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BOSTON — The Federal Home Loan Bank of Boston (the Bank) awarded nearly $9.3 million in grants, loans, and rate subsidies to fund 240 units of affordable rental and ownership housing in Boston, Greenfield, Ipswich, Lawrence, Newton, Northampton, New Bedford, North Chelmsford, Pittsfield, Roxbury, Spencer, Turners Falls, and Westfield. Of that amount, more than $4.3 million is in the form of grants or subsidies. In all, 28 initiatives received more than $17.5 million in grants, loans, and rate subsidies as part of the Bank’s Affordable Housing Program (AHP) to create or preserve 445 rental and ownership units for very low-, low-, and moderate-income individuals and families.

Each year, the Bank commits 10 percent of its net profits to provide grants and subsidized, below market-rate loans through the AHP. “The credit crisis has made the need for affordable housing even greater,” said Michael A. Jessee, the Bank’s president and chief executive officer. “Now more than ever, working families, seniors, and special needs populations need decent housing, and I’m proud that our contribution will help make that a reality for more than 400 individuals and families.”

Representative Barney Frank (D-Newton) added, “I am proud that I was able to follow the lead of the late Henry B. Gonzalez in the successful fight to establish the Federal Home Loan Banks’ Affordable Housing Program. It has worked so well that it is now the model for the affordable housing program we are currently moving to establish.”

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 12, 2008.

Information on the awards follows, and is also available at www.fhlbboston.com/ahp. For more information, see our backgrounder.

The Awards

Location: Boston                                            
Member: Bank of America Rhode Island, N.A.
Sponsor: Pine Street Inn, Inc.
Number and Type of Units: 37 rental
Amount and Type of Subsidy: $325,000 grant

38-42 Upton Street. Acquisition and extensive rehabilitation of three historic brownstone row houses in the South End to provide single-room-occupancy housing for 36 very low-income individuals. Thirty units will be set aside for the formerly homeless, and one additional manager’s unit will be targeted for an individual earning between 51 and 60 percent of the area median income. Green building features will enhance energy efficiency while preserving the building’s historic elements. The initiative will have an extensive social service component including 24-hour staffing. In addition to the AHP grant, Bank of America Rhode Island, N.A. will provide a construction loan to the project. Additional funding includes grants from the City of Boston HOME, Commonwealth of Massachusetts HOME funds, Housing Innovation Funds, and Neighborhood Housing Trust Funds. 

Location: Greenfield                                       
Member: Greenfield Co-Operative Bank
Sponsor: DIAL/SELF Teen Services
Number and Type of Units: 10 rental
Amount and Type of Subsidy: $400,000 grant

196 Federal Street. Rehabilitation of a historic Queen Anne home into 10 efficiency units for homeless at-risk youth. Six units will be reserved for very low-income individuals and four units will be reserved for individuals with incomes between 51 and 80 percent of the area median income. This two-year transitional housing initiative is designed to help youth, many of whom are aging out of the foster-care system and represent a high percentage of persons living in emergency shelters in Massachusetts. The sponsor will provide individualized services, including financial planning and job matching. In addition to the AHP grant, Greenfield Co-Operative Bank is providing construction financing and the permanent debt. Additional funding includes the Massachusetts Housing Innovations and Stabilization Funds and the Affordable Housing Trust Fund.

Location: Ipswich                                           
Member: Institution for Savings in Newburyport and its Vicinity
Sponsor: YMCA of the North Shore
Number and Type of Units: 48 rental
Amount and Type of Subsidy: $790,987 grant, $1.25 million advance

Powder House Village. Construction of 48 new units on land adjacent to an existing YMCA facility. Sixteen units will be reserved for very low-income households and 32 units for households earning between 51and 60 percent of the area median income. Residents will provide input into property management and benefit from daycare; after-school, weekend, and summer
youth programs; and self-sufficiency programs and training. The initiative will be funded by Low Income Housing Tax Credits, local and state HOME funds, Affordable Housing Trust funds, Massachusetts Housing Partnership, and sponsor equity. In addition to the AHP grant, the Institution for Savings in Newburyport and its Vicinity will provide a construction loan and permanent financing through the AHP-subsidized advance.

