$250 Million for Disaster Relief Committed by the FHLBNY
Contact: Eric Amig - 212 441-6807 |
May 1 , 2007 |
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New York, New York – The Federal Home Loan Bank of New York today announced a renewal of its previous commitment to provide immediate gap financing to begin the process of rebuilding while insurance settlements are being worked out. Up to $250 million in disaster relief funds is being made available through its Community Lending Programs (CLP). Community member lenders can tap these low cost loans to meet the short, medium, and long term funding needs of communities designated as FEMA disaster areas. Several designated communities in New York and New Jersey have been hard hit by recent severe flooding. The renewed $250 million CLP commitment can specifically be used for housing, small business and economic development lending.
"Flexibility and speed are critical in the initial stages of recovery from disaster," said Alfred A. DelliBovi, President of the FHLBNY. "Therefore we are pleased to immediately renew our previous commitment of $250 million in Community Lending Program funds and we are set to provide expedited processing for these funds."
The CLP advances (wholesale loans) are the lowest priced advances offered by the FHLBNY. These funds are targeted toward lending activity that support affordable home financing activity and economic development lending activity for low-and moderate-income communities. In addition these funds can be used to support disaster relief financing activities, regardless of income status, for affected communities.
Usually, CLP advances are limited to terms of one year or greater. However, the FHLBNY has reduced the minimum term requirement to 30 days in anticipation of the need for shorter-term financing during the initial stages of disaster recovery, prior to the payout of insurance settlements.
"We have many members who serve the New York Counties of Orange, Rockland and Westchester and the New Jersey Counties of Bergen, Burlington, Camden, Essex, Gloucester, Hudson, Mercer, Middlesex, Morris, Passaic, Somerset, Sussex and Union that were severely affected by the recent flooding," added Mr. DelliBovi. "These members are part of the community and remain fully committed to serve their neighbors during these difficult times."
The FHLBNY 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 FHLBNY currently serves over 300 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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