Affordable Housing Program Awardees

January 26, 2011

Contact: Eric Amig - (212) 441-6807
Brian Finnegan - (212) 441-6877

FHLBNY Awards $42,000 Affordable Housing Grant in Albany

South End Renewal Project will create two single-family homes and rehabilitate a third home

Albany, New York — The Federal Home Loan Bank of New York announced today the award of a $42,000 grant to Habitat for Humanity of the Capital District to help finance the construction and rehabilitation costs of the South End Renewal Project, which will create two single-family homes and rehabilitate a third home for very low-income families. M&T Bank, a Home Loan Bank member, submitted the application for the funding.

“The grant announced today by the Federal Home Loan Bank of New York and M&T Bank will create new homeownership opportunities for families in Albany,” said Congressman Paul D. Tonko (NY, 21). “These organizations and the Affordable Housing Program have consistently been strong supporters of affordable housing in Albany. I commend their efforts to create a partnership which is making the dream of homeownership attainable for low-income families throughout our region.”

“This grant from the Federal Home Loan Bank will assist us in continuing our commitment to revitalize Albany's South End neighborhood,” said Albert De Salvo, president of Capital District Habitat for Humanity and community reinvestment officer for M&T Bank. “Affordable housing for low-income working families cannot be built without partnerships from the public and private sector. Our Habitat affiliate continually works to establish new partnerships and maintain long standing ones, and I am proud to say that Habitat's partnership with M&T Bank and the Federal Home Loan Bank has been strong and productive for years.”

“Our success directly affects our ability to provide this funding – the better we perform, the more of an impact we are able to make on affordable housing initiatives across the region,” said Alfred A. DelliBovi, president and CEO of the FHLBNY. “I am proud to announce that, as a result of our continued strong performance, we awarded a record amount of Affordable Housing Program funds in 2010. Creating affordable housing is the work of many hands, and for more than 20 years the Federal Home Loan Bank of New York has been honored by the opportunity to support the creation of safe, decent and affordable housing across our region and across the country. We thank all of our partners – the local lenders, the housing groups and our elected leaders in Congress – for their continued support of the communities they serve, and of the Affordable Housing Program.”

The $42,000 grant will be used to provide mortgage buydown and closing cost assistance to eligible households. The three homes will be sold to very low-income families that will be required to invest a very small down payment and 350 hours of “sweat equity” on a Habitat project.

Additional financing will be provided by the Coins Foundation, a City of Albany Community Development Block Grant, the Capital District Community Loan Fund and the United Methodist Church.

The grant is part of a record $32.6 million in Affordable Housing Program subsidies that the Federal Home Loan Bank of New York will award in conjunction with the approval of the second competitive application round of 2010. In total, these grants will help to finance 62 housing projects which will generate 2,813 units of affordable housing, including more than 2,100 units of very low-income housing, in New Jersey, New York and Pennsylvania. Last year, the Federal Home Loan Bank System celebrated the 20th Anniversary of its Affordable Housing Program. In June 2010, the Affordable Housing Program was recognized by the National Housing Conference as its “Housing Person of the Year”, and, in December 2010, the Federal Home Loan Bank of New York was recognized at the New York Housing Conference and National Housing Conference’s Annual Awards Luncheon for its continuing contributions to affordable housing. The Federal Home Loan Banks have distributed nearly $4 billion in AHP funds since 1990. For more information on today’s grants, please click here.

The Federal Home Loan Bank System’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.

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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