; and the award of a $900,000 grant to FIGHT Village Housing Development Fund Co., Inc. for the FIGHT Village project.  Home Loan Bank members First Niagara Bank, M&T Bank and HSBC Bank submitted the applications for the funding.

“The Federal Home Loan Bank of New York’s Affordable Housing Program has been an important part of the Rochester community for more than 20 years,” said Congresswoman Louise Slaughter (NY, 28). “The grants announced today will create new housing opportunities in Rochester while also ensuring that much-needed affordable housing is kept in the Rochester community.”

“As a community stakeholder, it is gratifying to know that we are able to help agencies secure the funding they need to create safe and affordable housing in our communities,” said Leisha Gordon, Vice President of Community Reinvestment at First Niagara Bank, which submitted the funding applications for the Voters Block Community and Mildred Johnson Estates projects. “The FHLBNY AHP program allows both the Rochester Housing Authority and Pathstone, Inc., in partnership with First Niagara, to continue making a positive difference in the City of Rochester.”

“These grants in total bring more than $2.3 million of additional financing for affordable housing projects in Rochester, with the largest grant being just under $1 million for the FIGHT Village project downtown. We appreciate the effort of the Federal Home Loan Bank and Rep. Slaughter in helping our community to move forward with these projects,” said M&T Bank President Dan Burns.  M&T Bank submitted the funding applications for the Corpus Christi Senior Apartments and FIGHT Village projects.

“HSBC is pleased to join with our community partners to participate in the Federal Home Loan Bank's Affordable Housing Program,” said Kathleen Rizzo Young, Senior Vice President of Community Development for HSBC, which submitted the application for the HOME Rochester 2010-2012 project. “These projects, like the many this program has previously made possible, will have a tangible, visible impact on the community.”

“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 $772,200 grant for the Voters Block Community project will help finance construction on vacant lots and rehabilitation of vacant structures that will create 92 units of housing for middle- to very low-income families.  The neighborhood is within the City of Rochester’s Focused Investment Strategy area, and the goal of the strategy is to improve the neighborhood within a three-to-five year timeframe.

The $165,966 grant for the Mildred Johnson Estates Phase II project will help finance the construction of 20 single-family rental homes in the City of Rochester, all of which will be made available to low- and very low-income families.  The tenants will be given the opportunity to purchase their homes at the end of the fifteen-year compliance period.

The $315,000 grant for the Corpus Christi Senior Apartments will help finance the conversion of a vacant building into a 42-unit senior apartment complex.  This conversion and rehabilitation will removed a blighted building from the neighborhood and provide affordable housing for very low-income seniors.

The $180,000 grant for the HOME Rochester 2010-2012 project will be used to help finance the acquisition and rehabilitation of properties that are currently a blighting influence of some of the City of Rochester’s neighborhoods and are a drain on the city’s tax base.  The project will significantly revitalize and stabilize neighborhoods and provide 30 low- and very-low income families with the opportunity to become homeowners.  All homebuyers will receive closing cost assistance of up to $6,000 from the City of Rochester.

The $900,000 grant for FIGHT Village will help finance the rehabilitation of 245 multi-family housing units and preserve 235 of these units as affordable housing for very low-income families.  The project is in a Smart Growth Area where all utilities are provided to the site.  The goal of the sponsor is to enable low-income working families to become and remain economically self-sufficient.

Additional financing for the Voters Block Community project will be provided by the New York State Division of Housing and Community Renewal HOME funds, Low Income Housing Tax Credits, the City of Rochester, and the Rochester Housing Authority.  Additional financing for the Mildred Johnson Estates will be provided by the New York Division of Housing and Community Renewal Credit Assistance Program, the Housing Trust Fund, the Greater Rochester Housing Partnership, and City of Rochester HOME funds.  Additional financing for the Corpus Christi Senior Apartments will be provided by the New York State Housing Trust Fund and City of Rochester HOME funds.  Additional financing for the HOME Rochester 2010-2012 project will be provided by the Rochester Housing Development Fund Corporation, the New York State Affordable Housing Corp. and Division of Housing and Community Renewal, and City of Rochester HOME and Closing Cost Assistance funds.  Additional financing for FIGHT Village will be provided by tax credits from the New York State Housing Finance Agency, loans from the City of Rochester and the U.S. Housing and Urban Development 236 Program, and weatherization funds from the Division of Housing and Community Renewal.

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.

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.