Affordable Housing Program Awardees

January 26, 2011

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

FHLBNY Awards $160,000 in Affordable Housing Grants in Summit and Scotch Plains

Two projects will create or rehabilitate 10 units of housing

Summit, New Jersey – The Federal Home Loan Bank of New York announced today the awards of a $120,000 grant to Morris Habitat for Humanity to help finance the construction of a new condominium which will create six homeownership opportunities in Summit; and a $40,000 grant to the Community Access Institute to help finance the Colonial Drive project, which will rehabilitate a vacant home in Scotch Plains to create four units of housing for very low-income individuals with disabilities.  Home Loan Bank members Lakeland Bank and The Provident Bank submitted the applications for the funding.

“These Affordable Housing Program grants will not only bring homeownership opportunities to Summit, but also improve existing affordable housing options in Scotch Plains,” said Congressman Leonard Lance (NJ-7) “In awarding these grants, the Federal Home Loan Bank of New York, Lakeland Bank and The Provident Bank are helping to strengthen two New Jersey communities.  And as a long-time supporter, I applaud Habitat for Humanity for bringing much-needed affordable housing to Union County."

“We are very pleased to be partnering with the Federal Home Loan Bank of New York and Morris Habitat for Humanity to help create homeownership opportunities in Summit,” said Thomas J. Shara, president and CEO of Lakeland 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 $120,000 grant for Morris Habitat for Humanity project will help fund the construction of a new six-unit condominium which will provide homeownership opportunities to moderate-, low- and very low-income families.  The sponsor will provide mandatory homeownership education, budget and credit counseling, and the homebuyers will also be required to put in at least 300 hours of “sweat equity” in building their homes.  Additional financing will be provided by the City of Summit Affordable Housing Trust Fund, Morris County HOME Funds, the Lena Willis Foundation, Summit Interfaith Community, and in-kind donations of services and materials.  Lakeland Bank submitted the application for the funding for the project.

The $40,000 grant for the Colonial Drive project will help fund the program’s rehabilitation of a vacant house which will provide housing for four very low-income individuals with disabilities.  The project is designed to integrate the 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 a funding application has been submitted to the TD Bank Housing for Everyone competition.  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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