Federal Home Loan Bank of New York, November 19, 2018 , November 29, 2018 | Category: Press
Federal Home Loan Bank of New York Awards $44.3 Million for 49 Affordable Housing Initiatives
Projects will create, rehabilitate or preserve more than 3,000 affordable housing units
New York, New York — José R. González, president and CEO of the Federal Home Loan Bank of New York, announced that the Bank has awarded $44.3 million in subsidies to fund 49 affordable housing initiatives throughout New Jersey, New York, Puerto Rico, North Carolina, Ohio and Pennsylvania. These awards are funded through the Bank’s Affordable Housing Program (AHP), and will result in the creation or rehabilitation of 3,012 affordable housing units, including 2,012 units dedicated to very low-income housing. The awards will not only help provide housing, but also drive community development: it is anticipated that more than $730 million will be leveraged in housing investment from the development of these initiatives.
"At the Federal Home Loan Bank of New York, our housing mission is central to both our business and our culture," said Mr. González. "For nearly 30 years, our Affordable Housing Program has provided our cooperative with a consistent and reliable way to support the many incredible projects and initiatives that will and continue to benefit communities across our region. The grants we announce today – the highest single round award amounts since we began making AHP grants – will allow us to join with our members to support the communities we all serve. I am especially pleased that nearly half of the applicants that resubmitted their applications from prior years were successful this year, reflecting both our team’s ability to work with organizations to strengthen their applications, and the ongoing commitment of these organizations to providing affordable homes for those who need them most."
The $44.3 million in grants represent a portion of the AHP funds that are drawn from the Bank’s earnings. As mandated by Congress, the Bank forgoes 10 percent of its earnings each year to support these neighborhood housing and economic development initiatives.
The Federal Home Loan Bank of New York’s AHP provides members with direct subsidies which are passed on to income-qualified households through sponsoring local community-based organizations. AHP financing is combined with other funding sources to create housing for moderate-, low- and very low-income households. Program awardees receive this funding through a competitive application process. Each competing project must be sponsored by a financial organization that is a member of the Bank in partnership with a community-based sponsoring organization.
The AHP was created by Congress in 1989, and the 11 Federal Home Loan Banks have awarded more than $5.8 billion in AHP funds since the first awards were granted in 1990. At the Federal Home Loan Bank of New York, the AHP has supported 1,833 projects with more than $740 million in grants, helping to create or preserve more than 85,000 units of affordable housing and generating an estimated $12 billion in total development costs.
The following New Jersey communities will benefit from the announced funds: Camden, Cherry Hill, Edison, Elizabeth, Fair Lawn, Hampton, Jersey City, Paterson, Robbinsville and Woodbridge.
The following New York communities will benefit from the announced funds: Albany, Brewerton, The Bronx, Brooklyn, Buffalo, Central Islip, Cohoes, Corning, East Syracuse, Fulton, Gouverneur, Ilion, Manhattan, Middletown, Nyack, Rochester, Schenectady, Staten Island, Syracuse and Utica, as well as scattered sites.
The community of San Juan, Puerto Rico will also benefit from the announced funds.
Grants were also awarded for Raleigh, North Carolina; Cleveland, Ohio; and the Pennsylvania communities of Mount Joy and Philadelphia.
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 September 30, 2018, the FHLBNY serves 326 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.