Affordable Housing Program Awardees

January 26, 2011

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

FHLBNY Awards $3.8 Million in Affordable Housing Grants in Newark, Rahway and Roselle

Seven projects will create or rehabilitate nearly 300 units of affordable housing

Newark, New Jersey – The Federal Home Loan Bank of New York announced today the awards of a $1.35 million grant to Foresight Affordable Housing, Inc. to help finance the Baxter Park South project, which will create 90 units of rental housing for low- and very low-income families; an $825,000 grant to Life Management, Inc. to help finance The Plaza at Springfield Village, which will create 49 units of housing for low- and very low-income families and individuals; a $510,000 grant to Episcopal Community Development to help finance the Rosetta Commons project, which will create 51 homes for very low-income families; a $480,000 grant, also to Episcopal Community Development, for the Kinship Housing Project, which will create 24 units of affordable housing; a $600,000 grant to Myers Senior Residence, Inc. to help finance the Jack & Margaret Myers Senior Residence, which will create 51 units of senior housing; a $95,000 grant to the Community Access Institute to help fund the Chestnut Street project, which will create 16 affordable housing units; and a $29,750 grant, also to the Community Access Institute, to help fund the Cristiani Street project, which will rehabilitate five units of affordable housing.  Home Loan Bank members Liberty Bell Bank, Valley National Bank, The Bank of Princeton, RSI Bank, and The Provident Bank submitted the applications for the funding.

“For more than 20 years, the ‘Affordable Housing Program’ has provided funding for affordable housing initiatives in Newark,” said Congressman Donald M. Payne (NJ-10).  “In these tough economic times, many families and communities are suffering as a result of the current housing crisis.  The grants announced today by the Federal Home Loan Bank of New York and these community banks is a necessary reminder that providing safe, decent and affordable housing is still a priority for many financial institutions.  These 300 units will translate into stronger and healthier communities in Newark and Roselle.”

“Valley National Bank is proud to be part of this project,” remarked Michael Fields, First Vice President and Community Reinvestment Act Officer.  “As a community-oriented Bank, we feel that it is our responsibility to serve the needs of the neighborhoods where we do business.”

“The Bank of Princeton is thrilled to partner with the Federal Home Loan Bank of New York in support of both the Kinship House and Rosetta Common Project in Newark, NJ.  Both of these projects are consistent with The Bank of Princeton’s core strategic focus of supporting and partnering with area communities,” said Edward Dietzler, senior vice president of Corporate Development for The Bank of Princeton.

“RSI Bank is the typical, community bank…not very large, but intently focused on the communities it serves, which is why we are thrilled to partner with Meyers Senior Residence, Inc. and the FHLBNY Affordable Housing Program to make the Jack & Margaret Meyers Senior Residence a reality for our community,” said D. Russell Taylor, President and CEO of RSI Bank.

“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 $1.35 million grant for the Baxter Park South project will help fund the construction of 90 rental apartments for low- and very low-income families in Newark.  Additional financing will be provided by Low Income Housing Tax Credits, the New Jersey Housing and Mortgage Finance Agency, American Recovery and Reinvestment Act Capital funds Rental Housing Factor funds from the City of Newark Housing Authority, and a Section 108 loan from the City of Newark.  Liberty Bell Bank submitted the application for the funding for the project. 

The $825,000 grant for The Plaza at Springfield Village will help fund the construction of 49 new rental units on a vacant lot.  The construction of this high-quality affordable housing for low- and very low-income families and individuals will contribute to the revitalization of a primary commercial corridor in the City of Newark.  Additional financing will be provided by Low Income Housing Tax Credits, a permanent mortgage from the New Jersey Housing Mortgage & Finance Agency, a mortgage from the Special Needs Housing Trust Fund, and a deferred developer fee.  Valley National Bank submitted the application for the funding for the project.

The $510,000 grant for the Rosetta Commons project will help fund the construction of 51 apartments for very low-income families in Newark.  Additional financing will be provided by the New Jersey Housing and Mortgage Finance Agency Special Needs Housing Trust Fund, and Neighborhood Stabilization funds.  The Bank of Princeton submitted the application for the funding for the project.

The $480,000 grant for the Kinship House Project will help fund the construction of two four-story, 12-unit apartment buildings in Newark.  The purpose of the Kinship Housing Program is to provide housing for grandparents who are forced by circumstances to house and care for their grandchildren.   Additional financing will be provided by City of Newark HOME funds, Essex County HOME funds, a U. S. Department of Housing and Urban Development Continuum of Care Plan, and the New Jersey Housing and Finance Agency.  The Bank of Princeton submitted the application for the funding for the project.

The $600,000 grant for the Jack & Margaret Myers Senior Residence will help fund the construction of a 51-unit apartment building which will house very low-income seniors on the site of a former convent in Rahway.  Additional financing will be provided by the U.S. Department of Housing & Urban Development, the Union County Department of Parks and Community Renewal and the New Jersey Department of Community Affairs.  The City of Rahway has granted the project a 40-year tax exemption.  RSI Bank submitted the application for the funding for the project.

The $95,000 grant for the Chestnut Street project will help fund the construction of 16 housing units, created by connecting and renovating two vacant properties in Roselle.  The rehabilitation of this foreclosed property will also revitalize the neighborhood as well as provide affordable housing for families as well as individuals with disabilities.  Additional financing will be provided by Union County Neighborhood Stabilization Program, the New Jersey Department of Community Affairs HOME funds and the sponsor.  The Provident Bank submitted the application for the funding for the project.

The $29,750 grant for the Cristiani Street project will help fund the rehabilitation of a vacant multifamily complex which will provide housing for four very low-income individuals with disabilities and one family.  The project is designed to integrate the disabled residents into a community setting and increase the supply of accessible, affordable housing for people with disabilities.  Additional financing will be provided by the sponsor and  the Union County Economic Development Agency.  The Provident 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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