Affordable Housing Program Awardees

January 15, 2014

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

FHLBNY Awards $1.6 Million in Affordable Housing Grants in Newark

Three projects will create 133 units of housing for low- and very low-income households

Newark, New Jersey – The Federal Home Loan Bank of New York announced today the award of a $789,992 grant to Foresight Affordable Housing, Inc. to help finance the Somerset Brownstones project, which will create 60 units of affordable housing for low-income households; a $612,500 grant, also to Foresight Affordable Housing, Inc., to help finance the Spruce Street Senior Residences project, which will redevelop 50 units of affordable housing for low- and very low-income seniors; and a $260,000 grant to the New Community Corporation to help finance the A Better Life project, which will create 23 units of supportive affordable housing for homeless individuals. Federal Home Loan Bank of New York members Liberty Bell Bank and New Community Federal Credit Union submitted the applications for the funding.

“Affordable housing has the power to revitalize neighborhoods and strengthen communities,” said Congressman Donald Payne, Jr. (NJ-10). “Children who grow up in a home do better in school, and individuals who have the security of safe, affordable housing are more likely to succeed. All of this contributes to the overall success of families and our economy. These grants from the Federal Home Loan Bank of New York, Liberty Bell Bank and New Community Federal Credit Union will bring new affordable housing to Newark and also provide supportive homes for those who need it most.”

“These multi-phase initiatives will bring much-needed affordable housing to Newark,” said Liberty Bell Bank Senior Vice-President John Herring. “The AHP grant funding will help provide affordable housing for those who need it most, and strengthen the community, as well. Liberty Bell Bank is proud to serve as a bank sponsor for such worthwhile endeavors.”

“New Community Corporation is grateful to the Federal Home Loan Bank of New York for providing the funding to help make A Better Life a reality,” said Rich Rohrman, CEO of New Community Corporation. “Chronic homelessness among the veteran population is a significant problem and we are pleased that New Community will be able to provide not only housing, but comprehensive healthcare services, including behavioral health,” he added.

“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.”

The Somerset Brownstones project is the first phase of a two-phase redevelopment of the Douglas Harrison Homes in Newark's Central Ward. The land will be conveyed to the ownership entity by a redevelopment agreement to an affiliate of the developer. The project will include four separate three-story brownstone-style buildings, each containing 15 rental units for low-income families. Fifteen of the units will be reserved for homeless special needs households, and all of the units will be occupied by very low- and low-income households. Liberty Bell Bank submitted the application for this funding. Additional financing will be provided by the New Jersey Mortgage and Housing Finance Agency Sandy Special Needs Housing Fund, a Community Development Block Grant and the Neighborhood Stabilization Program.

The Spruce Street Senior Residences project is the second phase of the two-phase redevelopment of the Douglas Harrison Homes. The project will consist of one four-story building with 44 one-bedroom units and six two-bedroom units, all of which will be constructed as fully handicap-adaptable so that seniors can age in place. Twenty units are targeted for low-income households and the remaining thirty units are targeted to very low-income households. Liberty Bell Bank submitted the application for this funding. Additional financing will be provided by the City of Newark HOME Program, the Neighborhood Stabilization Program, the Community Development Block Grant Fund for Restoration of Multifamily Housing and Federal Low Income Housing Tax Credits.

A Better Life is a permanent supportive housing project. The project will house homeless persons with severe mental illness and other debilitating behavioral conditions, with a focus on veterans. The Affordable Housing Program funds will be used to finance very low-income residential units. New Community Federal Credit Union submitted the application for this funding. Other funding sources include the City of Newark HOME Program, U. S. Department of Housing and Urban Development McKinney Funding for the Homeless, New Jersey Housing and Mortgage Finance Agency tax exempt revenue bonds, the Special Needs Housing Trust Fund 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.

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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