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BOSTON — The Federal Home Loan Bank of Boston (the Bank) awarded $4.1 million in grants, loans, and rate subsidies to fund 142 units of affordable housing in Augusta, Bath, Bristol, Camden, Kennebunk, Lewiston, Lincoln, Vinalhaven, and Waterville. Of that amount, more than $3.0 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.”

Congressman Tom Allen  added, “I applaud the Federal Home Loan Bank of Boston’s commitment to affordable housing in communities throughout Maine and across New England.” Even with the recent turmoil in the housing market, Maine continues to face an affordable housing shortfall, especially in our rural areas. I will continue to work with FHLB Boston, other members of Maine’s congressional delegation and advocates for affordable housing to offer Maine families better options for homes that fit within their budgets.”

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.

The mission of the Federal Home Loan Bank of Boston is to support the residential-mortgage and community-development lending activities of its members, which include over 450 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: Augusta                              
Member: Kennebec Savings Bank
Sponsor: Bread of Life Ministries
Number and Type of Units: 24 rental
Amount and Type of Subsidy: $262,662 grant

Kennebec Savings Initiative. Rehabilitation and conversion of the Lawrence House into 24 efficiency rental units for individuals. The building will reserve 16 units for very low-income households, four units for low-income households, and four units for households earning between 61and 80 percent of the area median income. Eight units will be reserved for homeless households. Residents will be provided GED classes, job training and placement, and ownership/financial-literacy counseling. A residents’ council will offer input into management decisions. In addition to the AHP grant, Kennebec Savings Bank will provide permanent financing.

Location: Bath                                   
Member: Bath Savings Institution
Sponsor: Habitat for Humanity/7 Rivers Maine
Number and Type of Units: 1 ownership
Amount and Type of Subsidy: $15,000 grant

Noble Avenue. Construction of an energy-efficient, two-bedroom home for a very low-income, first-time home buyer. The initiative is the sponsor’s third built in conjunction with Bath Iron Works, which has provided substantial fundraising, financial contributions, and volunteer labor. The land was donated by the City of Bath. Donated professional services and a zero-percent interest Habitat mortgage increase the home’s affordability. The home owners will receive first-time home-buyer counseling and contribute sweat equity in lieu of a cash down payment. Bath Savings Institution is providing a construction line of credit and a cash contribution.

Location: Bristol                                 
Member: Bath Savings Institution
Sponsor: Habitat for Humanity/7 Rivers Maine
Number and Type of Units: 3 ownership
Amount and Type of Subsidy: $81,000 grant

Easy Street/Coggins Road. Construction of three energy-efficient, single-family homes for households earning at or below 50 percent of the area median income. To enhance affordability, each family will receive a 30-year, zero-percent interest mortgage. All home buyers will provide sweat equity and receive homeownership counseling and financial-planning training. One of the three lots was donated. In addition to the AHP grant, Bath Savings Institution will provide a construction line of credit. Additional funding includes home-buyer down payments and sponsor cash contribution.

Location: Camden                                          
Member: Camden National Bank
Sponsor: Camden Affordable Housing Organization (CAHO)
Number and Type of Units: 12 ownership
Amount and Type of Subsidy: $360,000 grant

Lupine Terrace. Construction of energy-efficient three-bedroom homes on a 10-acre site for first-time home buyers earning less than 80 percent of area median income. The initiative will target five homes for very low-income families and seven homes for low- and moderate-income families. Residents will be provided daycare services and ownership/financial-literacy counseling, and will participate in a homeowners’ association and the Camden Affordable Housing Committee. In addition to the AHP grant, Camden National Bank will provide some of the first mortgage debt.

Location: Kennebunk                         
Member: Bangor Savings Bank
Sponsor: The Housing Partnership
Number and Type of Units: 41 rental
Amount and Type of Subsidy: $796,873 grant, $1 million advance

Bethesda House. Construction of two- and three-bedroom townhouses and flats, with 25 units reserved for households earning 50 percent or less of the area median income and 16 units for households earning between 51 and 60 percent of area median income. Nine units will be handicapped accessible. The Maine State Housing Authority and sponsor will execute a Land Use Restriction Agreement stipulating that the development remain affordable for 90 years. Residents will benefit from GED classes, daycare services, job training for home employment, and representation on the sponsor’s board of directors. The initiative will be funded with Low Income Housing Tax Credit equity, Maine State Housing Authority funds, and sponsor equity. In addition to the AHP grant, Bangor Savings Bank will provide the permanent financing through the AHP-subsidized advance.

Location: Lewiston                             
Member: Androscoggin Savings Bank
Sponsor: Tedford Housing
Number and Type of Units: 10 rental
Amount and Type of Subsidy: $400,000 grant

Lewiston Family Apartments. Construction of a two-story, 10-unit downtown residence for very low-income, homeless families. The development will consist of two one-bedroom, six two-bedroom, and two three-bedroom units along with an onsite laundry room, management office, and community room. Residents will receive supportive services, including ownership/financial-literacy counseling, daycare services, and employment, and participate in a residents’ council. The development will be constructed according to the Maine State Housing Agency’s green building standards. Both Lewiston and Auburn support the initiative and have pledged HOME funds. Additional funding comes from the Maine State Housing Agency, sponsor equity, and the Moseley Foundation. Besides the AHP grant, Androscoggin Savings Bank will provide a construction loan and permanent financing.

Location: Lincoln                                           
Member: Machias Savings Bank
Sponsor: Penquis CAP, Inc.
Number and Type of Units: 24 rental
Amount and Type of Subsidy: $395,000 grant

Lakeview Senior Housing Associates LP. Construction of energy-efficient senior housing on the site of a downtown commercial building destroyed by fire in 2003. Fifteen units will be targeted to very low-income households and nine units will be targeted to households with incomes between 51 and 60 percent of area median income. Residents will benefit from managed healthcare, access to nearby transportation, and representation on the sponsor’s board of directors. In addition to the AHP grant, Machias Savings Bank will provide a construction loan and purchase $500,000 in Low Income Housing Tax Credit equity. The initiative will also be funded with Low Income Housing Tax Credits and HOME funds from the Town of Lincoln. The land was donated by the Town of Lincoln.

Location: Vinalhaven                                      
Member: Camden National Bank
Sponsor: Community Housing of Maine, Inc.
Number and Type of Units: 6 rental
Amount and Type of Subsidy: $400,000 grant

53 High Street – Vinalhaven. Substantial rehabilitation and conversion of a commercial building into six units affordable for four very low-income and two moderate-income households. Residents will be provided a residents’ council, managed healthcare, micro-business training, and homeownership counseling. In addition to the AHP grant, Camden National Bank will provide construction financing and an acquisition loan. Other funding sources include HOME funds from the Maine State Housing Authority, Maine Department of Economic and Community Development, and grants from private foundations.

Location: Waterville                                       
Member: Bangor Savings Bank
Sponsor: WHA, Inc., a subsidiary of Waterville Housing Authority
Number and Type of Units: 21 rental
Amount and Type of Subsidy: $400,000 grant

Pleasant Crossing. Acquisition and construction of 21 energy-efficient units of senior rental housing on the site of a former YMCA. Eighteen one-bedroom and three two-bedroom units will be targeted to 13 very low-income households and eight households at or below 60 percent of area median income. An onsite resident services coordinator will be available to work with residents, and supportive services will include transportation, the establishment of a residents’ council, and financial planning. Funding comes from Bangor Savings Bank, Low Income Housing Tax Credit equity, and the Maine State Housing Authority.