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BOSTON — The Federal Home Loan Bank of Boston (the Bank)
awarded more than $1.6 million to fund 57 units of affordable
rental housing in Newport. Of that sum, nearly $560,000 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."
Seantor Lincoln D. Chafee added, "As Newport Heights
rises from the dust of Tonomy Hill, we're seeing a new form
of public housing, one that offers families stability, hope,
and opportunities for economic independence. I am grateful
for the Federal Home Loan Bank of Boston's support of the
project and look forward to celebrating the continued expansion
of this vibrant new community."
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: |
Newport, Rhode Island |
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Member: |
Bank of Newport |
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Sponsor: |
Trinity Financial, Incorporated |
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Units: |
57 rental units |
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Subsidy: |
$300,000 grant and $1,100,000 advance |
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Newport Heights - Phase 3 |
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Demolition of 91 substandard housing units in a large, subsidized affordable-housing development to create 71 units of mixed-income housing. Thirty-two units will serve very low-income households, 25 will serve low-income households, and 14 units will serve market-rate households. This initiative is the third phase of a plan to rebuild Newport's Tonomy Hill neighborhood, which includes a redesign to better integrate the site with the surrounding residential neighborhood. The development will be built on land donated by the Housing Authority of the City of Newport through a 75-year ground lease. Residents will receive comprehensive supportive services, including family self-sufficiency programs, employment resources, and case-management. Residents will have the opportunity to participate in management through a residents' council and a formal grievance committee. The $300,000 AHP grant will be used to pay for hard construction costs, while the Bank of Newport will use a $1.1 million subsidized advance to provide permanent financing through the purchase of tax-exempt bonds.
Approved in
Round Two of the 2004 AHP.
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