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BOSTON — The Federal Home Loan Bank of Boston (the Bank) awarded more than $2.5 million to fund 25 units of affordable rental and ownership housing in New Haven and Ridgefield, Connecticut. Of this amount, nearly $850,000 was in the form of a grant or advance subsidy. In all, 16 initiatives in New England received more than $13.2 million in grants, loans, and rate subsidies as part of the Bank’s Affordable Housing Program (AHP) to create or preserve 377 rental and ownership units for very low-, low-, and moderate-income individuals and families.

Each year, the Bank sets aside 10 percent of its net profits to provide grants and subsidized, below market-rate loans through the AHP. “Once again, our members and their community partners have come together to address the severe affordable-housing challenge facing our cities, towns, and neighborhoods,” said Michael A. Jessee, the Bank’s president and chief executive officer. “The AHP encourages our member financial institutions, community organizations, and local housing agencies to create housing opportunities for families and individuals throughout New England.”

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 29, 2006.

The Federal Home Loan Bank of Boston (www.fhlbboston.com) is a 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:	New Haven, Connecticut
	Member:	New Alliance Bank
	Sponsor:	Habitat for Humanity of Greater New Haven
	Units:	5 ownership units
	Subsidy:	$50,000 grant
	The Rosette Street Project
	Site acquisition and new construction of five three-bedroom homes that will be affordable for very low-income households in the Hill neighborhood of New Haven. Residents will be provided financial planning, a homeowners’ association, employment training, and an after-school program. This initiative benefits from several smart-growth elements including access to transit services, property reuse, and a high-performance, energy-efficient design. NewAlliance Bank will provide a $50,000 grant to the project and additional funding will be obtained through private fundraising. AHP funds will be used for construction. Approved in Round One of the 2006 AHP.

	Location:	Ridgefield, Connecticut
	Member:	Fairfield County Bank-Corp
	Sponsor:	Ridgefield Housing Authority
	Units:	20 rental units
	Subsidy:	$798,149 grant and subsidy, $1.7 million advance
	Prospect Ridge Affordable Housing Expansion
	New construction on town-donated land of four one-bedroom, eight two-bedroom, and eight three-bedroom units, which will be affordable for 15 very low- and five low-income households. Ridgefield Housing Authority will provide a reversionary interest in the property to the Town of Ridgefield. Adult daycare, child daycare, a family self-sufficiency program, and GED classes will be provided. Smart-growth elements include access to transit services, property reuse, and a high-performance, energy-efficient design. Fairfield County Bank-Corp will provide construction financing and permanent debt through the AHP-subsidized advance. Additional funding is provided by HOME Funds and the Connecticut Housing Finance Authority. AHP funds will be used for acquisition, construction, and other soft costs. Approved in Round One of the 2006 AHP.