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BOSTON—The Federal Home Loan Bank of Boston (the Bank) awarded $745,000 in grants to fund 57 units of affordable housing in Bridgeport, Meriden, and New London. In all, 25 New England initiatives received more than $16 million in grants, loans, and rate subsidies as part of the Bank’s Affordable Housing Program (AHP) to create or preserve 674 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. “Regardless of the economy, AHP funds always provide a welcome boost for affordable housing initiatives,” said Michael A. Jessee, the Bank’s president and chief executive officer. “Safe, decent, affordable housing is essential for everyone, and the Bank is proud to contribute to the well-being of the region.”

Congressman Christopher S. Murphy (D-5) added, “I am thrilled that Meriden will receive this grant not only because the funds will be used to revitalize an affordable housing location in the city, but also because the homes will include important energy efficient elements. This project will make a smart investment in affordable housing in our communities, and should be used as a model in future affordable housing endeavors.”

“I am grateful for this funding, which will create homeownership opportunities for first-time home buyers,” said Congressman Christopher Shays (R-4). “The need for high-quality affordable housing in Fairfield County cannot be overstated.”

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 18, 2008.

Information on the awards follows, and is also available at www.fhlbboston.com/ahp. For more information, see our backgrounder.

The Awards

Location: Bridgeport
Member: Connecticut Community Bank, N.A.
Sponsor: Habitat for Humanity of Coastal Fairfield County
Number and Type of Units: 20 ownership units
Amount and Type of Subsidy: $300,000 grant
Habitat Neighborhood Rebuild 8. Creation of 20 homeownership units for first-time home buyers on the East Side. This initiative involves the rehabilitation of a historic, multifamily building and construction of new homes on vacant and abandoned lots. Five single-family, three two-family, and 12 attached townhouses will be affordable to very low-income households. Residents will benefit from extensive services including sweat equity, financial planning, home-buyer counseling, and a homeowners’ association. Connecticut Community Bank, N.A. will provide construction financing.

Location: Meriden
Member: Bank of America Rhode Island, N.A.
Sponsor: Housing Authority of the City of Meriden
Number and Type of Units: 34 rental units
Amount and Type of Subsidy: $400,000 grant
Chamberlain Heights - Hollis Drive (Phase One). Rehabilitation and construction of 34 rental units in 10 vacant and blighted former public housing buildings. These units, which will incorporate energy-efficient elements, will serve 21 very low-income families and 13 families earning less than 60 percent of the area median income. This effort is the first of two phases to redevelop 124 public housing units in 34 buildings. The sponsor will provide economic empowerment services including daycare on site. Bank of America Rhode Island, N.A. will provide construction and permanent financing, and Low Income Housing Tax Credit equity will provide the majority of the capital funding.

Location: New London
Member: Liberty Bank
Sponsor: Habitat for Humanity of Southeastern Connecticut
Number and Type of Units: 2 ownership units
Amount and Type of Subsidy: $30,000 grant
Habitat Davis Farm Phase 1. Construction of two energy-efficient, three-bedroom homes and a public access road on donated land for sale to first-time home buyers—one very low-income and one earning less than 60 percent of the area median income. Home owners will provide sweat equity and the sponsor will offer economic empowerment services, including pre- and post-purchase homeownership counseling and computer training. This is the first of two phases of a six-home development. Liberty Bank is providing construction financing and private donations make up the balance of the funding.

Location: New London
Member: Liberty Bank
Sponsor: Habitat for Humanity of Southeastern Connecticut
Number and Type of Units: 1 ownership unit
Amount and Type of Subsidy: $15,000 grant
Habitat Rehab Project 385 Broad Street. Rehabilitation of a Victorian home built in 1884 to provide ownership housing for a homeless family earning less than 50 percent of the area median income. The property was donated by the previous owner. The sponsor and service providers in the area will provide the buyer with supportive services including homeownership counseling, financial training, and daycare, and the family will provide sweat equity. The sponsor will partner with Connecticut Light and Power to provide energy-efficient elements at no additional cost. The home owner will enter into an agreement with the sponsor to maintain long-term affordability on the home. While the project is primarily funded by donations and will be completed by volunteers, Liberty Bank will provide construction financing.