Back

BOSTON — The Federal Home Loan Bank of Boston (the Bank) awarded nearly $2.9 million to fund 110 units of affordable rental and ownership housing in Massachusetts. Of this amount, more than $1.36 million was in the form of a grant or advance subsidy. In all, 12 initiatives in New England received more than $14.5 million in grants, loans, and rate subsidies as part of the Bank's Affordable Housing Program (AHP) to create or preserve 361 rental and ownership units for very low-, low-, and moderate-income individuals and families.

The Bank sets aside 10 percent of its net profits each year to provide grants and subsidized, below market-rate loans through the AHP. "Members and their community partners turn to the AHP as an important resource for funding affordable housing," said Michael A. Jessee, the Bank's president and chief executive officer. "Together we're helping to increase the supply of affordable housing throughout New England."

Congressman Michael Capuano added, "This funding from the Federal Home Loan Bank of Boston and Wainwright Bank will help the Visiting Nurses Association (VNA) complete work on its Senior Living Community in Somerville. This is a worthwhile project, not just because it will increase the city's affordable housing stock, but because it will offer important services for elderly residents, including handicapped accessibility in all units, a wellness center, a library, a workforce development center, and space for attendant health care. Affordable housing for seniors is becoming increasingly scarce in Somerville, and the VNA project will allow more longtime residents to remain in the city."

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 and final round of this year's AHP awards is September 30, 2005.

The Federal Home Loan Bank of Boston (www.fhlbboston.com) is a $45 billion, cooperatively owned wholesale bank for housing finance in the six New England states. Its mission is to support the residential-mortgage and community-development lending activities of its members, which include over 460 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. For more information, see our backgrounder.

The Awards

	Location:	Amesbury, Massachusetts
	Member:	Newburyport Five Cents Savings Bank
	Sponsor:	Simple Living, Inc.
	Units:	18 rental units
	Subsidy:	$366,825 grant and advance subsidy, $475,000 advance
	Sally's Place
	Acquisition of a vacant nursing home and rehabilitation into an 18-unit supportive housing facility for very low-income, homeless women recovering from substance abuse. Seventeen units will provide longer-term, transitional housing and one unit will provide emergency shelter. The sponsor will provide a range of supportive services, including transportation assistance, health care, and substance-abuse counseling, to help residents move toward self-sufficiency. Residents will be involved in the daily management of their housing and will be eligible to participate on the sponsor's board of directors. This initiative achieves economic diversity by providing housing for very low-income persons in a higher-income community, and fulfills smart-growth objectives by reusing an existing building, providing access to public transportation, achieving a density of at least eight units per acre, and offering community-service opportunities for residents. The member is providing permanent financing through the AHP-subsidized advance, which will be used for construction, rehabilitation, construction contingency, acquisition, and other soft costs. Additional funding comes from HOME funds. Approved in Round One of the 2005 AHP.

	Location:	Lawrence, Massachusetts
	Member:	Pentucket Five Cents Savings Bank
	Sponsor:	Bread and Roses Housing, Inc.
	Units:	2 ownership units
	Subsidy:	$49,900 grant
	Bread and Roses Housing, Inc.
	New construction of a duplex for two very low-income, first-time home buyers on land donated by the City of Lawrence. The sponsor will own the land in trust and give the buyers a 99-year ground lease to ensure long-term affordability. This initiative fulfills smart-growth objectives by reusing previously built-on land, providing access to public transportation, and achieving a density greater than eight units per acre. Supportive services will include daycare, a college resources program, employment training, and pre- and post-purchase counseling. Home owners will help design the homes, will be eligible to serve on the sponsor's board of directors, and will have civic leadership opportunities though the Monmouth Street Neighborhood Association and the Affordable Housing Action Alliance in Lawrence. Pentucket Five Cents Savings Bank will provide construction financing and first mortgages for the home buyers. Bread and Roses, Inc. will provide a soft second mortgage. Additional funding will come from the City of Lawrence's HOME funds and a number of private foundations. AHP funds will be used for construction and rehabilitation. Approved in Round One of the 2005 AHP.

	Location:	Northampton, Massachusetts
	Member:	Florence Savings Bank
	Sponsor:	Pioneer Valley Habitat for Humanity
	Units:	2 ownership units
	Subsidy:	$59,945 grant
	Westhampton Road - Phase 2
	New construction of a duplex on land donated by the Town of Northampton will create two homes for very low-income, first-time home buyers. The sponsor is developing two additional duplexes on this site. Home buyers will have access to financial literacy training, employment training, and employment opportunities as well as pre- and post-purchase counseling. Home buyers will participate in the design of the homes, provide sweat equity, receive condominium training, and serve on committees of the sponsor?s board of directors. The sponsor will have an option to purchase the homes in the event the home buyers wish to sell or refinance. This initiative is accessible to public transportation, builds high-performance housing, and offers community organizing and leadership opportunities. Florence Savings Bank will provide a construction line of credit. AHP funds will be used for construction and rehabilitation as well as other soft costs. Approved in Round One of the 2005 AHP.

	Location:	Somerville, Massachusetts
	Member:	Wainwright Bank & Trust Company
	Sponsor:	Visiting Nurses Association (VNA)
	Units:	72 rental units
	Subsidy:	$598,861 grant and advance subsidy, $750,000 advance
	VNA Senior Living Community
	New construction on the site of a formerly abandoned school will create 95 units of service-enriched rental housing for the elderly. Of the 95 units, 72 units will serve seniors under 60 percent of area median income and 23 units will be without income restrictions above 80 percent of area median income. All units will be one-bedroom and handicapped accessible. Common facilities will include kitchen, dining room, country store, beauty salon, library, community room, wellness center, regional workforce development and training center, recreational areas, and spaces for attendant health care and housekeeping staff. The VNA will work closely with the Housing Authority to develop activities for residents. The member is providing a construction advance of $8.7 million and a $750,000 permanent advance, and AHP funds will be used for acquisition, construction, rehabilitation, and other soft costs. Approved in Round One of the 2005 AHP.

	Location:	Worcester, Massachusetts
	Member:	Middlesex Savings Bank
	Sponsor:	South Middlesex Opportunity Council, Incorporated (SMOC)
	Units:	16 rental units
	Subsidy:	$285,389 grant and advance subsidy, $300,000 advance
	Claremont Street
	Renovation and construction of a former apartment and lodging house will create 16 units of permanent housing for very low-income, formerly homeless individuals. SMOC will develop individual service plans for substance-abuse, mental-health, and other medical services and assist with employment-search and life-skills management. Residents will participate in community life, including the local neighborhood crime watch, and tenants will be expected to help manage the property's operation. The AHP grant will be used for acquisition, construction, rehabilitation, and other soft costs. The member will also provide a construction loan and permanent subsidized advance for $300,000. Approved in Round One of the 2005 AHP.