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BOSTON—The Federal Home Loan Bank of Boston (the Bank) awarded more than $1.8 million as grants and a subsidized loan to fund 33 units of affordable rental and ownership housing in three communities. Of that amount, more than $1.0 million is in the form of a grant and subsidy. In all, 24 initiatives in eight states received more than $22.8 million in grants, loans, and rate subsidies as part of the Bank’s Affordable Housing Program (AHP) to create or preserve 816 rental and ownership units for very low-, low-, and moderate-income individuals and families.

Each year, the Bank commits 10 percent of its net profits to provide grants and subsidized, below market-rate loans through the AHP. “The awards will help stimulate economic development during these tough times,” said Michael A. Jessee, the Bank’s president and chief executive officer. “I commend our member banks for their efforts to increase the stock of decent affordable housing in our communities.”

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 17, 2009.

The mission of the Federal Home Loan Bank of Boston is to support the residential-mortgage and community-development lending activities of its members, which include over 450 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: Greenwich
Member: Connecticut Community Bank, N.A.
Sponsor: Pathways, Inc.
Units: 24 rental
Subsidy: $754,193 grant and subsidy, $800,000 advance   
Pathways-Connecticut Community Bank. Refinance and rehabilitation of three scattered-site buildings to create 24 energy-efficient units for individuals with special needs, including elders with severe and persistent mental illness. Twenty-four units will be reserved for very low-income individuals, including nine for the formerly homeless, and four will be market rate. Residents will benefit from services provided by the sponsor under contract with the Department of Mental Health and Addiction Services in a community-based setting. Connecticut Community Bank, N.A. provides the permanent financing through the AHP-subsidized advance, and other funding comes from the sponsor and a CDBG grant from the Town of Greenwich.

Location: Hartford
Member: Windsor Federal Savings & Loan Association
Sponsor: Hartford Area Habitat for Humanity
Units: 4 ownership
Subsidy: $100,000 grant       
Clay Arsenal Neighborhood Initiative. Property acquisition and construction of four ownership units for very low-income residents. Residents will complete 150 hours of sweat equity and receive job-placement, ownership-counseling, financial-literacy, and employment training services. Residents will also have the opportunity to be part of neighborhood watch clubs. Windsor Federal Savings and Loan Association provides construction financing and the sponsor will raise additional funding through charitable giving.

Location: New Haven
Member: People’s United Bank
Sponsor: Neighborhood Housing Services of New Haven (NHS)
Units: 5 ownership
Subsidy: $150,000 grant