Affordable Housing Program Awardees

January 26, 2012

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

FHLBNY Awards $880,000 in Affordable Housing Grants in Atlantic City and Vineland

Two projects will create nearly 60 homes for low- and very low-income households

Atlantic City, New Jersey – The Federal Home Loan Bank of New York announced today the awards of an $870,000 grant to Homes Now, Inc. to help finance the Beachview Residence Apartments, which will renovate a vacant property to create housing for 58 low- and very low-income households in Atlantic City; and a $10,000 grant to Habitat for Humanity of Cumberland County to help finance a homeownership project that will construct a home for a very low-income family in Vineland. Home Loan Bank members Cape Bank and Century Savings Bank submitted the applications for the funding.

“Safe, decent and affordable housing is vital not only to the stability of our economy, but our communities and families, as well,” said Alfred DelliBovi, president and CEO of the Federal Home Loan Bank of New York. “The Federal Home Loan Bank of New York is proud to offer this funding to continue to support those who strengthen the foundation of this cornerstone of the American Dream. We thank all of our partners – the local lenders, the housing groups and our elected officials – for their continued support of the Affordable Housing Program, and their work towards revitalizing our country’s housing sector.”

When hearing of the announcement, Cape Bank President and CEO Michael D. Devlin said, “The vitality of the Atlantic City community continues to be key to the long term success of our region. When coupled with the benefits that will be derived for the constituents of this renovated property, the project becomes a ‘win-win’ for everyone. We are pleased to be taking such an active role.”

“Century Savings Bank has a long history of supporting the communities where we do business,” said David J. Hemple, president and CEO of Century Savings Bank. “Our relationship with both the Federal Home Loan Bank of New York and our local Habitat for Humanity creates a strong partnership that literally enables a lifetime opportunity for a local family.”

The $870,000 grant for the Beachview Residence Apartments project will help fund the renovation of an existing property which was previously operated as a convalescent/nursing home and residential care facility. The property is presently vacant and, after renovations, will provide housing for 58 low- and very low-income households. Residents will include senior citizens and adults with special needs. Additional financing will be provided by the New Jersey Housing and Mortgage Finance Agency Special Needs Trust Fund, Low Income Housing Tax Credits, Casino Redevelopment Authority funds, and the Federal Home Loan Bank of Pittsburgh. Cape Bank submitted the application for the AHP funding for this project.

The $10,000 grant for the Habitat for Humanity of Cumberland County homeownership project will help fund the construction of a home for a very low-income family. The project will provide a homeownership opportunity to a family that would typically be unable to secure a traditional mortgage and whose current living conditions are unsafe, unaffordable, or do not meet the family's needs. Additional financing will be provided by the City of Vineland HOME funds, a Cumberland County United Way grant, and the sponsor’s revolving fund. Century Savings Bank submitted the application for the AHP funding for this project.

The grants are part of $33.6 million in Affordable Housing Program subsidies that the Federal Home Loan Bank of New York will award as its 2011 AHP grant round. In total, these grants will help to finance 57 housing projects which will create or preserve 2,837 units of affordable housing, including more than 2,200 units of very low-income housing, in New Jersey, New York, Maryland and Pennsylvania. The Federal Home Loan Banks have distributed $4.3 billion in AHP funds since 1990. At the Federal Home Loan Bank of New York, the AHP has supported more than 1,300 projects with grants of more than $425 million, creating nearly 59,000 units of affordable housing and generating an estimated $8.2 billion in total development costs. 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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