NEW YORK, NY - José R. González, President and CEO of the Federal Home Loan Bank of New York, announced that the Bank has awarded $32.6 million in subsidies to fund 39 affordable housing initiatives throughout New Jersey, New York, Florida, Maryland, Ohio, Pennsylvania and Texas. These awards are funded through the Bank's Affordable Housing Program ("AHP"), and will result in the creation or rehabilitation of 3,128 affordable housing units, including more than 2,100 units dedicated to very low-income housing and more than 3,000 units of affordable rental housing. The awards will not only help provide housing, but also drive community development: it is anticipated that more than $652 million will be leveraged in housing investment from the development of these initiatives.
"Our membership is broad and diverse, spanning institutions with different asset sizes, different business models and different areas of focus. But all are bound by a shared commitment to the communities they serve," said Mr. González. "Our Affordable Housing Program provides us with an opportunity to partner with our members to help support these communities. The AHP is funded through our earnings – earnings generated by our members' participation in our cooperative throughout the year. The AHP not only reflects our mission; it also drives our cooperative forward."
The $32.6 million announced today are funds drawn from the Bank's earnings. As mandated by Congress, the Bank forgoes 10 percent of its earnings each year to support these neighborhood housing and economic development initiatives.
The Federal Home Loan Bank of New York's AHP provides member-lenders with direct subsidies which are passed on to income-qualified households through sponsoring local nonprofit organizations. AHP financing is combined with other funding sources to create housing for moderate, low- and very low-income families. Program awardees receive this funding through a competitive application process. Each competing project must be sponsored by a financial organization that is a member of the Bank in partnership with a community-based sponsoring organization.
The AHP was created by Congress in 1989, and the 11 Federal Home Loan Banks have awarded more than $5.1 billion in AHP funds since the first awards were granted in 1990. At the Federal Home Loan Bank of New York, the AHP has supported 1,485 projects with more than $545 million in grants, helping to create or preserve more than 67,000 units of affordable housing and generating an estimated $10 billion in total development costs.