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BOSTON — The Federal Home Loan Bank of Boston (the Bank) awarded $441,754 to fund 28 units of affordable rental housing in Burlington, Vermont. Of this amount, $216,754 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."

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:	Burlington, Vermont
	Member:	Chittenden Trust Company
	Sponsor:	Housing Vermont
	Units:	28 rental units
	Subsidy:	$216,754 grant and advance subsidy, $225,000 advance
	Callahan Housing
	Renovation of six buildings to create 28 rental units. Sixteen units will serve households at or below 50 percent of area median income (AMI) and 12 will serve households between 51 and 60 percent of AMI. Three of the six buildings were previously funded through AHP funds but they have completed their retention period and the mortgages have been discharged. The initiative is located in the Old North End and is close to numerous social service centers. Daycare, after-school programs, and employment training will be available to the residents. One resident will be elected by the other residents to serve on the board of directors. The member is providing $225,000 in permanent loans, and AHP funds will be used for construction and rehabilitation. Approved in Round Two of the 2005 AHP.