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BOSTON — The Federal Home Loan Bank of Boston (the Bank) awarded $4.47 million to fund 162 units of affordable rental and ownership housing in Boston, Lawrence, Leominster, Lowell, North Reading, Turners Falls, and West Roxbury, Massachusetts. Of this amount, nearly $2.0 million 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.”

Congressman Stephen F. Lynch, member of the Financial Services Subcommittee on Housing and Community Opportunity, said, “As someone who grew up in public housing, I’ve seen the benefits that reliable, long-term affordable-housing initiatives can provide to struggling families. This funding provided by the Federal Home Loan Bank of Boston for the production and preservation of 132 affordable homes comes at a critical time. I am thankful that Michael Jessee and the Federal Home Loan Bank of Boston have acted to help ensure that struggling families across the state are given the opportunity to achieve the American dream.”

Congressman Martin T. Meehan added, “Affordable housing helps cities attract new residents and businesses, and is an essential part of the revitalization of the Merrimack Valley. Public-private partnerships such as this one with the Federal Home Loan Bank of Boston make that possible, and I am always pleased to support their efforts.”

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:	Boston, Massachusetts
	Member:	Wainwright Bank & Trust Company and Citizens Bank of Massachusetts
	Sponsor:	Interseminarian Project Place
	Units:	14 rental units
	Subsidy:	$250,000 grant
	Gatehouse
	Site acquisition and new construction on two floors of a mixed-use building in Boston’s South End. The initiative will provide 14 efficiency units that will be affordable for very low-income households. All tenants will be formerly homeless and provided employment opportunities, placement, and training, as well as educational services. Smart-growth elements include access to transit services, property reuse, a high-performance, energy-efficient design, and community-organizing opportunities. A reversionary interest in the property will be given to a qualified nonprofit entity. Wainwright Bank & Trust Company will provide bridge and permanent financing as well as a portion of the grant. The remaining portion of the grant will be provided by Citizens Bank of Massachusetts. Additional funding is provided by numerous other sources including equity raised through the use of New Markets Tax Credits. Approved in Round One of the 2006 AHP.

	Location:	Lawrence, Massachusetts
	Member:	Lawrence Savings Bank
	Sponsor:	Merrimack Valley Habitat for Humanity
	Units:	4 ownership units
	Subsidy:	$97,768 grant
	MV Habitat/Lower Tower Hill
	Construction of two duplexes to provide homeownership opportunities for first-time buyers. Seventy-one percent of the land in this initiative is being donated by a private individual. The sponsor will provide sweat equity, a homeowners’ association, financial planning, and homeownership counseling. Home buyers will give a right of first refusal to the sponsor to acquire the property in the event of a sale. Smart-growth elements include land reuse, access to mass transit, and a high-performance, energy-efficient design. Approved in Round One of the 2006 AHP.

	Location:	Leominster, Massachusetts
	Member:	Wainwright Bank & Trust Company
	Sponsor:	South Middlesex Opportunity Council, Incorporated (SMOC)
	Units:	16 rental units
	Subsidy:	$365,098 grant and subsidy, $400,000 advance
	School Street Supportive Housing
	Acquisition, preservation, and rehabilitation of a three-story lodging house to create service-enhanced single-room occupancy (SRO) units. The SROs will offer shared kitchen, baths, dining, and living areas for very low-income, formerly homeless individuals with diagnosable substance-abuse disorder, serious mental illness, developmental disabilities, or chronic physical illness or disability. The planned renovations will increase energy efficiency and satisfy federal, state, and local requirements. The sponsor’s sober-housing program focuses on the “peer group” model to empower residents and help them attain economic self-sufficiency. Residents will be provided managed health care, employment training, job placement, and a residents’ council that will encourage participation in the ongoing operations. Smart-growth elements include building reuse, access to public transportation, a high-density, energy-efficient design, and community organizing. Approved in Round One of the 2006 AHP.

