Affordable Housing Program Awardees

January 15, 2014

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

FHLBNY Awards $2.2 Million in Affordable Housing Grants in Atlantic City, Egg Harbor Township and Sewell

Three projects will create more than 220 units of affordable housing

Atlantic City, New Jersey – The Federal Home Loan Bank of New York announced today the award of a $1.3 million grant to Life Management, Inc. to help finance the Tennessee Green Urban Renewal project, which will create 65 units of housing for low- and very low-income families in Atlantic City; a $782,574 grant to United Cerebral Palsy to help finance the Egg Harbor Hotel Conversion project, which will convert a six-story hotel into 84 units of affordable housing in Egg Harbor Township; and a $150,000 grant to People for People to help finance the White Oak at Mantua project, which will redevelop 72 units of affordable family housing in Sewell. Federal Home Loan Bank of New York members Valley National Bank, Harvest Community Bank and M&T Bank submitted the applications for the funding.

“This year marks the 25th anniversary of the creation of the Affordable Housing Program,” said Alfred A. DelliBovi, president and CEO of the Federal Home Loan Bank of New York. “In that time, the Home Loan Bank has been honored to partner with both our members and scores of terrific non-profit housing organizations across the region to help build affordable homes. Thanks to the hard work of these community institutions, as well as the support the Program continues to receive from Congress, the AHP has become one of the most successful housing programs in the nation.”

“Valley National Bank’s partnership with the Federal Home Loan Bank continues our commitment to giving back to New Jersey. The grants that the Federal Home Loan Bank is able to issue will result in the creation of 221 affordable housing units which will be available to those who are in need. We are proud to be a small part in what ultimately is a greater good,” said Nick Anthony, Senior Vice President, Team Leader, Valley National Bank.

According to Harvest Community Bank President and CEO Dennis Engle, “Throughout the communities we serve, there is a need for more affordable housing. We are pleased to be a partner in the Egg Harbor Hotel Conversion Project. Not only is this type of endeavor an integral part of our mission, but it also is an excellent way to adapt and reuse existing structures to benefit the community.”

“Affordable housing is a basic need for any community to be successful. We have a long history at M&T Bank of working with the Federal Home Loan Bank of New York, and other partners, to finance projects like White Oak in Mantua Township. Because the success of our bank is closely tied to the success of communities we serve,” said Paula Mandell, Regional President for M&T Bank in New Jersey.

The Tennessee Green Apartments project involves the construction of a four-story building which will consist of 66 residential units, one of which will be reserve for a live-in superintendent. The remaining 65 units will be made available to low- and very low-income. Valley National Bank submitted the application for this funding. Other funding sources include the Atlantic County Improvement Authority, a Community Development Block Grant, the New Jersey Housing and Mortgage Finance Agency, and Federal Low Income Housing Tax Credits.

The Egg Harbor Hotel Conversion project involves the adaptive reuse and conversion of the six-story Clarion Hotel into 84 units of affordable housing. The units will be made available to low- and very low-income families. A second phase of the project will convert the Convention Center and the land adjacent to it into additional units of affordable housing. Harvest Community Bank submitted the application for this funding. Additional financing will be provided by Egg Harbor Township, Harvest Community Bank, charitable grants, Federal Low Income Housing Tax Credits, New Jersey Mortgage and Housing Finance Agency Taxable Bonds, the Fund for Restoration of Multifamily Housing, and the Community Development Block Grant Disaster Recovery Program.

The White Oak Lane at Mantua project consists of the redevelopment of 72 units of affordable housing for families. The developer will also set aside five units for people at risk of being homeless and/or youth aging out of foster care. The development also features a community building which will house a management office, laundry facilities, an exercise room, a computer room and a community room with a kitchen. M&T Bank submitted the application for this funding. Additional financing will be provided by the Gloucester County HOME Program, Mantua Township Housing Trust Funds, the New Jersey Mortgage and Housing Finance Agency, and Federal Low Income Housing Tax Credits.

The grants are part of $35.5 million in Affordable Housing Program (“AHP”) subsidies that the Federal Home Loan Bank of New York will award as its 2013 AHP grant round. In total, these grants will help finance 48 affordable housing initiatives which will create or preserve 3,072 units of affordable housing, including more than 2,200 units of very low-income housing, in New Jersey, New York, Puerto Rico, the U.S. Virgin Islands, Florida, Maryland and Pennsylvania. The 12 Federal Home Loan Banks have distributed more than $4.8 billion in AHP funds since 1990. At the Federal Home Loan Bank of New York, the AHP has supported 1,386 projects with nearly $475 million in grants, helping to create or preserve 60,250 units of affordable housing and generating an estimated $8.5 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 Valley National Bank
Valley National Bancorp is a regional bank holding company headquartered in Wayne, New Jersey with $16 billion in assets. Its principal subsidiary, Valley National Bank, currently operates 204 branches in 144 communities serving 16 counties throughout northern and central New Jersey, Manhattan, Brooklyn, Queens and Long Island. Valley National Bank is one of the largest commercial banks headquartered in New Jersey and is committed to providing the most convenient service, the latest in product innovations and an experienced and knowledgeable staff with a high priority on friendly customer service 24 hours a day, 7 days a week. For more information about Valley National Bank and its products and services, please visit www.valleynationalbank.com or call Customer Service, 24/7 at 800-522-4100.

About M&T Bank 
M&T Bank, founded in Buffalo, New York in 1856, serves customers at more than 725 branch offices in New York, Pennsylvania, Maryland, Delaware, Virginia, West Virginia and the District of Columbia. For more information, visit www.mtb.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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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.