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BOSTON — The Federal Home Loan Bank of Boston (the Bank) awarded nearly $4.1 million to fund 127 units of affordable rental and ownership housing in Haverhill, Salem, Springfield, Topsfield, and Whitinsville, Massachusetts. More than $2.0 million is in the form of a grant or advance subsidy. In all, 15 initiatives in New England received almost $15.0 million in grants, loans, and rate subsidies as part of the Bank’s Affordable Housing Program (AHP) to create or preserve 449 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. “The AHP is an important way the Bank, our members, and local sponsors address the need for safe, decent affordable housing in New England,” said Michael A. Jessee, the Bank’s president and chief executive officer. “This round’s funds will help diverse population groups, including the elderly, the homeless, and the disabled.”

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 27, 2007.

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:	Haverhill, Massachusetts
	Member:	Pentucket Five Cents Savings Bank
	Sponsor:	Planning Office for Urban Affairs
	Units:	24 rental units
	Subsidy:	$597,678 grant and subsidy, $650,000 advance
	Granite Street Redevelopment
	Substantial rehabilitation of 24 low-income units within a mixed-use, mixed-income building of condominium units and commercial space. The development will consist of 18 two-bedroom and six one-bedroom units for 15 very low- and nine low-income households. This project ends the isolation of low-income households by providing housing opportunities in a city where the median household income equal or exceeds the median income for the Metropolitan Statistical Area (MSA). The sponsor will provide various supportive services, including educational opportunities, ownership counseling, and the opportunity to serve on the sponsor’s board of directors. Sources of funding for this project include Low Income Housing Tax Credits, HOME funds, and Pentucket Five Cents Savings Bank permanent financing. Approved in Round Two of the 2006 AHP.

	Location:	Salem, Massachusetts
	Member:	Bank of America Rhode Island, N.A.
	Sponsor:	Planning Office for Urban Affairs
	Units:	30 rental units
	Subsidy:	$755,269 grant and subsidy, $1.4 million advance
	St. Joseph's Redevelopment
	Acquisition, demolition, and construction of a six-story, mixed-use, mixed-income building that is part of a larger adaptive-reuse strategy for the St. Joseph’s parish property in the Point neighborhood. While these funds will be used for the 30 affordable rental units, this new building will also house 45 condominiums, 15 of which will be affordable, and a Community Life Center. The other buildings will be converted into additional market-rate condominiums. This initiative reuses land and buildings, is accessible to mass transit, utilizes many energy-efficient features, and promotes public safety through participation in a crime watch. The member will provide construction financing as well as the permanent financing through the AHP subsidized advance. Approved in Round Two of the 2006 AHP.

	Location:	Salem, Massachusetts
	Member:	Salem Five Cents Savings Bank
	Sponsor:	The Salem Mission
	Units:	22 rental units
	Subsidy:	$175,932 grant
	Seeds of Hope Campus
	Acquisition, rehabilitation, and conversion of two buildings into 22 single-room-occupancy units for homeless persons earning less than 30 percent of area median income. The first floor of one building will be wheelchair accessible; a two-bedroom unit will be reserved for the mobility-impaired, and all common areas will also be located in this building. The sponsor will provide a variety of supportive services, and the development will take advantage of energy-efficient, high-performance elements. The AHP grant will fund construction and supplement financing that includes HUD, Department of Housing and Community Development, and the sponsor’s capital campaign. Approved in Round Two of the 2006 AHP.

	Location:	Springfield, Massachusetts
	Member:	Wainwright Bank & Trust Company
	Sponsor:	Springfield Neighborhood Housing Services, Inc.
	Units:	9 ownership units
	Subsidy:	$207,000 grant
	Old Hill/Neighborhood Stabilization II
	New construction and rehabilitation of nine single-family homes. Five of the nine houses are located on the Old Hill and the remaining houses are in the Upper Hill and Bay areas. Each has three bedrooms and 1.5 bathrooms. Eight will be reserved for very low-income families and one will be earmarked for a low-income family. The sponsor will provide a variety of supportive services and the opportunity to serve on the sponsor’s board of directors. This initiative comes out of a partnership formed by Springfield College, the Urban League of Springfield, the City of Springfield, and the New Leadership Charter School, in association with Old Hill Neighborhood Council, to develop a master plan for transforming Old Hill and adjacent parts of the Upper Hill neighborhoods into a model of educational resources, new and rehabilitated housing, recreational space, and streetscapes. Approved in Round Two of the 2006 AHP.

	Location:	Topsfield, Massachusetts
	Member:	TD Banknorth, N.A.
	Sponsor:	Health & Education Services, Inc.
	Units:	37 rental units
	Subsidy:	$100,000 grant
	Nike Village Residences
	Substantial rehabilitation of 16 separate homes on a 2.75-acre open area on an 8.8-acre parcel surrounded by woods and rural farm land. The property, a deactivated federal missile base, was donated by the federal government to the sponsor in April 1998. The initiative will provide 37 single-room occupancy units serving homeless individuals with incomes below 30 percent of area median income. Supportive services include financial planning, transportation, and the establishment of a residents’ council. The project, which was previously granted an AHP award, will use these funds for infrastructure improvements, including a new water and sewer system, new underground telephone/data lines, and building improvements. Approved in Round Two of the 2006 AHP.

	Location:	Whitinsville, Massachusetts
	Member:	Benjamin Franklin Bank
	Sponsor:	Alternatives Unlimited, Inc.
	Units:	5 rental units
	Subsidy:	$200,000 grant
	Alternatives Mill Project
	Substantial rehabilitation and redevelopment of the historic Old Brick Mill into a multiuse building that will include a living museum, retail space, artisan gallery, and three two-bedroom units that will be operated as single-room-occupancy units for six persons with developmental disabilities. The initiative will target four persons earning less than 50 percent of area median income, one person earning between 51 and 60 percent, and one person earning more than 80 percent of area median income. The residents will receive a variety of supportive services including training, managed health care, and job placement. Smart-growth principles include the reuse of existing buildings, accessibility to transportation, and the use of high-performance, energy-efficient building technologies. The retail space will contribute to residential operations. Approved in Round Two of the 2006 AHP.