Affordable Housing Program Awardees

January 15, 2014

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

FHLBNY Awards a $3.19 Million Affordable Housing Grant in Pennsauken

Sycamore Ridge Preservation project will preserve 304 units of affordable housing

Pennsauken, New Jersey – The Federal Home Loan Bank of New York announced today the award of a $3,195,000 grant to Homes Now, Inc. to help finance the Sycamore Ridge Preservation project, which will rehabilitate a 304-unit affordable housing community. Citibank, N.A., a member of the Federal Home Loan Bank of New York, submitted the application for the funding.

“The Federal Home Loan Bank of New York has long been a supporter of affordable housing in New Jersey, and the grant it awards today with Citi will help avoid the loss of this important affordable housing resource for Pennsauken,” said Congressman Robert Andrews (NJ-1).

“Citi is proud to have sponsored the Affordable Housing Program application for Sycamore Homes. This award is a key source of financing for critically needed affordable housing in Pennsauken, New Jersey and will help meet important housing needs in the community,” said Richard Gerwitz, Co-Head of Citi Community Capital.

“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.”

Sycamore Ridge is an existing 304-unit affordable housing community. The property is a garden-style apartment complex containing 18 buildings with 152 one-bedroom apartments, 142 two-bedroom apartments and 10 three-bedroom apartments. The property also includes an on-site management office, community room, central laundry facilities and outdoor playgrounds. To generate the funding required to rehabilitate the units to a standard beyond the minimum housing quality standards in order to ensure the property’s useful life for a 30-year regulatory period, the current owner proposes to transfer title to a new ownership entity to syndicate, refinance and rehabilitate the property. Additional financing will be provided by Federal Low Income Housing Tax Credits, developer equity and Citi.

The grant is 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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