Affordable Housing Program Awardees

October 16, 2012

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

FHLBNY Awards $3.3 Million in Affordable Housing Grants in Rochester

Three initiatives will create or preserve nearly 600 units of affordable housing

Rochester, New York – The Federal Home Loan Bank of New York announced today the award of a $2 million grant to Pathstone, Inc. to help finance the Pinnacle Place project, which will rehabilitate 405 apartments which provide housing for very low-income seniors; a $690,000 grant to the Ibero-American Development Corp. to help fund the Abraham Lincoln project, which will renovate and preserve 69 units of affordable senior housing; and a $600,000 grant to the Isla Housing and Development Corp. to help finance the Lake Ravine Apartments project, which will help create 111 units of housing for low- and very low-income families. First Niagara Bank, a member of the Federal Home Loan Bank of New York, submitted the applications for the funding of all three projects.

“First Niagara is proud to support the provision of safe and affordable housing in Rochester,” said Rochester Market Executive Suzanne Nasipak-Chapman. “Housing is an important part of our city’s revitalization projects.”

“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.”

The Pinnacle Place project will rehabilitate 405 apartment units which provide housing for very low-income senior citizens. The complex was built in 1974 under the Mitchell-Lama Program and is in need of substantial rehabilitation. The original bond, rent subsidy and interest reduction payments expire in 2016. The sponsor is acquiring the property, refinancing it and making much needed renovations to preserve it as affordable housing. Funding sources include the New York State Housing Finance Agency, tax exempt bonds, Low Income Housing Tax Credits, and the City of Rochester. The Affordable Housing Program subsidy will be used for to partially finance construction costs to renovate the units.

The Abraham Lincoln project involves the renovation and preservation of 69 affordable housing units for senior citizens. Sixty-eight units are set aside for very low-income households and one unit is set aside for a low-income family. The project will receive Housing Choice Vouchers for 33 units through a Housing Assistance Payment Contract with the Rochester Housing Authority. In addition, Project-Based Vouchers for the remaining 36 units have recently been committed by the Rochester Housing Authority in an effort to help preserve the units as affordable. Residents pay no more than 30% of their income in rent, making all units affordable to very low-income households. The Affordable Housing Program subsidy will be used to partially finance construction costs. Additional funding will be provided by tax exempt bonds, federal tax credit equity, a New York State Housing Finance Agency subsidy loan, a Monroe County HOME loan, the New York State Housing Trust Fund, and deferred developer fees.

The Lake Ravine Apartments project involves the acquisition, rehabilitation and consolidation of two adjacent properties creating 111 housing units for very low- and low-income families. The buildings were HUD-insured, Mark-To-Market (“M2M”) properties and minimal capital improvements were allowed by HUD as part of the M2M transaction. A more substantial rehabilitation is needed in order to preserve the units as affordable housing in the long term. The Affordable Housing Program subsidy will be used to partially finance rehabilitation costs. Additional financing will be provided by First Niagara Bank, the City of Rochester, Low Income Housing Tax Credits, project reserves, and deferred Developer fee.

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.

About First Niagara
First Niagara, through its wholly owned subsidiary, First Niagara Bank, N.A., is a multi-state community-oriented bank with nearly 430 branches, approximately $35 billion in assets, $28 billion in deposits, and approximately 6,000 employees providing financial services to individuals, families and businesses across Upstate New York, Pennsylvania, Connecticut and Massachusetts. For more information, visit

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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