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BOSTON — The Federal Home Loan Bank of Boston (the Bank) awarded more than $10.2 million as grants, loans, and subsidies to fund 390 units of affordable rental and ownership housing in seven Massachusetts communities. Of that amount, nearly $4.0 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.”

House Financial Services Committee Chairman Barney Frank (D-MA-Newton/New Bedford) added, “The Boston Federal Home Loan Bank has once again shown how valuable – indeed indispensable – public/private cooperation is if we are to meet our needs for affordable housing. The announcement today of projects that will receive funds under the bank’s Affordable Housing Program is a very welcome one. And it is a reminder that this country forgot for some time that providing decent rental housing for people with limited income is a far better response to the housing needs than the rash of irresponsible subprime homeownership lending which we saw earlier in this decade, and which has put us in the current crisis.”

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: Beverly
Member: Salem Five Cents Savings Bank
Sponsor: Beverly Housing Authority
Units: 5 rental
Subsidy: $215,083 grant and subsidy, $365,500 advance
Monserrat Affordable Rental Housing. Acquisition and rehabilitation of a property to create five energy-efficient rental units for low- and very low-income families. The property, adjacent to the Monserrat commuter rail station, was donated by the Massachusetts Bay Transit Authority. Residents will benefit from many services, including daycare, a GED program, and job training. Salem Five Cents Savings Bank provides the permanent financing through the AHP-subsidized advance, and other funding includes a grant from the City of Beverly, North Shore HOME funds, and state funds from the Commercial Area Transit Node Housing Program.

Location: Boston
Member: Wainwright Bank & Trust Company
Sponsor: The Commonwealth Land Trust, Inc.
Units: 115 rental
Subsidy: $544,113 grant and subsidy, $3.0 million advance
Bowdoin Lodging Houses. Rehabilitation and refinance of a previously funded AHP initiative in Beacon Hill that provides supportive housing for very low-income residents. The initiative is designed to stabilize formerly homeless individuals with mental and physical disabilities. Residents benefit from an array of services including managed healthcare, job training, self-sufficiency training, and a residents council. AHP funds will make it possible to restructure existing debt, perform capital repairs, and improve energy efficiency. Wainwright Bank provides permanent financing through the AHP-subsidized advance, and other funding comes from the City of Boston, Massachusetts Department of Housing and Community Development, and Historic Tax Credits.

Location: Boston
Member: Wainwright Bank & Trust Company
Sponsor: Hearth, Inc.
Units: 66 rental
Subsidy: $573,258 grant and subsidy, $650,000 advance
Hearth at Olmsted Green. Acquisition and construction of a property to provide 66 one-bedroom units for very low-income elderly. Of the 66 units, 20 units will be set aside for homeless residents. The building, located within close proximity to a community center and social service agencies, will include a community room, library, and a computer lab. Registered nurses will provide managed healthcare for the residents. Wainwright Bank and Trust Company provides the permanent financing through the AHP-subsidized advance, and additional funding comes from Low Income Housing Tax Credits, the Department of Housing and Community Development, the Department of Housing and Urban Development, and the Massachusetts Affordable Housing Trust.

Location: Dorchester
Member: Boston Private Bank & Trust Company
Sponsor: Dorchester Bay Economic Development Corporation
Units: 60 rental
Subsidy: $611,739 grant and subsidy, $1.0 million advance
Quincy Heights 1. Acquisition and renovation of scattered-site properties to create 60 energy-efficient units of affordable rental housing. Residents will benefit from GED classes, financial planning, afterschool programs, and a residents council. The sponsor has partnered with Quincy-Geneva Housing Corporation and the Boston Police Department to develop a community revitalization plan that focuses on public safety and crime reduction. Boston Private Bank and Trust Company will use the AHP-subsidized advance to purchase up to $1.0 million of taxable bond proceeds at MassHousing.

Location: Framingham
Member: Natick Federal Savings Bank
Sponsor: South Middlesex Opportunity Council, Incorporated
Units: 19 rental
Subsidy: $518,791, grant and subsidy, $516,559 advance
Larry’s Place. Refinance, rehabilitation, and conversion of a multistory downtown building to create 19 permanent, energy-efficient single-room-occupancy units for very low-income, homeless veterans. The sponsor will provide a range of services including employment training, job placement, and transportation. A live-in house manager will facilitate group food preparation, house meetings, and a residents council. In addition to the AHP direct subsidy, Natick Federal Savings Bank provides permanent financing through the AHP-subsidized advance. Additional funding comes from the Massachusetts Department of Housing and Community Development and Department of Housing and Urban Development funds.

Location: Greenfield
Member: Greenfield Savings Bank
Sponsor: Greenfield Housing Associates
Units: 54 rental
Subsidy: $424,920 grant and subsidy, $425,000 advance
The Winslow. Historic rehabilitation and expansion of a downtown rooming house to provide 55 subsidized, single-room-occupancy units. A community room with group kitchen and offices for tenant services will also be created. Residents will be offered GED, ESL, and self-sufficiency programs as well as a residents council. This mixed-use initiative also includes two retail stores at street level. In addition to the AHP direct subsidy, Greenfield Savings Bank provides permanent financing through the AHP-subsidized advance. Additional funding comes from Low Income Housing Tax Credits, Federal Historic Tax Credits, and the Massachusetts Department of Housing and Community Development.

Location: Lawrence
Member: Pentucket Five Cents Savings Bank
Sponsor: Bread and Roses Housing, Inc.
Units: 2 ownership
Subsidy: $54,500 grant
Bread and Roses Housing 9. Construction of two energy-efficient duplex-style units to be sold to very low-income households. The City of Lawrence donated the land, located in the Tower Hill neighborhood, and all families will receive pre- and post-purchase counseling, including anti-predatory lending, as well as job opportunities, financial literacy classes, and daycare services. Pentucket Five Cents Savings Bank provides 80 percent of the permanent financing, with the balance provided by Bread and Roses, the City of Lawrence, and the McCarthy Memorial Trust Fund.

Location: Lawrence
Member: River Bank
Sponsor: Lawrence CommunityWorks, Inc.
Units: 51 rental
Subsidy: $524,269 grant and subsidy, $350,000 advance
Union Crossing Project. Acquisition and rehabilitation of a century-old mill to create housing and commercial space, including a new daycare facility. Units will range from one- to four-bedroom, and the property is expected to become an extension of downtown Lawrence and the adjacent neighborhoods. Residents will be offered job placement, education, and the opportunity to participate in a residents council. In addition to the AHP direct subsidy, River Bank provides construction and permanent financing through the AHP-subsidized advance. The initiative will also receive funding from Low Income Housing Tax Credits, the Massachusetts Department Housing and Community Development, the Massachusetts Technology Collaborative, and the City of Lawrence.

Location: Watertown
Member: Watertown Savings Bank
Sponsor: Watertown Community Housing, Inc.
Units: 18 rental
Subsidy: $220,000 grant