Affordable Housing Program Awardees

January 26, 2011

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

FHLBNY Awards $1.8 Million in Affordable Housing Grants in Atlantic City and Vineland

Two projects will rehabilitate more than 100 affordable homes for very low-income households

Atlantic City, New Jersey – The Federal Home Loan Bank of New York announced today the awards of a $1.55 million grant to the Atlantic City Rescue Mission to help finance the ACRM Transitional Housing project, which will rehabilitate 14 vacant properties which will provide 78 units of transitional housing in Atlantic City; and a $275,000 grant to the City of Vineland to help finance the City of Vineland Residential Rehab Program, which will rehabilitate the homes of 25 very low-income homeowners in Vineland.  Home Loan Bank members Cape Bank and Capital Bank of New Jersey submitted the applications for the funding.

“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.”

“Cape Bank is honored to sponsor the ACRM for this important grant. We are committed to supporting the Atlantic City Rescue Mission in the battle against homelessness,” said Robert J. Boyer, EVP/COO of Cape Bank.  The Atlantic City Rescue Mission is a designated community partner of the CapeBank Charitable Foundation. The partnership includes a multi-year commitment of resources.

“From the day Capital Bank opened for business we have taken very seriously our responsibility to serve all parts of our community, including the less-fortunate.  We were pleased to sponsor the City of Vineland's application for AHP funds to support its Residential Rehab Program.  This program will help to revitalize neighborhoods by providing financial assistance to those in need, resulting in long term homeownership stability.  It will have a direct and meaningful impact on the quality of life of 25 families in Vineland.  We're proud to play a small part in helping so many very low-income homeowners right here in our backyard,” said David J. Hanrahan, President/CEO of Capital Bank of New Jersey.

The $1.55 million grant for the ACRM Transitional Housing project will help fund the acquisition and rehabilitation of 14 vacant properties which will provide transitional housing for 78 very low-income individuals. The residents will be men and women recovering from drug and alcohol addiction, and the sponsor will provide a residency-based programs aimed at breaking the cycle of drug and alcohol dependency, teaching life skills, and providing residents with supportive services and aftercare in order to obtain vocational skills and maintain long-term, sustained, independence. Additional financing will be provided by a conventional mortgage, sponsor equity and fundraising. Cape Bank submitted the application for the funding for the project.

The $275,000 grant for the City of Vineland Residential Rehab Program will help fund the program’s rehabilitation efforts. The program will provide interest-free loans to income-eligible to 25 very low-income homeowners to rehabilitate their homes. Participants in the program will come from a current waiting list of eligible residents. Additional financing will be provided by the U. S. Department of Housing and Urban Development. Capital Bank of New Jersey submitted the application for the funding for the project.

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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