Connecticut Affordable Housing Gets Financial Boost

Each year, the Bank commits 10 percent of its net profits to provide grants and subsidized, below market-rate loans through the AHP. "The credit crisis has made the need for affordable housing even greater," said Michael A. Jessee, the Bank's president and chief executive officer. "Now more than ever, working families, seniors, and special needs populations need decent housing, and I'm proud that our contribution will help make that a reality for more than 400 individuals and families."

Congresswoman Rosa L. DeLauro (CT-3) added, "Working families in Connecticut are struggling with the housing crisis and a contracting credit market. This funding will help ensure families have a roof over their head - whether it is to increase access to homeownership inMiddlefield or to renovate existing buildings to expand affordable housing inNew Haven."

AHP funds are used to create or preserve affordable housing and help pay construction, acquisition, or rehabilitation costs. Member financial institutions work with local developers to apply for AHP funding, awarded twice a year through a competitive scoring process. The application deadline for the second round of this year's AHP awards is September 12, 2008.

The mission of the Federal Home Loan Bank ofBoston is to support the residential-mortgage and community-development lending activities of its members, which include over 450 financial institutions across New England. To accomplish its mission, the Bank utilizes private-sector capital to provide members and other qualified customers with reliable access to low-cost wholesale funds, liquidity, a competitive outlet for the sale of loans, special lending programs, technical assistance, and other products and services.

Information on the awards follows, and is also available at www.fhlbboston.com/ahp.

    Location: Middlefield
    Member: Liberty Bank
    Sponsor: Middlesex Habitat for Humanity of Connecticut, Inc.
    Number and Type of Units: 1 ownership
    Amount and Type of Subsidy: $24,500 grant

Ballfall Road Project. Rehabilitation of an existing home for a very low-income, first-time home buyer. The home is part of the state's surplus property and will be donated, and the sponsor has placed a deed restriction on the property to maintain long-term affordability. The rehabilitation will make the property more energy-efficient, and the home buyer will be required to invest 200 hours of sweat equity. The family will receive homeownership counseling and the sponsor will offer daycare services and after-school programs. In addition to the AHP grant, Liberty Bank will provide a grant and line of credit.

    Location: New Haven
    Member: NewAlliance Bank
    Sponsor: Mutual Housing Association of South Central Connecticut, Inc.
    Number and Type of Units: 6 rental
    Amount and Type of Subsidy: $290,240 grant and subsidy, $350,000 advance

Richard Street Phase II. Acquisition and rehabilitation of two blighted buildings to create six units of rental housing. The properties are located adjacent to a development previously funded by the AHP. Four units will be for families with incomes at or below 50 percent of area median income and two will be for families with incomes at or below 80 percent of area median income. All units will be three-bedroom and energy-efficient. Residents will participate in a residents' council and the sponsor will provide after-school, weekend, and summer youth programs. In addition to the AHP grant, NewAlliance Bank will provide the permanent debt through the AHP-subsidized advance. Additional funding will be provided through state-funded grants.

CONTACT: Mark S. Zelermyer

617-292-9750

mark.zelermyer@fhlbboston.com

SOURCE The Federal Home Loan Bank ofBoston

Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze, Daily News

Tags: Banking and Finance, Real Estate, National, connecticut

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