Affordable Housing Program Awardees

January 26, 2012

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

FHLBNY Awards a $260,000 Affordable Housing Grant in East Patchogue

Habitat for Humanity Suffolk 2011 project will build or rehabilitate 26 homes

East Patchogue, New York – The Federal Home Loan Bank of New York announced today the award of a $260,000 grant to Habitat for Humanity of Suffolk to help finance the Habitat for Humanity Suffolk 2011 project, which will construct 22 single-family homes and rehabilitate four homes for low- and very low-income families. Astoria Federal Savings, a member of the Federal Home Loan Bank of New York, submitted the application for the funding.

"Supporting affordable housing on Long Island is a top priority and I applaud the Federal Home Loan Bank of New York and Astoria Federal Savings for this grant, which will strengthen our community by providing affordable housing for 26 working families in East Patchogue in partnership with Habitat for Humanity,” said Congressman Tim Bishop.

“We are pleased to play a role in this important project which will help change lives and build stronger communities here on Long Island. Over the years, Astoria Federal Savings has helped build or renovate 25 Habitat homes in Suffolk County, and we are proud to support this effort to make affordable housing available,” said Brian Edwards, executive vice president, Retail Banking Group at Astoria Federal Savings.

“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.”

The $260,000 grant will be used to buy-down the mortgages on the 26 newly constructed or rehabilitated homes to ensure affordability for very low-income families. The homes will be built in deteriorating, struggling neighborhoods, and will revitalize these neighborhoods by providing attractive housing and raising the property values of surrounding homes. Habitat homebuyers will purchase the homes at cost, after completing a required down payment of 270 hours of sweat equity on their homes and participating in a family educational program, which will provide information on home maintenance and upkeep, safety issues, and the financial responsibilities of homeownership. The townships of Babylon, Brookhaven, Southampton and Islip have donated the properties to the sponsor. Additional financing will be provided by the sponsor’s fundraising efforts and donations from local businesses.

The grant is 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.

Astoria Federal Savings
Astoria Financial Corporation (NYSE: AF), with assets of $17.0 billion, is the holding company for Astoria Federal Savings and Loan Association. Established in 1888, Astoria Federal, with deposits in New York totaling $11.2 billion, is the largest thrift depository in New York and embraces its philosophy of “Putting people first” by providing the customers and local communities it serves with quality financial products and services through 85 convenient banking office locations and multiple delivery channels, including its enhanced website, Astoria Federal commands the fourth largest deposit market share in the attractive Long Island market, which includes Brooklyn, Queens, Nassau, and Suffolk counties with a population exceeding that of 38 individual states. Astoria Federal originates mortgage loans through its banking and loan production offices in New York, an extensive broker network covering fourteen states, primarily along the East Coast, and the District of Columbia, and through correspondent relationships covering fifteen states and the District of Columbia.

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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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.