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BOSTON — The Federal Home Loan Bank of Boston (the Bank) awarded more than $2.7 million to fund 97 units of affordable rental housing in Littleton, Nashua, Manchester, and Silver Lake, New Hampshire. Of this amount, nearly $1.7 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.”

“Bolstering the availability of affordable housing is critical to ensuring that low-income individuals have access to quality housing options,” said U.S. Senator John Sununu (R-NH), a member of the Senate Committee on Banking, Housing and Urban Affairs. “The initiatives supported through Boston’s Federal Home Loan Bank represent local partnerships, including public and private entities, that aim to meet the needs of the communities they serve. I have worked in the past to support community-based efforts in New Hampshire to expand access to affordable housing, and will continue to push legislation I’ve introduced in Congress to help low-income families and seniors achieve greater independence through increased housing opportunities.”

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:	Littleton, New Hampshire
	Member:	Connecticut River Bank, N.A.
	Sponsor:	Affordable Housing Education and Development, Incorporated (AHEAD)
	Units:	23 rental units
	Subsidy:	$400,000 grant
	Beattie House at Mt. Eustis Commons
	Renovation of two buildings on the former Littleton Regional Hospital site to create affordable housing for very low-income elders who are able to live independently or near independently. The sponsor will provide meal services, access to health care, transportation, housekeeping, education, and social activities in an effort to further enable residents to remain independent. The town has agreed to abate all real-estate taxes due until the project is fully occupied. The initiative supports community stability through the reuse of an existing building, access to transportation, energy-efficient design, and community organizing activities. This is a HUD-financed development and there will be no permanent debt. Approved in Round One of the 2006 AHP.

	Location:	Nashua, New Hampshire
	Member:	Merrimack County Savings Bank
	Sponsor:	Harbor Homes, Inc.
	Units:	20 rental units
	Subsidy:	$577,996 grant and subsidy, $760,000 advance
	Veterans Transitional Housing
	Acquisition, demolition, and construction of a three-story facility to create apartments for very-low income homeless veterans. The property will include 15 one-bedroom apartments and five two-bedroom apartments as well as common and program space and will help fill a housing need identified though the Greater Nashua Continuum of Care. The sponsor will provide individualized support services along with employment training, employment opportunities, financial planning, and transportation. The sponsor will give a right of first refusal to the Neighborhood Housing Services of Greater Nashua. Smart-growth elements include land reuse; access to mass transit; a high-performance, energy-efficient design; and participation in neighborhood-watch public-safety activities. Merrimack County Savings Bank is providing the construction and permanent financing, and will use the AHP-subsidized advance for half of the permanent debt. Additional funding includes capital and operating grants from the U.S. Department of Veterans Affairs, state HOME funds, grant funds from the city including CDBG, private charitable contributions, and sponsor equity. Approved in Round One of the 2006 AHP.

	Location:	Manchester, New Hampshire
	Member:	Citizens Bank New Hampshire
	Sponsor:	Manchester Housing and Redevelopment Authority
	Units:	34 rental units
	Subsidy:	$299,885 grant and subsidy, $300,000 advance
	Brown School Congregate Housing
	Redevelopment of a former elementary school to create congregate housing for low-income elderly and disabled populations. Seven units will be dedicated for homeless individuals. The building has remained unused since 1986 and has had a negative influence on the neighborhood. The Manchester Housing and Redevelopment Authority (MHRA) purchased the property from the city. The sponsor will provide education, financial planning, managed health care, and transportation. Community stability is enhanced by the reuse of the school building, access to public transportation, energy-efficient design, and community-organizing and crime-watch activities. The sponsor has funding commitments from the New Hampshire Housing Finance Agency for tax credits and the city for HOME funds, and plans to use the AHP grant and subsidized advance through Citizens Bank New Hampshire for construction and rehabilitation. Approved in Round One of the 2006 AHP.

	Location:	Silver Lake, New Hampshire
	Member:	Northway Bank
	Sponsor:	Gibson Center for Senior Services
	Units:	20 rental units
	Subsidy:	$400,000 grant
	Silver Lake Landing Senior Housing
	Acquisition and modest rehabilitation of an apartment building to preserve 20 units of affordable housing in Carroll County. Twelve apartments will be reserved for very low-income households and eight units will be affordable for households earning between 51 to 80 percent of the area median income. The sponsor will partner with other agencies to provide transportation assistance, managed health care, and education services. In addition, a resident will serve on the sponsor’s board of directors. The sponsor will give Ossipee Concerned Citizens an option to purchase the property. This initiative achieves smart-growth goals by preserving housing, providing access to transportation services, and including high-performance, energy-efficient improvements. The sponsor will fund a replacement reserve annually through cash flow. Financing includes private-foundation and charitable contributions, as well as a gift from the seller and sponsor equity. Northway Bank is providing a grant as well as bridge and permanent financing. Approved in Round One of the 2006 AHP.