Affordable Housing Program Awardees

January 26, 2011

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

FHLBNY Awards $2.6 Million in Affordable Housing Grant in Hamilton and Carthage

Two projects will rehabilitate and preserve more than 320 units of affordable housing

Hamilton, New York — The Federal Home Loan Bank of New York announced today the awards of a $699,493 grant to Mid-York Senior Homes to help finance the rehabilitation costs of the Madison Lane Apartments project, which will rehabilitate a 72-unit facility for moderate- to very low-income seniors and individuals with disabilities; and a $1.9 million grant to Snow Belt Housing to help finance the North Country 8 Star Redevelopment project, which will preserve 254 affordable homes on scattered sites across Franklin, Jefferson and St. Lawrence counties. Home Loan Bank members Alliance Bank, N.A. and M&T Bank submitted the applications for the funding.

“I applaud the efforts of all those who made this Affordable Housing Program grant possible,” said Congressman Bill Owens (NY-23). “Creating affordable housing for upstate New York is important during these tough economic times and this grant will go a long way in helping to improve the lives of more than 320 households in Madison, Franklin, Jefferson and St. Lawrence counties.”

“Alliance Bank is pleased to partner with Mid-York Senior Homes and The Federal Home Loan Bank on the Madison Lane Apartments project,” said Steven G. Cacchio, Senior Vice President of Retail Banking Sales and Service at Alliance Bank. “This grant will help support the needs of the individuals residing at this facility, and the mission of Mid-York Senior Homes.”

“M&T has a long history of being involved in our communities and working with the Federal Home Loan Bank to obtain funding for affordable housing projects. And this $1.9 million grant represents a major investment to rehabilitate and preserve 254 affordable housing units in Jefferson, St. Lawrence and Franklin counties,” said M&T Bank Regional President Allen Naples.”

“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 $699,493 grant will be used towards the rehabilitation of the facility. The project provides much-needed affordable housing to elderly residents, the majority of whom have incomes below 50 percent of the area median income. The rehabilitation will include the installation of fiber cement siding, as well as ADA-compliant bathroom upgrades and other accessibility upgrades throughout the buildings. Additional financing will be provided from the building’s reserve funds and Weatherization Assistance Program.

The $1.9 million grant for the North Country 8 Star Redevelopment project will help fund the preservation of 254 units of existing affordable housing for families and senior citizens. The units are located in Jefferson, Franklin and St. Lawrence counties. Currently, 92 percent of the units are occupied by very low-income households. Additional financing will be provided by the sale of Low Income Housing Credits, NYHomes tax exempt bonds, USDA Rural Development Program funds, Weatherization Assistance Program funds, deferred developer fees and existing project reserves. M&T Bank 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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