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 Back
BOSTON — The Federal Home Loan Bank of Boston (the Bank)
awarded nearly $2.3 million to fund 57 units of affordable
rental and ownership housing in Bath, Kittery, and South Portland.
Of that sum, $924,313 is 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 the 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 Thomas H. Allen added, "Maine is experiencing
a crisis in housing, especially for low-income families and
individuals. The Federal Home Loan Bank of Boston's Affordable
Housing Program is helping to meet the burgeoning demand for
affordable housing units for qualified Maine families to purchase
or rent. I applaud their efforts and look forward to working
with the Bank to find other ways to make affordable housing
available to more Maine people."
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 second 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
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Location: |
Bath, Maine |
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Member: |
Chittenden Trust Company |
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Sponsor: |
Bath Housing Development Corporation |
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Units: |
6 ownership units |
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Subsidy: |
$180,000 grant |
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New Communities Housing Cooperative of Bath |
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New construction of a nine-unit, limited-equity cooperative on a cleaned-up brownfield donated by the Bath Iron Works. Six units will be affordable for very low- to low-income families and three units will be sold at market rate. This is the first limited-equity cooperative in Maine. The sponsor will facilitate access to educational and employment-training services and provide pre- and post-purchase homeownership counseling, and the City of Bath will provide leadership-development training. Residents have participated in the design of this housing and will provide sweat equity. They will also have the opportunity to participate in the cooperative association and serve on the sponsor's board of directors. Chittenden Trust Company is providing construction financing, and other funding includes conventional permanent financing, Community Development Block Grant funding from the Maine Office of Community Development, and an additional grant from the City of Bath. The AHP grant will be used for construction costs.
Approved in
Round Two of the 2004 AHP.
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Location: |
Kittery, Maine |
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Member: |
Kennebunk Savings Bank |
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Sponsor: |
York County Shelters |
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Units: |
8 rental units |
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Subsidy: |
$182,354 grant and $270,000 advance |
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Coming Home Project |
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Acquisition and rehabilitation of two properties to create apartments for eight very low-income homeless individuals challenged with mental illness and/or substance abuse. One property will provide four one-bedroom units for more independent living and the second property will contain two, two-bedroom apartments, providing SRO-type units for more supported living. Residents will benefit from individualized supportive services, including case management, vocational training, and transportation assistance. Residents will have the opportunity to serve on the sponsor's board of directors and a residents' council. Kennebunk Savings Bank will provide construction financing as well as permanent financing through the AHP-subsidized advance. Additional funding sources include grants from the Maine State Housing Authority and the U.S. Department of Housing and Urban Development. The AHP grant will be used for construction and rehabilitation costs.
Approved in
Round Two of the 2004 AHP.
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Location: |
South Portland, Maine |
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Member: |
Bangor Savings Bank |
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Sponsor: |
Avesta Housing |
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Units: |
43 rental units |
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Subsidy: |
$300,000 grant and $1,100,000 advance |
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Brickhill Cottages |
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Rehabilitation of five historic brick buildings, formerly used as dormitories and classrooms for the Maine Youth Center, to create 43 rental apartments. Twenty-six units will be affordable for very low-income families and 17 apartments will be affordable for households earning 51 to 60 percent of the area median income. The State of Maine is donating the land through a 90-year ground lease. Peoples Regional Opportunity Program will offer daycare services, the South Portland Housing Authority will provide family self-sufficiency programs, and the sponsor will furnish a resident-services coordinator. Residents will have the opportunity to serve on the sponsor's board of directors and the residents' council. This initiative is located near public transportation and is designed to be energy efficient. Residents will participate in a neighborhood crime-watch program. Bangor Savings Bank will also provide an AHP-subsidized advance to fund the permanent loan. Additional funding includes Low Income Housing Tax Credits, the Maine State Housing Authority, and tax-increment financing from the City of Portland. The AHP funds will be used for construction and rehabilitation costs.
Approved in
Round Two of the 2004 AHP.
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