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MASSACHUSETTS RECEIVES $4.8 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 more than $4.8 million to fund 218 units of affordable rental and ownership housing in Boston, Chatham, Chelsea, Dorchester, Haverhill, Lawrence, and Worcester. Of that sum, nearly $2.8 million was in the form of grants and 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 Michael E. Capuano added, "Housing prices in the Greater Boston area are some of the highest in the nation. Thousands of families in my district and across Massachusetts are searching for an affordable place to live. With the help of this critical funding from the Federal Home Loan Bank of Boston, we will create more than 136 new units of desperately needed affordable-rental housing in Boston and Chelsea."

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: Boston, Massachusetts
Member: Citizens Bank of Massachusetts
Sponsor: Crittenton Hastings House
Units: 62 rental units
Subsidy: $300,000 grant
Crittenton Housing Project

Substantial rehabilitation of an existing 36-unit rental-housing project and renovation of underutilized commercial space to provide 26 new rental units. All units will serve very low-income, homeless households, with rental assistance available through the Department of Transitional Assistance and the City of Boston. Tenants will benefit from numerous supportive services, including life-skills training, educational opportunities, and employment training. In addition, tenants will participate in project management through a peer-leadership group and residents' council. The project is accessible to public transportation, has a density that exceeds eight units per acre, is designed to be energy-efficient, and provides community-organizing opportunities. Citizens Bank of Massachusetts will provide permanent financing as well as the AHP direct subsidy. Additional project funding will be provided by the Massachusetts Housing Innovation Fund and numerous private donors. The AHP grant will be used for legal fees and construction, rehabilitation, and other soft costs. Approved in Round Two of the 2004 AHP.


Location: Chatham, Massachusetts
Members: Wainwright Bank & Trust Company and Plymouth Savings Bank
Sponsor: The Community Builders, Inc.
Units: 47 rental units
Subsidy: $300,000 grant and $433,472 advance
Lake Street Affordable Housing

New construction of 16 buildings to create 47 modular apartments for very low- and low-income families. The Chatham Housing Authority is donating the land to the sponsor via a 99-year ground lease. Through a disguised-density design, the multifamily-building facades and unit layouts will emulate a single-family Cape Cod home with a modest addition. Service providers will offer daycare, employment training, and health-care resources for the residents. Residents are participating in the design of this initiative and will form a residents' council. Wainwright Bank & Trust will provide the permanent financing, including the AHP subsidized advance, and Plymouth Savings Bank will provide the AHP grant. Other funding will come from Low Income Housing Tax Credits, local and state HOME funds, developer equity, the Massachusetts Affordable Housing Trust Fund, and a Community Preservation Act grant from the Town of Chatham. The AHP funds will be used for construction costs. Approved in Round Two of the 2004 AHP.


Location: Chelsea, Massachusetts
Members: Wainwright Bank & Trust Company and Metropolitan Credit Union
Sponsor: HarborCOV
Units: 24 rental units
Subsidy: $300,000 grant and $750,000 advance
63 Washington Avenue

Rehabilitation and new construction to convert a two-story commercial building into a four-story residential facility serving 24 very low-income families recovering from domestic violence. Six of the units will be reserved for the homeless. The sponsor will provide comprehensive supportive services, including economic literacy/employment assistance, family stabilization, and civic participation. Residents will have the opportunity to participate in management by serving on the board of directors and the residents' council. Funding includes Low Income Housing Tax Credits, local and state HOME funds, Massachusetts Housing Innovation and Stabilization Funds, Massachusetts Affordable Housing Trust Fund, as well as funding from a Community Development Block Grant and the U.S. Department of Housing and Urban Development. Wainwright Bank & Trust is providing construction financing as well as permanent financing subsidized through the AHP. Metropolitan Credit Union will provide the AHP grant. The AHP funds will be used for construction and rehabilitation costs. Approved in Round Two of the 2004 AHP.


Location: Dorchester, Massachusetts
Members: Citizens Bank of Massachusetts and Citizens Bank of Connecticut
Sponsor: Dorchester Bay Economic Development Corporation
Units: 24 rental units
Subsidy: $300,000 grant and $575,459 advance
Dudley Village - Phase 1

Acquisition and rehabilitation of 24 units of rental housing to serve very low- and low-income households, including the homeless. The design of the four-story brick, metal, and stone-clad buildings is compatible with the existing urban scale of the Dudley Street corridor and enhances the neighborhood by redefining the prominent Dudley and East Cottage Street corner. The initiative will have 8,000 square feet of commercial space, which will be rented to an innovative local food business. The sponsor will provide supportive services for families, youth, and seniors, including summer camp and expeditions, parent/school organizing, community organizing, leadership development, computer learning, adult education, and job linkage. Citizens Bank, in addition to sponsoring the AHP application, is providing both a construction loan and a long-term permanent loan. The AHP funds will be used for construction, rehabilitation, and other soft costs. Approved in Round Two of the 2004 AHP.


