By
John Eller
 |
View of
Burlington Waterfront Apartments in Burlington, Vermont. |
In the 15 years since the Federal Home Loan Bank of Boston’s
(the Bank) Affordable Housing Program (AHP) began providing grants
and subsidies to support affordable housing in the region, almost
50,000 New Englanders — 70 percent earning at or below 50 percent
of area median income — have received affordable housing funded
in part by the AHP. Through yearend 2005, 19,591 housing units have
been built or assisted through the AHP.
The Bank has awarded over $257 million in AHP grants and subsidized
advances to help its members finance 678 housing initiatives from
Perry, Maine, to Stamford, Connecticut. These funds have helped build
new housing units, upgrade and preserve existing affordable units,
create shelters and assisted living units, and rehabilitate and convert
old mills, schools, and other buildings into affordable housing.
Since the AHP is almost always used in concert with other private
and public funds, AHP dollars have helped leverage approximately
$2.25 billion for housing investments in New England communities.
Noting that the Federal Home Loan Banks (FHLBanks) set aside a significant
portion of their annual profits to support housing for those in need,
Rep. Barney Frank (D-MA-4), ranking minority member of the House
Financial Services Committee, recently described the AHP as “a
successful model of private-sector work.”
Nationally, over 1.3 million people are now living in AHP-assisted
homes and apartments. FHLBanks have provided over $2.54 billion in
AHP grants and subsidized advances, leveraging billions of dollars
in total housing investments around the country.
Over the years, the AHP has remained primarily a gap-filler within
the region’s complex quilt of funding resources. It is recognized
as a steady resource for members and sponsors through its two annual
funding rounds, clear application process, transparent program, and
well-understood requirements.
Member Participation
The success of the AHP can be measured by the widespread participation
of the Bank’s member financial institutions, housing sponsors
in the six-state region, and the many local, state, regional, and
national funding partners who help finance needed affordable housing.
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From the
left, South Middlesex Opportunity Council staff members Mary
Shanahan and Darlene Assencoa Mazurek visit with a resident
at the AHP-funded 90 Irving Street initiative in Framingham,
Massachusetts. The Irving Street site provides housing for
people recovering from homelessness and substance abuse.
|
Over 150 member financial institutions have participated in the
AHP since 1990. Dozens have created impressive affordable-housing
portfolios and outstanding reputations in their communities with
help from the program. Many have developed long-lasting partnerships
with housing producers and have incorporated Bank housing programs
into their day-to-day business activities. Many members and sponsors
credit the AHP with being the critical funding piece that enables
them to complete a development’s funding and
start construction.
Developers, meanwhile, have strengthened their capacity to create
much-needed affordable housing in their communities through participation
in the AHP.
Over the years, the Bank’s members have developed a corps of
experienced community lenders. These bankers are involved in organizations
such as town boards and PTOs and participate in road races to support
cancer research; they are concerned about their communities. Each
is among the best of their profession and truly represents the spirit
of the AHP. Their business lines facilitate their core mission of
providing the right resources at the right time.
An Educational Program
With help from the AHP, member financial institutions have learned
how to mainstream the business of developing affordable housing in
their communities. It’s an approach that has worked well in
New England. To be effective educators in the community, we at the
Bank have learned that it’s essential to be careful listeners
and creative responders. By listening and adapting, the Bank empowers
itself as well as
its members and sponsors to work together to produce results.
The late Michael Richardson, one of Vermont’s staunch affordable-housing
leaders and an early chair of the Bank’s Advisory Council,
liked to remind us that the banking industry listens when the Bank
places its imprimatur on affordable housing. Deeply missed by the
housing community, Mr. Richardson taught us the importance of placing
the Bank’s imprimatur carefully and thoughtfully and backing
it up with skilled resources.
The AHP is a mature program guided by an experienced staff networked
with members and sponsors across the region and colleagues across
the nation. The Bank’s Housing and Community Investment Department
has 74 years of collective experience administering the AHP program.
At 15, the Bank’s AHP is well grounded in New England and well
positioned for whatever changes the future will bring.
The hard realities of the region’s economies, including the
recent run-up of land and housing values and the elimination of many
residents from affordable housing, are expected to continue. The
rise in values has been so fast over such a short period that it
will take many years to create the amount of affordable housing needed
for New England’s working people, elderly, developmentally
disabled, and others.
How the recent trend of declining population in Massachusetts will
impact the need for more affordable housing is unknown. What is known
is that many parts of New England are growing and face challenging
issues. At present, there is little on the horizon to suggest that
the need for affordable housing will decline significantly in the
next few years.
As the Bank turns its attention to the next 15 years
of the AHP, it will continue to focus its energy and expertise on
providing more affordable housing for the region’s diverse
communities. T
John Eller recently retired as director of the Bank's Housing and
Community Investment Department. |
