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CONNECTICUT RECEIVES $1.2 MILLION IN FUNDING

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For Immediate Release
December 9, 2004
Contact: Mark Zelermyer
617-292-9750
mark.zelermyer@fhlbboston.com

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BOSTON — The Federal Home Loan Bank of Boston (the Bank) awarded nearly $1.25 million to fund 35 units of affordable housing in Bridgeport, Farmington, Middletown, and New Haven. Of this amount, $737,282 was in the form of grants or subsidies. In all, 17 initiatives in New England received nearly $10.3 million in grants, loans, and rate subsidies as part of the Bank's Affordable Housing Program (AHP) to create or preserve 385 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. "Affordable housing is a cornerstone of the Federal Home Loan Bank of Boston's mission," said Michael A. Jessee, the Bank's president and chief executive officer. "Beyond the funding, we are proud of the program's record of bringing people together to help alleviate the housing-affordability crisis."

Representative Christopher Shays added, "I am grateful for the Federal Home Loan Bank of Boston's support of my hometown, Bridegport, and their funding of 25 rental units for very-low, low-, and moderate-income residents of our community. Affordable housing is a key element to a stable community and the Federal Home Loan Bank of Boston is a leader in improving neighborhoods 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 by a competitive scoring process. The application deadline for the first round of next year's AHP awards is April 29, 2005.

The Federal Home Loan Bank of Boston (www.fhlbboston.com) is a $42 billion, 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: Bridgeport, Connecticut
Member: Webster Bank, N.A.
Sponsor: United Cerebral Palsy Association of Southern Connecticut
Units: 25 rental units
Subsidy: $240,000 grant and $510,000 advance
Olde School Commons

Conversion and rehabilitation of a donated school building into 25 rental units for families and individuals with annual incomes at 25, 50, and 60 percent of the area median income. All apartments will be accessible and adaptable for people with disabilities. The initiative is located close to a major supermarket, pharmacy, community-health services, banks, churches, restaurants, and public transportation. The sponsor has a comprehensive plan to help residents transition from nursing homes and/or develop work skills. In addition to sponsoring the AHP application, Webster Bank, N.A. is providing both a construction loan and a long-term permanent loan. The AHP funds will be used for construction and rehabilitation costs. Approved in Round Two of the 2004 AHP.


Location: Farmington, Connecticut
Member: Webster Bank N.A.
Sponsor: Hartford Area Habitat for Humanity
Units: 1 ownership unit
Subsidy: $10,000 grant
Hartford Area Habitat for Humanity Homes

New construction of a three-bedroom, single-family home on a lot donated by the Town of Farmington. The Victorian-style home will be two stories with a full basement and a garage. The Habitat Family Services Coordinator has accepted a qualified, very low-income home buyer. Habitat began working on the site in May 2004, and the house is being built almost completely by volunteers. The new homeowner will benefit from Habitat's family-assistance program and a landscaping plan that utilizes native species as a cost-effective way to provide an attractive and functional outdoor space for the family. Webster Bank, N.A. is also providing a $10,000 construction loan. The AHP grant will be used for construction costs. Approved in Round Two of the 2004 AHP.


Location: Middletown, Connecticut
Member: Liberty Bank
Sponsor: The Connection, Inc.
Units: 2 ownership units
Subsidy: $50,000 grant
Military Road Homeownership

New construction of two detached, three-bedroom, ranch-style homes for sale to very low-income, first-time home buyers. The homes will be constructed on land donated by the Middletown Housing Partnership Trust through a 99-year ground lease. Home buyers will receive comprehensive supportive services, including family self-sufficiency programs and employment training. Home buyers will also receive pre- and post-purchase counseling and have the opportunity to participate on the Middletown Housing Partnership Trust's board. The initiative is located near mass transportation and will benefit from a variety of nearby community resources and amenities. Liberty Bank will provide financing for construction and the mortgage. The AHP grant will be used for hard construction costs. Approved in Round Two of the 2004 AHP.


Location: New Haven, Connecticut
Member: People's Bank
Sponsor: Fair Haven Development Corporation
Units: 7 ownership units
Subsidy: $175,000 grant
FHDC Homeownership Initiative II

Acquisition, rehabilitation, and construction of seven two-family, Victorian-style houses for very low-income home buyers. Three of the homes will consist of a gut rehabilitation of existing two-family houses; the remaining four will be prefabricated, two-family, Victorian-style houses that will blend in with the architectural fabric of the Fair Haven neighborhood. Each home is expected to contain one home-owner unit featuring three bedrooms, two full bathrooms, a dining room, a family room, a living room, and a two-bedroom rental unit, thus creating a total of 14 housing units. Fair Haven Development Corporation will provide pre- and post-purchase counseling and an empowerment/supportive services program, including employment, education, and homeownership services. People's Bank will provide mortgages to two home buyers and the AHP grant will be used for acquisition, construction, and rehabilitation costs and developer fees. Approved in Round Two of the 2004 AHP.



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