March 6, 2020
Brian Finnegan – (212) 441-6877
Federal Home Loan Bank of New York
Announces Support for Puerto Rico Earthquake Relief Efforts
–FHLBNY to donate $500,000 to aid organizations; offers $1 billion in Disaster Relief Funding –
New York, NY – In response to the severe and extensive damage caused by a series of earthquakes that continue to impact Puerto Rico, the Federal Home Loan Bank of New York (“FHLBNY”) has announced $500,000 in donations to organizations leading relief efforts in the Commonwealth. In addition to the charitable contributions, the FHLBNY has $1 billion in disaster relief funding available to its members to help rebuild communities in FEMA-designated disaster areas in Puerto Rico.
“In the wake of a natural disaster, relief and recovery efforts must focus on both immediate and long-term needs,” said José R. González, president and CEO of the FHLBNY. “As we have seen in past natural disasters, the local lender and committed aid organizations are key to these efforts. We have tremendous faith in the organizations that will receive these donations, and appreciate the good work they have done and continue to do to help Puerto Rico recover. Additionally, the $1 billion in disaster relief funding will help our members – the local lenders serving the affected communities – make a long-term, positive impact on relief and rebuilding efforts.”
The FHLBNY will provide contributions of $50,000 each to the American Red Cross, Americares, Hispanic Federation and the World Central Kitchen to support ongoing aid efforts. An additional $300,000 will be provided to PathStone Corporation in support of its Adopt-a-Family Program, which is expected to launch on April 1, 2020, and will support housing preservation and reconstruction efforts for families impacted by the earthquakes. The FHLBNY has worked closely with PathStone on relief efforts in Puerto Rico since the 2017 hurricane season.
In addition to these charitable contributions, $1 billion in disaster relief funding remains available to FHLBNY members through its Community Lending Programs (“CLP”) to be used as both immediate gap financing and longer-term funding to restore homes and businesses. The $1 billion CLP commitment can be used for any residential lending activity for households whose incomes are at or below 115 percent of the area median income, as well as all small business and economic development lending in FEMA-designated disaster areas, and bridge financing. These low-cost loans can be used by the FHLBNY’s member-lenders to support critical disaster relief financial activities, and meet the short-, medium-, and long-term funding needs of affected communities. The FHLBNY previously made this disaster relief funding available following the 2017 hurricanes that devastated Puerto Rico and the U.S. Virgin Islands, and has offered disaster relief funding following natural disasters across its District, most notably following Hurricane Sandy in 2012, when members accessed $850 million in disaster relief funding to assist relief efforts in New Jersey and New York.
About the 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 11 regional, stockholder-owned banks. As of June 30, 2019, the FHLBNY serves 324 financial institutions in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands. The Federal Home Loan Banks support the efforts of local members to help provide financing for America’s homebuyers.
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Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This report may contain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “projected,” “expects,” “may,” or their negatives or other variations on these terms. The Bank cautions that, by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, regulatory and accounting rule adjustments or requirements, changes in interest rates, changes in projected business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our membership profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products, and general economic conditions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
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