Three projects will create or rehabilitate nearly 120 affordable homes
New York, NY – January 16, 2014 – (RealEstateRama) — The Federal Home Loan Bank of New York announced today the award of an $857,500 grant to the St. John Fruit Belt Development Corporation to help finance the St. John Townhomes II project, which will build 49 units of affordable housing in the Fruit Belt neighborhood of Buffalo; a $400,000 grant to the Lackawanna Housing Development Corporation to help finance the Lackawanna Homes project, which will build 48 single-family homes and a community building in a targeted revitalization neighborhood in Lackawanna; and a $163,800 grant to Niagara Community Action Program, Inc. to help finance the rehabilitation of 20 units of owner-occupied housing across Niagara County. Federal Home Loan Bank of New York members M&T Bank and First Niagara Bank submitted the applications for the funding.
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“These investments in Buffalo, Lackawanna and Niagara Falls not only provide new affordable housing opportunities for residents and construction jobs but they serve as critical federal investments in areas that need it most,” said Congressman Brian Higgins (NY-26). “I commend the Federal Home Loan Bank, M&T Bank and First Niagara for their partnership in this effort and am proud to support these projects which will help promote substantial economic revitalizations in critical neighborhoods.”
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“Financing affordable housing in Western New York has been a focus of M&T Bank for decades and these projects effectively leverage other public and private funding to maximize the impact of local neighborhood revitalization,” said Brad Dossinger, Regional Community Reinvestment Manager for M&T Bank. “This FHLB grant to St. John Fruit Belt Development Corporation will allow them to continue their efforts to reinvest in Buffalo’s Fruit Belt Neighborhood. In Niagara County, the Niagara Community Action Program is an important partner for us and this grant will help fund the rehabilitation of 20 single-family homes targeted to veterans, seniors or single-parent households.”
“First Niagara is committed to revitalizing Western New York’s neighborhoods and empowering our community to thrive,” said Buford Sears, First Niagara Western New York Market Executive. “We are proud to work with the Federal Home Loan Bank of New York to help families realize their dream of home ownership and provide safe, affordable housing opportunities for all citizens. Together, we are building toward future for our region.”
“First Niagara believes in making Western New York a better place. This partnership is an opportunity to make a real difference for the people served by the housing organizations working to rebuild our community,” added Karla Gadley, Vice President of Community Reinvestment at First Niagara.
“This year marks the 25th anniversary of the creation of the Affordable Housing Program,” said Alfred A. DelliBovi, president and CEO of the Federal Home Loan Bank of New York. “In that time, the Home Loan Bank has been honored to partner with both our members and scores of terrific non-profit housing organizations across the region to help build affordable homes. Thanks to the hard work of these community institutions, as well as the support the Program continues to receive from Congress, the AHP has become one of the most successful housing programs in the nation.”
The St. John Townhomes II project involves the new construction of 49 townhouse units in 22 buildings located on 17 sites in the Fruit Belt neighborhood of Buffalo. The 28-unit first phase of this project, which also received Affordable Housing Program funding, was completed in 2007. M&T Bank submitted the application for the current funding. Additional Financing will be provided by the City of Buffalo HOME Program, an M&T Bank construction loan, the New York State Energy Research and Development Authority and Federal Low Income Housing Tax Credits.
The Lackawanna Homes project involves the construction of 48 single-family homes and one community building in a targeted revitalization neighborhood in Lackawanna. Eight units will be made available to the physically disabled. The Affordable Housing Program funds will be used for construction and permanent financing in order to make the project affordable to the target population. Empowerment services to be provided to residents include job readiness and employment services; homebuyer education and foreclosure prevention workshops; GED and training programs; health and wellness workshops; and a tenant association. First Niagara Bank submitted the application for this funding. Other funding sources include Federal Low Income Housing Tax Credit, Erie County HOME funds, First Niagara Bank and the New York State Housing Trust Fund.
The Niagara Community Action Program project involves the rehabilitation of 20 units of owner-occupied housing located in Niagara County. The targeted occupants are very low-income families. Included among the population that the program will serve are the elderly, veterans, and single-parent households. This project will significantly add to the revitalization and stabilization of the community. M&T Bank submitted the application for this funding. Additional financing will be provided by the New York State Affordable Housing Corporation and the New York State Homes and Community Renewal Weatherization Program.
The grants are part of $35.5 million in Affordable Housing Program (“AHP”) subsidies that the Federal Home Loan Bank of New York will award as its 2013 AHP grant round. In total, these grants will help finance 48 affordable housing initiatives which will create or preserve 3,072 units of affordable housing, including more than 2,200 units of very low-income housing, in New Jersey, New York, Puerto Rico, the U.S. Virgin Islands, Florida, Maryland and Pennsylvania. The 12 Federal Home Loan Banks have distributed more than $4.8 billion in AHP funds since 1990. At the Federal Home Loan Bank of New York, the AHP has supported 1,386 projects with nearly $475 million in grants, helping to create or preserve 60,250 units of affordable housing and generating an estimated $8.5 billion in total development costs. For more information on today’s grants, please visit www.fhlbny.com/news/pressrelease.htm.
The Federal Home Loan Bank System’s Affordable Housing Program, created in 1989, provides member community lenders with direct subsidies, which are passed on to qualified households through a sponsoring local non-profit organization. AHP financing is combined with other funding sources to create housing for moderate-, low- and very-low-income families. Program awardees receive this funding through semi-annual competitive rounds. Each competing project must be sponsored by a financial organization that is a member of the Federal Home Loan Bank in partnership with a community-based sponsoring organization.
