Affordable Housing Program Awardees

January 26, 2011

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

FHLBNY Awards $1.14 Million in Affordable Housing Grants in Newark and Jersey City

Two projects will create 90 units of affordable housing

Newark, New Jersey — The Federal Home Loan Bank of New York announced today the awards of a $600,000 grant to Life Management, Inc. to help finance the La Plaza project, which will create 30 units of affordable housing in Newark; and a $540,000 grant to the Jersey City Housing Authority to help finance the A. Harry Moore Apartments project, which will create 60 new units of affordable housing in Jersey City. Home Loan Bank members Valley National Bank and Columbia Bank submitted the applications for the funding.

“These grants from the Federal Home Loan Bank of New York, Valley National Bank and Columbia Bank will help to not only provide affordable homes but also revitalize neighborhoods, strengthening both the Newark and Jersey City communities,” said Congressman Albio Sires (NJ-13).”

“Valley National Bank is proud to be part of the revitalization efforts in Newark,” remarked Michael Fields, First Vice President and Community Reinvestment Act Officer. “As a corporate neighbor with long-standing ties to the communities we serve, we feel that we have an obligation to help these neighborhoods grow and prosper.”

“Columbia Bank’s community involvement as well as support from the Federal Home Loan Bank of New York provides us the means to create new affordable housing opportunities for those in need,” said Raymond G. Hallock, President and Chief Executive Officer of Columbia 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 $600,000 grant for the La Plaza project will help fund the construction of 30 new rental units in five existing brownstones that are in various stages of deterioration. The brownstones will be restored to their original character and be made available to moderate-, low- and very low-income households. Additional financing will be provided by Low-Income Housing Tax Credits, a permanent mortgage from the New Jersey Housing Mortgage & Finance Agency, the New Jersey Department of Community Affairs, the City of Newark, the Neighborhood Stabilization Program and Balanced Housing funds. Valley National Bank submitted the application for the funding for the project.

The $540,000 grant for the A. Harry Moore Apartments project will help fund the demolition and replacement of 60 deteriorating and sub-standard public housing units, creating a new mixed-income development. Additional financing will be provided through funding from the Jersey City Housing Authority, Low Income Housing Tax Credits, the New Jersey Housing and Mortgage Finance Agency (NJHMFA) Tax Credit Assistance Program, and a NJHMFA first mortgage. Columbia 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.

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.