Affordable Housing Program Awardees

October 16, 2012

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

FHLBNY Awards $897,250 in Affordable Housing Grants in Newark and Elizabeth

Two initiatives will create more than 120 units of housing

Newark, New Jersey – The Federal Home Loan Bank of New York announced today the award of a $320,000 grant to Life Management, Inc. to help finance the Rose Lofts project, which will build 16 units of affordable housing for individuals with very low-incomes in Newark; and a $577,250 grant to Emmanuel CDC to help finance the Westminster Heights project, which will create 83 units of affordable housing for low- and very low-income families in Elizabeth. Home Loan Bank members Valley National Bank and RSI Bank submitted the applications for the funding.

“Housing is a cornerstone of our economy, a key driver of economic development and job growth, and the foundation of strong families and vibrant communities,” 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 support affordable housing initiatives across our region and beyond. 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. When we strive to ensure that all have access to affordable housing, we strengthen the fabric of our society.”

“RSI Bank is the typical, community bank: not very large, but intently focused on the communities it serves, which is why we are thrilled to partner with Emmanuel CDC, and the FHLBNY AHP Program to make the Westminster Heights project a reality for the community,” said Donald Godfrey, senior vice president of Lending for RSI Bank.

The $320,000 grant for the Rose Lofts project will help fund the reconstruction of 16 loft-style apartments serving low- and very low-income households in Newark. The rehabilitation includes installing high-efficiency lighting fixtures, Energy Star-rated appliances, and individual, high-efficiency heating and cooling systems which will allow residents to take advantage of cost savings in heating, cooling and electricity. All residents will have access to a variety of social services that will consist of employment assistance, computer workshops, family planning, and referrals to community support groups. Additional financing for the project will be provided by Low-Income Housing Tax Credits, a permanent mortgage from the New Jersey Housing Mortgage and Finance Agency of New Jersey, the Department of Community Affairs and deferred developer fees. Valley National Bank submitted the application for this project.

The $577,250 grant for the Westminster Heights project will help fund the construction of 15 one-bedroom units, 53 two-bedroom units and 15 three-bedroom units which will be reserved for low- and very low-income families. In addition, 23 units will be aside as public housing units and will receive an operating subsidy from the Housing Authority of the City of Elizabeth. Additional financing will be provided by Low Income Housing Tax Credits, Replacement Housing Factor funds from the Housing Authority of the City of Elizabeth, and deferred developer fees. RSI Bank submitted the application for this project.

The grants are part of $26.4 million in Affordable Housing Program subsidies that the Federal Home Loan Bank of New York will award as its 2012 AHP grant round. In total, these grants will help to finance 37 affordable housing initiatives which will create or preserve 2,679 units of affordable housing, including more than 2,000 units of very low-income housing, in New Jersey, New York and Pennsylvania. The Federal Home Loan Banks have distributed more than $4.6 billion in AHP funds since 1990. At the Federal Home Loan Bank of New York, the AHP has supported 1,355 projects with nearly $450 million in grants, helping to create or preserve nearly 58,000 units of affordable housing and generating an estimated $8.1 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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