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BOSTON — The Federal Home Loan Bank of Boston (the Bank) awarded more than $1.2 million to fund 24 units of affordable rental housing in Salem, New Hampshire. Of this amount, $588,509 was in the form of a grant and advance subsidy. In all, 16 initiatives in New England received nearly $9.7 million in grants, loans, and rate subsidies as part of the Bank's Affordable Housing Program (AHP) to create or preserve 284 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. "In New England and elsewhere, demand for affordable housing far exceeds the supply," said Michael A. Jessee, the Bank's president and chief executive officer. "The Bank's AHP provides members and developers much needed funds to provide more New Englanders a safe, decent, and affordable place to live."

United States Senator John Sununu, a member of the Senate Committee on Banking, Housing, and Urban Affairs, said, "Senior citizens, the disabled, and low income individuals and families deserve the security and peace of mind of knowing that safe and affordable housing will be available to them if they need it. The many parties who have joined together on this initiative are to be commended for their foresight in working to make this goal a reality."

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 through a competitive scoring process. The application deadline for the first round of next year's AHP awards is April 28, 2006.

The Federal Home Loan Bank of Boston (www.fhlbboston.com) is a 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:	Salem, New Hampshire
	Member:	Salem Co-Operative Bank
	Sponsor:	Salem Housing Authority
	Units:	24 rental units
	Subsidy:	$588,509 grant and advance subsidy, $650,000 advance
	Salem Elderly Housing
	Acquisition and new construction of a 24-unit apartment building for the elderly and disabled on town-donated land. The facility will provide 20 one-bedroom and four two-bedroom units that will be affordable for 15 very low-income households and nine households earning between 51 and 60 percent of the area median income. The limited partnership will give a right of first refusal at the end of the tax credit period to the Salem Housing Authority. Economic empowerment services include employment training, financial planning, and transportation assistance. This initiative benefits from several smart growth elements including access to transit services; density; high-performance, energy-efficient housing; and resident-led crime watches. The member will provide construction financing and the permanent debt through the AHP-subsidized advance. Additional funding includes Low Income Housing Tax Credit equity and a grant from the New Hampshire Housing Finance Authority. Approved in Round Two of the 2005 AHP.