Located in Connecticut's lower Fairfield County, Stamford is one of the wealthiest and most expensive areas in the United States. Just 45 minutes north of Manhattan, the city is home to some of the country's largest companies, including Pitney Bowes Corporation, Swiss Banc, Xerox Corporation, and Clairol.

While the past several years brought prosperity to many, they also thrust more people than ever into the hunt for apartments. As the housing supply dwindled, rents shot out of reach of Stamford's poorest residents. And though the once red-hot economy supplied jobs to the formerly unemployed, the positions were often low-paying, temporary, seasonal, or part-time. Even in the best of times, low-income residents could not afford a market-rate apartment in Stamford, says Ellen Isidro, former executive director of Shelter for the Homeless.

Stamford's predicament is critical, but hardly unique. Connecticut is rife with such stories, which is why the state has started to overhaul many historic buildings into several hundred supportive- housing units for the chronically homeless. In 2000, Shelter for the Homeless counted more than 400 people who were living on the streets, in shelters, or in transitional housing — a figure that doesn't take into account people staying with friends or families.

A Member Making a Difference
Ed Dayton, executive vice president of member First County Bank, can testify to the number of people who are homeless in the Stamford area. "I've visited shelters, and they are always full," he says.

Mr. Dayton hopes to see the situation improve, as a result of the $572,150 in Affordable Housing Program (AHP) funding his institution has received from the Federal Home Loan Bank of Boston. The member partnered with three community-based organizations to successfully apply for the funding on behalf of initiatives that have helped 40 homeless people to move out of shelters and into transitional or permanent housing.

Strengthening the South Side
First County Bank helped two initiatives on Stamford's south side win funding in the second round of the 1996 AHP.

Shelter for the Homeless, Inc., used a $300,000 rate-subsidized AHP advance to buy a three-family home at 17 Berkley Street and convert it into supportive housing. Today, 12 formerly homeless men, most recovering from drug or alcohol addiction, live there as they work to secure jobs and permanent homes.

Meanwhile, only several blocks away, St. Luke's LifeWorks used a $147,150 AHP grant to rehabilitate two adjoining buildings to create supportive housing. The resulting Atlantic Park development provides 27 studio apartments — 18 of them reserved for homeless people — for very low-income residents with AIDS, mental illnesses, substance addictions, or dual diagnoses.

"Stabilizing communities is a priority for the nation and for Connecticut," says Representative Christopher Shays. "Thanks to the shared efforts of the Federal Home Loan Bank of Boston, First County Bank, and Shelter for the Homeless, this housing will provide a safe, supportive environment for working people in transition."

The single, furnished rooms have been fully occupied since Atlantic Park opened its doors three years ago. Rents are charged as a percentage of income, with residents paying from $71 to $500 per month. Elsewhere in Stamford, a comparable efficiency unit would rent for about $900.

"Atlantic Park is both a major asset to the city and a great credit to a bank the size of First County," says Rev. Richard Schuster, executive director at St. Luke's. In fact, Atlantic Park is so highly regarded that Connecticut is using it as a model for other redevelopment projects around the state, he notes.

Promoting Independence
In 1997, First County applied for a $125,000 AHP advance to finance the hard construction costs of Metcalf House, a residence that provides semi-permanent housing for homeless men and women recovering from chemical dependency.

Nonprofit Metcalf House, Inc., converted a former parish house on Forest Street to create the 10 single-room-occupancy units. While supportive housing is often tucked away into residential neighborhoods, Metcalf House is located in the heart of Stamford's thriving commercial sector, surrounded by high-priced apartments.

Metcalf residents can choose from a variety of support systems, including counseling and educational programs.

"Our tenants have chosen to live in a success-oriented environment," says Don Currie, president of Metcalf. "By providing a place where people can choose their own direction and pace, the community will see a return on the investment it has made in human services."

As will First County Bank, notes Theo Noell, a community investment manager at the Federal Home Loan Bank of Boston.

"First County has helped to expand and improve permanent housing for homeless people," says Mr. Noell. "In each case, the member recognized both a business and community opportunity in making loans subsidized through the AHP. That is the essence of a community bank."

This article was written for the Bank's Tools for Housing and Community Economic Development newletter (issue 17, Winter 2002).