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 Back
BOSTON — The Federal Home Loan Bank of Boston (the Bank)
awarded nearly $2.3 million to fund 93 units of affordable
rental and ownership housing in Rhode Island. Of this amount,
nearly $900,000 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."
Senator Jack Reed (D-RI), a member of the Senate Housing
Committee, stated, "This is an outstanding contribution
to the effort to provide safe, decent, and affordable housing
in Rhode Island. The state, like many other states, is facing
a crisis where hardworking families are struggling to afford
a mortgage or rent. These grants will provide welcome opportunities
for those families."
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
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Location: |
North Smithfield, Rhode Island |
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Member: |
Citizens Bank of Rhode Island |
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Sponsor: |
Woonsocket Neighborhood Development Corporation |
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Units: |
80 rental units |
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Subsidy: |
$599,011 grant and advance subsidy, $1.38 million advance |
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The Meadows |
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New construction on a 4.2 acre site to create 80 units for individuals over the age of 55. Sixty-six percent of the units will be for individuals with very low-income, and the remaining 34 percent target those between 51 and 60 percent of area median income. Supportive services will be coordinated by Woonsocket Neighborhood Development Corporation, and the sponsor will also partner with the Gray Panthers of Rhode Island to involve residents in their own health-care and quality-of-life issues. This initiative promotes smart-growth principles by reusing land, providing access to public transportation, and achieving a density greater than eight units per acre. Citizens Bank of Rhode Island will provide a permanent AHP-subsidized advance of $1.38 million. Additional funding will come from the HUD 202 Capital Grant and Low Income Housing Tax Credits. AHP funding will be used for construction and rehabilitation.
Approved in
Round One of the 2005 AHP.
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Location: |
Providence, Rhode Island |
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Member: |
Washington Trust Company |
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Sponsor: |
Greater Elmwood Neighborhood Services |
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Units: |
12 ownership units |
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Subsidy: |
$300,000 grant |
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Parkis Homeowners Group |
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Rehabilitation of three historic buildings to create a 16-unit condominium complex for first-time home buyers in the Elmwood neighborhood. Located in a very low-income community, this initiative will offer homeownership opportunities for 12 very low- to low-income households as well as four market-rate units. Home buyers will have access to daycare, employment training, and education services. Current residents are involved in the design of this initiative and future homeowners will participate on the sponsor's board of directors. All home buyers will take part in pre- and post-purchase counseling. The sponsor will create a deed restriction that includes the right of first refusal should a buyer wish to sell. This initiative will fulfill smart-growth objectives by reusing land, providing access to public transportation, achieving a density of at least eight units per acre, building energy-efficient housing, and contributing to civic leadership and crime-watch efforts. AHP funds will be used for construction, rehabilitation, and other soft costs, and Washington Trust Company will provide some of the first mortgages.
Approved in
Round One of the 2005 AHP.
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