BOSTON, June 30 /PRNewswire/ -- The Federal Home Loan Bank of Boston (the Bank) awarded more than $2.2 million to fund 68 units of affordable rental housing in Brunswick and Kennebunk, Maine. Of this amount, nearly $1.1 million was in the form of a grant or advance subsidy. In all, 16 initiatives in New England received more than $13.2 million in grants, loans, and rate subsidies as part of the Bank's Affordable Housing Program (AHP) to create or preserve 377 rental and ownership units for very low-, low-, and moderate-income individuals and families. Each year, the Bank sets aside 10 percent of its net profits to provide grants and subsidized, below market-rate loans through the AHP. "Once again, our members and their community partners have come together to address the severe affordable-housing challenge facing our cities, towns, and neighborhoods," said Michael A. Jessee, the Bank's president and chief executive officer. "The AHP encourages our member financial institutions, community organizations, and local housing agencies to create housing opportunities for families and individuals throughout New England." Congressman Tom Allen added, "Maine has a growing affordable housing crisis, both in our urban communities and our rural towns. Affordable rental units, which are the only option for some families, are especially at a premium. These 68 new units, which Federal Home Loan Bank of Boston support is making possible, will help to ease the crunch in Brunswick and Kennebunk. I am an avid supporter of this program and of the FHLB's efforts to encourage development of additional housing that low- and moderate-income families can fit into their budgets." AHP funds are used to create or preserve affordable housing and help pay construction, acquisition, or rehabilitation costs. Member financial institutions work with local developers to apply for AHP funding, awarded twice a year through a competitive scoring process. The application deadline for the second round of this year's AHP awards is September 29, 2006. The Federal Home Loan Bank of Boston (http://www.fhlbboston.com) is a cooperatively owned wholesale bank for housing finance in the six New England states. Its mission is to support the residential-mortgage and community-development lending activities of its members, which include over 460 financial institutions across New England. To accomplish its mission, the Bank utilizes private-sector capital to provide members and other qualified customers with reliable access to low-cost wholesale funds, liquidity, a competitive outlet for the sale of loans, special lending programs, technical assistance, and other products and services. Information on the award follows, and is also available at http://www.fhlbboston.com/ahp. Location: Brunswick, Maine Member: Bath Savings Institution Sponsor: Brunswick Housing Authority Number and Type of Units: 40 rental units Amount and Type of Subsidy: $492,529 grant and subsidy, $495,000 advance Creekside Village. Construction of 36 one-bedroom and four two-bedroom apartments for independent seniors aged 55 and over. Twenty-four units will be reserved for very low-income households and 16 will be for low-income households. In addition to light congregate-care services, the Brunswick Housing Authority will provide transportation assistance, GED education, job-placement, and a residents' council. The limited partnership will give the Greater Brunswick Housing Corporation an option to purchase the property at the end of the tax-credit period. Smart-growth elements include land reuse, access to transportation, and a high-performance, energy-efficient design. Financing includes Low Income Housing Tax Credits, Maine HOME funds, and sponsor equity. Bath Savings Institution is providing construction financing and the AHP-subsidized advance will be used for the permanent debt. Location: Kennebunk, Maine Member: TD Banknorth, N.A. Sponsor: Avesta Housing Number and Type of Units: 28 rental units Amount and Type of Subsidy: $596,498 grant and subsidy, $650,000 advance Cousens School Apartments. Acquisition and reuse of an historic vacant elementary school to create 12 one-bedroom and 16 two-bedroom units. This rural initiative will provide housing for 17 very low- and 11 low-income households and meet the green-design standards of the Maine State Housing Authority. Sixteen units will have project-based rental assistance from the USDA Rural Development. A residents' council, day care, financial education, and managed health-care services will be provided in partnership with York County Community Action Corporation. The limited partnership will give Commons Housing Corporation an option to purchase the property at the end of the tax-credit period. This initiative promotes smart growth by reusing a historic building and providing access to public transit and high-performance housing. Financing includes Low Income Housing Tax Credit equity, Maine HOME funds, a USDA Rural Development loan, and sponsor equity. TD Banknorth, N.A. will provide construction financing and use the AHP-subsidized advance for the permanent debt.
Mark S. Zelermyer
SOURCE The Federal Home Loan Bank of Boston