NEW YORK, NY - José R. González, President and CEO of the Federal Home Loan Bank of New York, announced that the Bank has awarded $27.1 million in subsidies to fund 35 affordable housing initiatives throughout New Jersey, New York, Connecticut, Maryland and Pennsylvania.
These awards are funded through the Bank's Affordable Housing Program ("AHP"), and will result in the creation or rehabilitation of 2,576 affordable housing units, including more than 1,900 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 $425 million will be leveraged in housing investment from the development of these initiatives.
"The Affordable Housing Program – which marks its 25th anniversary this year – is part of the fabric of our cooperative," said Mr. González. "The Affordable Housing Program is a reflection of our mission and our purpose, and since its creation, it has provided us with another way in which we join with our members to serve and support our local communities. Our members and our housing partners are making people's lives better one home at a time, and for the past 25 years, we have been proud to work alongside them through the Affordable Housing Program."
The $27.1 million announced 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 $4.8 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 1,450 projects with more than $515 million in grants, helping to create or preserve more than 65,000 units of affordable housing and generating an estimated $8.8 billion in total development costs.
Source: Federal Home Loan Bank of New York / #Affordable #Housing