NEW YORK, NY - José R. González, president and CEO of the Federal Home Loan Bank of New York, announced that the Bank has awarded $22.1 million in subsidies to fund 28 affordable housing initiatives throughout New Jersey, New York, Connecticut, Maryland, Ohio and Pennsylvania. These awards are funded through the Bank's Affordable Housing Program ("AHP"), and will result in the creation or rehabilitation of 2,387 affordable housing units, including more than 1,400 units dedicated to very low-income housing and more than 2,300 units of affordable rental housing. The awards will not only help provide housing, but also drive community development: it is anticipated that more than $540 million in development costs will be generated from the development of these initiatives.
"For the past 25 years, the Federal Home Loan Bank of New York and our members have used Affordable Housing Program grants to support affordable housing initiatives across our region," said Mr. González. "In that time, we have been honored to partner with many outstanding housing organizations to help provide quality housing for those who need it most. Through the hard work of those organizations, and with the continued support of Congress, the Affordable Housing Program remains one of the most successful housing programs in the nation and a source of pride for our cooperative."
The $22.1 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 12 Federal Home Loan Banks have distributed 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 1,376 projects with more than $450 million in grants, helping to create or preserve nearly 60,000 units of affordable housing and generating an estimated $8.4 billion in total development costs.