CIP Success Stories
The Provident Bank Helps Construct Senior Housing Complex in Dover, New Jersey
The Provident Bank used a $900,000 Community Investment Program (CIP) Advance provided by the FHLBNY to help construct Spruce Senior Housing, a three-story building with 90 units for very low-income senior citizens. The complex was created to promote a senior community environment and increase the supply of affordable housing in this area, as well as revitalize the neighborhood.
All of the rental units at Spruce Senior Housing are handicapped adaptable. The facility provides on-site parking, laundry facilities, a community room, landscaped recreation areas, and a community garden. Health screening and meal programs provided by social services are also available on-site. In addition, there is a senior citizen bus that stops at the site to bring the tenants into town so they have access to local retail and commercial districts.
During its construction, the complex was awarded two Affordable Housing Program (AHP) grants from the FHLBNY to partially finance the construction costs: $910,000 in the first AHP offering of 2000 and $300,000 in the first AHP offering of 2001. The Morris County HOME Program, the New Jersey Department of Community Affairs Balanced Housing Program, and Low Income Housing Tax Credits rounded out the funding. The property was purchased by PENWAL Affordable Housing Corporation, a certified non-profit corporation, for the purpose of developing affordable housing.
CIP funds support homeownership and rental housing development projects that benefit individuals/families with incomes at or below 115% of the area median income. Long-term funding is available with any CLP advance, allowing you to match-fund the terms and structure of your end loan, locking in a known spread for the life of the loan to mitigate interest rate risk. CIP Advances may be used to finance the purchase, construction, rehabilitation, refinancing, and/or pre-development of single-family, special-needs, and multi-family housing. For more information about the CIP Advance or to see if the project you have in mind qualifies, contact us at (212) 441-6850.