	Location:	Lowell, Massachusetts
	Member:	Bank of America Rhode Island, N.A.
	Sponsor:	Planning Office for Urban Affairs
	Units:	42 rental units
	Subsidy:	$350,000 grant
	D'Youville Elderly Housing - Phase II
	New construction on the senior-care campus owned by the Sisters of Charity of Ottawa, adjacent to an existing 22-unit elderly complex to create service-enriched housing for the elderly. All units will be reserved for seniors with incomes under 50 percent of the area median. Common facilities will include kitchen, laundry, community room, and recreational areas. The sponsor is an experienced elderly service provider and will offer transportation assistance, managed health care, educational services, and a residents’ council. Smart-growth elements include land reuse, access to mass transit, and high-performance, energy-efficient design. Financing includes local and state HOME funds, Housing Innovation Funds, and a capital advance through HUD’s Section 202 program. Approved in Round One of the 2006 AHP.

	Location:	Turners Falls, Massachusetts
	Member:	Greenfield Savings Bank
	Sponsor:	Pioneer Valley Habitat for Humanity
	Units:	1 ownership unit
	Subsidy:	$29,627 grant
	Turners Falls Phase 1
	New construction of the first of two single-family homes for a first-time, very low-income home buyer. The property is located on a donated site previously occupied by a dilapidated multifamily structure. The town’s revitalization efforts have included Main Street Revitalization and upgrading the rental-housing stock. Habitat is the first program to introduce homeownership for very low-income households in this neighborhood and provides financial planning, sweat equity, and homeownership counseling. The town provided $350,000 towards the demolition and clean-up of the site, and Habitat utilizes a deed restriction to maintain affordability to home buyers for 50 years. Smart-growth elements include reuse of an existing site, access to public transportation, energy-efficient housing, and community-organizing opportunities. The AHP funds will reduce the sales price of the home. Approved in Round One of the 2006 AHP.

	Location:	North Reading, Massachusetts
	Member:	Reading Co-Operative Bank
	Sponsor:	Riverside Community Care
	Units:	5 rental units
	Subsidy:	$79,500 grant
	84 Chestnut Street
	Conversion of a new, modular construction single-family residence into a handicapped-accessible group home for very low-income individuals with severe cognitive and learning disabilities. Alternatives Unlimited, Inc. will be given a reversionary interest in the property. Residents will be provided managed health care, a residents’ council, transit services, and representation on the sponsor’s board of directors. Smart-growth elements include accessibility to transit services, property reuse, and high-performance, energy-efficient design. Reading Co-Operative Bank will provide permanent financing and additional funding is provided by sponsor equity. Approved in Round One of the 2006 AHP.

	Location:	West Roxbury, Massachusetts
	Member:	Wainwright Bank & Trust Company
	Sponsor:	The Community Builders, Inc.
	Units:	80 rental units
	Subsidy:	$799,605 grant and subsidy, $2.099 million advance
	Cheriton Heights
	New construction of a six-story brick-clad building to create a 90-unit mixed-income senior development in West Roxbury, Massachusetts. The project will provide 60 one-bedroom units at or below 50 percent of the area median income, 20 two-bedroom units at 51 to 60 percent of the area median income, and 10 market-rate units. All residents will have access to an onsite resident service coordinator and transportation, financial planning, a residents’ council, and managed health care. Smart-growth elements include land reuse, access to mass transit, and meeting the minimum requirements in the LEED Green Building Rating System. Wainwright Bank & Trust Company is providing permanent financing through an AHP-subsidized advance. Additional funding includes Low Income Housing Tax Credit equity, HUD Section 202, state and local HOME funds, state Affordable Housing Trust, Local Neighborhood Housing Trust Funds, and Energy Star Rebates. At the end of the tax-credit period, the Limited Partnership will give an option to purchase the property to the nonprofit corporation controlled by the sponsor. Approved in Round One of the 2006 AHP.