Member financial institutions now can tap the Federal Home Loan Bank of Boston's Equity Builder Program to help low- to moderate-income households purchase homes.

To be funded using 15 percent of the Bank's annual Affordable Housing Program (AHP) subsidy, the new program will provide down-payment, closing-cost, and rehabilitation assistance to eligible home buyers. Members will also be able to use Equity Builder Program funds to pay the cost of home-buyer-counseling and to offer matched-savings programs.

Eligible households are those earning no more than 80 percent of the area median income for the neighborhood in which they are purchasing a property. To qualify for Equity Builder Program funding, members must certify that participating buyers have completed a homeownership-counseling program conducted by a nonprofit counseling agency.

All owner-occupied units, including condominiums and cooperatives, qualify as eligible ownership units. To qualify for Equity Builder Program funding, members must ensure that each unit purchased under the program is subject to a deed restriction, mortgage, or other legally enforceable retention agreement that maintains affordability for at least five years. Funds must be drawn down and used for eligible purposes within 24 months of application approval.

The Bank began accepting Equity Builder Program applications in early March, at which time the application became available through FHLB Direct, the Bank's online account-information and transaction service. Members are strongly encouraged to attend one of the Bank's AHP Training Sessions before applying. The application deadline is April 1.

The Bank's Housing and Community Investment Department and Advisory Council first began discussions about creating a home-buyer-assistance program in November of 2001. Their mission was to support the residential lending activities of the Bank's member institutions, while utilizing the expertise of their nonprofit housing partners to create homeownership opportunities for very low- to moderate-income households.

To access the new online application or for more information about the online application, please contact Ken Willis, senior community investment manager, at 617-292-9631 or ken.willis@fhlbboston.com, or Mary Ellen Jutras, assistant vice president, at 617-292-9607 or mjutras@fhlbboston.com.