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BOSTON — The Federal Home Loan Bank of Boston (the Bank)
awarded a $300,000 grant to fund 18 units of affordable rental
housing in Groton. 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."
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: |
Groton, Vermont |
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Member: |
Merchants Bank |
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Sponsor: |
Housing Vermont |
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Units: |
18 rental units |
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Subsidy: |
$300,000 grant |
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Groton Village Revitalization |
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Rehabilitation of five historic buildings located in the center of Groton. This initiative is the centerpiece of an effort to rebuild the town square and will create 19 units of rental housing ? 18 units for very low-income families and one market-rate unit. This project serves as a catalyst to rebuild a small rural town in need of significant investment and, besides housing, provides space for a new town library, general store, small businesses, and streetscape and park improvements. This is a community undertaking with strong support within the town. This project, developed by Housing Vermont, is funded with both Low Income Housing Tax Credits and Historic Tax Credits. Non-AHP funding is being used to finance the nonresidential space. Merchants Bank, in addition to sponsoring the AHP application, will provide a $570,000 construction loan. The AHP grant will be used for construction and rehabilitation costs.
Approved in
Round Two of the 2004 AHP.
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