Location: Dorchester, Massachusetts
Member: Fleet National Bank
Sponsor: Dorchester Bay Economic Development Corporation
Units: 26 rental units
Subsidy: $300,000 grant
Dudley Village - Phase 2

New construction of 26 units of rental housing on vacant lots donated by the City of Boston. Three, four-story row houses will be constructed for occupancy by 10 very low-income and 16 low-income households. Residents will benefit from a comprehensive range of supportive services, including technology training, youth education and recreation, and employment training. In addition, residents will help manage the property through the residents' council and have the opportunity to serve on the sponsor's board of directors. Fleet National Bank is providing construction and permanent financing in addition to the AHP grant. The project is located near public transportation, has a density in excess of eight units per acre, and is designed to be energy efficient. Residents will also benefit from and contribute to ongoing community organizing activities led by the Dudley Street Neighborhood Initiative. The AHP grant will be used to cover other soft costs. Approved in Round Two of the 2004 AHP.


Location: Haverhill, Massachusetts
Member: Pentucket Five Cents Savings Bank
Sponsor: Emmaus, Inc.
Units: 4 rental units
Subsidy: $134,000 grant
Applewood Apartments

Acquisition of a vacant parcel of land and construction to create four units of permanent, rental housing for very low-income, homeless families. One unit will be reserved for a family affected by domestic violence. Residents will receive comprehensive supportive services, including family self-sufficiency programs, educational resources, and employment training and opportunities. Residents will also participate in management decisions through a residents' council and provide input into the building's design, development, and other policy matters. The building's design will incorporate a variety of energy-efficiency components. The site is located near public transportation and a variety of community services in the heart of town. Pentucket Five Cents Savings Bank will provide a permanent loan of $165,000, while the $134,000 AHP grant will be used for hard construction costs. Approved in Round Two of the 2004 AHP.


Location: Lawrence, Massachusetts
Member: Pentucket Five Cents Savings Bank
Sponsor: Bread and Roses Housing, Inc.
Units: 2 ownership units
Subsidy: $49,500 grant
Bread and Roses Housing 5

New construction of a duplex for two very low-income, first-time home buyers. The sponsor will own the land in trust and give the buyers a 99-year ground lease to ensure that the homes remain affordable. Supportive services will include daycare, a college-resource program, and employment training as well as pre- and post-purchase homeownership counseling. Home buyers will participate in the design process and be eligible to serve on the sponsor's board of directors. The duplex is accessible to public transportation, has a density greater than eight units per acre, and is designed to be energy efficient. Home buyers will have civic-leadership opportunities though the Monmouth Street Neighborhood Association and the Affordable Housing Action Alliance in Lawrence. Pentucket Five Cents Savings Bank will provide construction financing and permanent financing for the home buyers. Additional funding will come from the City of Lawrence HOME funds and a number of private foundations. The AHP grant will be used for construction and rehabilitation costs. Approved in Round Two of the 2004 AHP.


Location: Worcester, Massachusetts
Member: Commerce Bank & Trust Company
Sponsor: South Middlesex Opportunity Council, Incorporated (SMOC)
Units: 29 rental units
Subsidy: $300,000 grant and $300,000 advance
Ann Pax Center for Women

Renovation and construction of a former nursing home to create 29 SRO units for formerly homeless women, including the elderly and disabled. When completed, the facility will provide permanent housing for very low-income women in a supportive environment. SMOC will provide the bulk of the rehabilitation services to residents, including help with issues related to substance and alcohol abuse and mental health. SMOC's statewide Mobile Resource Team will also assist with the employment-search process. Residents will participate in the local neighborhood crime-watch organization that will include the Green Hill Towers Tenant Association. This initiative is consistent with the SMOC sober-housing model of direct tenant participation in the management and operation of the housing development. In addition to the AHP grant, the member will provide both construction financing for $500,000 and permanent financing supported by a subsidized advance for $500,000. The AHP funds will be used for acquisition, construction, and rehabilitation costs. Approved in Round Two of the 2004 AHP.






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