Affordable Housing Program Awardees

January 26, 2012

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

FHLBNY Awards $3.3 Million in Affordable Housing Grants in Syracuse and Kirkville

Three projects will renovate and preserve 340 affordable homes

Syracuse, New York – The Federal Home Loan Bank of New York announced today the awards of a $788,625 grant to the Pompeii Housing Development Fund to help finance the Pompeii North Apartments project, which will rehabilitate a 50-unit facility in Syracuse for very low-income seniors and individuals with disabilities; a $370,544 grant to the Syracuse Housing Authority to help finance the substantial renovations of The Leonard, which provides 48 apartments for very low-income families; and a $2,178,000 grant to Snow Belt Housing to help finance the New York Rural Preservation project, which will preserve 242 units of existing affordable housing for seniors in Kirkville and other sites across Albany, Clinton, Onondaga, Oswego, Saratoga and Washington counties. Home Loan Bank members M&T Bank and First Niagara Bank submitted the applications for the funding.

“Preserving New York’s affordable housing stock is extremely important in today’s economy,” said Congresswoman Ann Marie Buerkle (NY-25). “These grants awarded today by the Home Loan Bank, M&T and First Niagara will help to ensure these units remain affordable, and that seniors and families in Syracuse, Kirkville and across the region are able to stay in their homes.”

“Good senior housing is an important community issue in Syracuse, and this Federal Home Loan Bank grant will help renovate a 50-unit senior housing project in Pompeii. Because M&T Bank has a long history as a community bank in Syracuse, we’ve always focused on using a variety of funding sources to help finance projects important to this community,” said M&T Bank Regional President Allen Naples.

“The FHLNY grant applications submitted by First Niagara for both projects will provide over $2.5 million in funding for 290 units of affordable housing for very low-income seniors and very low-income families in Central and Eastern New York,” said David Kavney, market executive for Central NY for First Niagara Bank. “We congratulate both the Syracuse Housing Authority and the Snow Belt Housing Company on their successful applications and we look forward to working with them on the completion of their projects.”

“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 $788,625 grant for the Pompeii North Apartments Renovation project will help fund the rehabilitation of a 50-unit facility for very low-income senior citizens and individuals with disabilities. The building was designed to promote an aging in place environment and provides much needed affordable housing to elderly residents, the majority of whom have incomes less than 30 percent of the area median income. The building is twenty-three years old and needs improvements that will extend its useful life. Additional financing will be provided from the buildings reserve funds. M&T Bank submitted the application for the AHP funding for this project.

The $370,544 grant for The Leonard project will help fund the substantial renovations of three rental apartment buildings which contain 48 apartment units. The property had been foreclosed upon by the U.S. Department of Housing and Urban Development and was transferred to sponsor. This project will preserve affordable housing for very low-income families, and will increase the number of family-size units in the buildings to serve the larger families of the community. Additional financing will be provided by Neighborhood Stabilization Program funds, the Onondaga County Green Improvement Fund, and the Syracuse Neighborhood and Business Development Project Assistance Program. First Niagara Bank submitted the application for the AHP funding for this project.

The $2,178,000 grant for the New York Rural Preservation project will help fund construction associated with the scattered-site project that will preserve 242 units of existing affordable housing for senior citizens. The units are located in Albany, Clinton, Onondaga, Oswego, Saratoga and Washington counties, and are occupied by moderate-, low- and very low-income households. Of the 242 units, 233 units have rental subsidies from either the U.S. Department of Agriculture Rural Development, the New York Homes and Community Renewal Rural Rental Assistance Program or U. S. Housing and Urban Development Section 8 Vouchers. Additional financing will be provided by the sale of Low Income Housing Credits, the New York Housing Finance Agency, tax exempt bonds, restructuring and subordination of the existing USDA Rural Development Mortgages, deferred developer fees and existing project reserves. First Niagara 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.

About First Niagara
First Niagara, through its wholly owned subsidiary, First Niagara Bank, N.A., is a multi-state community-oriented bank that currently has approximately $31 billion in assets, $19 billion in deposits, more than 330 branches and 5,000 employees providing financial services to individuals, families and businesses across upstate New York, Pennsylvania, Connecticut and Massachusetts. For more information, visit www.firstniagara.com.

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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