Location: Lawrence                                       
Member: Pentucket Five Cents Savings Bank
Sponsor: Bread and Roses Housing, Inc.
Number and Type of Units: 4 ownership
Amount and Type of Subsidy: $99,996 grant

Bread & Roses Housing 8. Construction of two duplexes on land donated by the Lawrence Housing Authority that will create four homeownership units for very low-income families. Each three-bedroom home will meet high-performance, energy-efficient standards. All families will receive homeownership counseling and be offered education and daycare services. Pentucket Five Cents Savings Bank will provide 80 percent of the permanent financing, Bread and Roses will provide approximately 20 percent of the permanent financing, and other funding will come from the City of Lawrence, the Stevens Foundation, and the McCarthy Memorial Trust Fund.

Location: Newton                                          
Member: Brookline Bank
Sponsor: Riverside Community Mental Health & Retardation Center, Inc.
Number and Type of Units: 8 rental
Amount and Type of Subsidy: $119,359 grant and subsidy, $239,521 advance

173 Tremont Street. Acquisition and rehabilitation of an existing building to provide eight units of energy-efficient housing for very low-income individuals with special needs. The sponsor will provide employment training, employment, transportation services, and other supportive services to encourage resident involvement in the community. In addition, 24-hour staff will be available to facilitate interaction, ensure safety, and support skill training and reinforcement. Brookline Bank will provide long-term financing with the AHP-subsidized advance.

Location: New Bedford                                             
Member: Citizens-Union Savings Bank
Sponsor: Community Action for Better Housing
Number and Type of Units: 8 rental
Amount and Type of Subsidy: $207,342 grant and subsidy, $225,000 advance

Penniman Street Homes. Acquisition and minor renovation of a foreclosed three-family property with seven single-room-occupancy units to preserve an existing transitional housing program serving disabled, homeless, very low-income adults. Residents will be referred from a homeless shelter operated by Market Ministries, and the program will provide financial planning, ESL, and GED classes, and a residents’ council. This initiative adheres to smart-growth principles, including land reuse, access to public transportation, and energy-efficiency, and will contribute to public safety through a crime watch. Rockland Trust Company will provide the AHP-subsidized advance to reduce the mortgage to a sustainable debt service level.

Location: North Chelmsford                                       
Member: Enterprise Bank and Trust Company
Sponsor: Chelmsford Housing Authority
Number and Type of Units: 37 rental
Amount and Type of Subsidy: $573,851 grant and subsidy, $1.38 million advance

CHOICE Center. Construction of 32 one-bedroom and five two-bedroom apartments for seniors on a campus created by the Chelmsford Housing Authority. Twenty-four units will be reserved for households who earn less than 50 percent of area median income and the remaining 13 units will be for households earning between 51 and 60 percent of area median income. This housing model will address the needs of low-income elders who need assistance to continue living independently. All residents will benefit from transportation, elder daycare, and managed healthcare. The initiative will be funded with Low Income Housing Tax Credits and Massachusetts Department of Housing and Community Development funds. In addition to the AHP grant, Enterprise Bank and Trust Company will provide a construction loan and permanent financing through the AHP-subsidized advance.

Location: Northampton                                  
Member: Florence Savings Bank
Sponsor: Pioneer Valley Habitat for Humanity
Number and Type of Units: 2 ownership
Amount and Type of Subsidy: $59,567 grant

Garfield Avenue - Phase 1. Construction of two townhomes on donated, formerly brownfield land to create ownership opportunities for very low-income, first-time home buyers. This initiative represents the first phase of a six-unit subdivision. The sponsor is partnering with Smith Vocational High School for construction, and the new home owners will provide sweat equity and receive employment and ownership/financial-literacy counseling, and micro-business lending. The “green” townhomes will include photovoltaic panels with funding from the Massachusetts Technology Collaborative Green Building Program. In addition to the AHP grant, Florence Savings Bank will provide a construction line of credit.

