RDA Success Stories
Sun National Bank Finances the Reopening of Congress Hall Hotel
The FHLBNY Rural Development Advance (RDA) provides funding for economic and community development projects located in areas with a population of less than 25,000. Restorative efforts funded through RDA programs can often create new jobs, adding economic vibrancy to a community. One of our member lenders, Sun National Bank, did just that. Using an $8 million RDA provided by the FHLBNY, along with additional financing from the New Jersey Economic Development Authority, the US Department of Housing and Urban Development, and the Historic Tax Credit Program, they financed the renovation of Congress Hall, a hotel and conference facility in Cape May, New Jersey.
Congress Hall is a registered National Historic Landmark building, Cape May’s largest existing historic hotel since 1816. It was in substandard condition, needing complete rehabilitation and structural stabilization in order to operate again. The newly restored hotel building created several jobs, many of which employ low-income community members; these jobs considerably impact the local economy, in that Cape May has had the highest average unemployment rate in the State of New Jersey. In addition, now that Congress Hall is open all year round, it will help attract mid-week conference meetings to the town.
RDA funds support economic and community development projects located in local government entities with a population of less than 25,000 that benefit households with incomes at 115% or less 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. RDA funds may be used for the financing of commercial, small business, manufacturing, social service, and public facility projects and activities, as well as the construction and rehabilitation of public or private infrastructure, including roads, utilities, and sewers. For more information about the RDA program or to see if the project you have in mind qualifies, contact us at (212) 441-6850.