Location: Pittsfield                                          
Member: Berkshire Bank
Sponsor: United Veterans of America, Inc.
Number and Type of Units: 39 rental
Amount and Type of Subsidy: $360,981 grant and subsidy, $351,000 advance

Berkshire Veterans’ Village. Creation of 39 units of supportive housing for homeless veterans. Ten of the 39 units will be handicapped accessible and the remainder will be adaptable. The five wood-frame buildings and community center will be close to jobs, public transportation, educational institutions, and veterans’ services. The site hopes to be a national model and achieve LEED certification with green elements that include a biodiesel cogeneration facility for heat and electricity and photovoltaic panels. Supportive services will include employment training, family self-sufficiency, and job placement. A residents’ association will be actively involved in managing the property. Berkshire Bank will provide construction financing and the permanent debt through the AHP-subsidized advance. Grants and deferred loans from HUD and the Commonwealth of Massachusetts will provide additional funding.

Location: Roxbury                                         
Member: RBS Citizens, N.A.
Sponsor: Nueva Vida, Inc.
Number and Type of Units: 14 rental
Amount and Type of Subsidy: $567,387 grant, $800,000 advance

Nueva Esperanza. Demolition and construction of 14 studio apartments for very low-income, homeless individuals recovering from substance abuse. This property is adjacent to the sponsor’s parent organization, Nueva Esperanza, which will provide supportive services including employment training and managed health care. The property will be constructed and managed to be energy and water efficient. RBS Citizens, N.A. is providing construction financing and permanent debt through the AHP-subsidized advance. The Massachusetts Affordable Housing Trust Fund and Housing Innovations Fund plus HOME funding from the City of Boston will provide additional funding.

Location: Spencer                                          
Member: Chittenden Trust Company
Sponsor: South Middlesex Opportunity Council, Incorporated (SMOC)
Number and Type of Units: 23 rental
Amount and Type of Subsidy: $612,697 grant, $680,000 advance

Main Street – Spencer. Acquisition, preservation, rehabilitation, and conversion of three adjacent two-story buildings to create permanent, affordable, energy-efficient housing for the formerly homeless. The facility will provide 18 single-room-occupancy units and shared kitchen, baths, dining, and living areas, four two-bedroom units, and one studio apartment. All 23 units will be reserved for very low-income individuals recovering from substance abuse. The sponsor will provide a comprehensive range of supportive services that address chronic homelessness. A live-in house manager will facilitate group food preparation, house meetings, and chores to help residents transition into permanent housing. In addition to the AHP grant, Chittenden Trust Company will provide the permanent financing with the AHP-subsidized advance.

Location: Turners Falls                                               
Member: Greenfield Savings Bank
Sponsor: Pioneer Valley Habitat for Humanity
Number and Type of Units: 1 ownership
Amount and Type of Subsidy: $29,955 grant

Turners Falls - Phase 2/53 L Street. Construction of a single-family, energy-efficient home on donated land for a very low-income, first-time home buyer. This initiative is the second of two homes to be built on this parcel. The home is being constructed in collaboration with Franklin County Technical High School Construction Trades Program, with high school students building the home during the week and Habitat volunteers completing the less technical aspects on the weekend. Home buyers will provide sweat equity and benefit from homeownership counseling and daycare services. The home will also include photovoltaic panels with funding from the Massachusetts Technology Collaborative Green Building Program. Greenfield Savings Bank will provide the construction line of credit.

Location: Westfield                                        
Member: Westfield Bank
Sponsor: DOMUS, Inc.
Number and Type of Units: 9 rental
Amount and Type of Subsidy: $200,000 grant

The Reed House Annex. Construction of a two-story, multifamily building to provide housing for very low-income, special-needs individuals. The initiative will create eight enhanced efficiency units and a one-bedroom unit for an income-eligible resident who will work as an onsite manager. The design will include community and program spaces, and residents will be provided GED classes, training, employment, transportation, and a residents’ council. The initiative will be funded by the Department of Housing and Urban Development, Massachusetts Department of Housing and Community Development, and MassHousing. In addition to the AHP grant, Westfield Bank will be providing a construction loan.