BOSTON – December 9, 2008 – (RealEstateRama) – The Federal Home Loan Bank of Boston (the Bank) awarded nearly $1.5 million as grants, loans, and subsidies to fund 63 units of affordable rental housing in Nashua and Rindge. Of that amount, over $935,000 was given as a grant or subsidy. In all, 24 initiatives in eight states received more than $22.8 million as part of the Bank’s Affordable Housing Program (AHP) to create or preserve 816 rental and ownership units for very low-, low, and moderate-income individuals and families.
Each year, the Bank commits 10 percent of its net profits to provide grants and subsidized, below market-rate loans through the AHP. “The awards will help stimulate economic development during these tough times,” said Michael A. Jessee, the Bank’s president and chief executive officer. “I commend our member banks for their efforts to increase the stock of decent affordable housing in our communities.”
Congressman Paul Hodes added, “I applaud the Federal Home Loan Bank of Boston’s AHP award to Harbor Homes and Southwestern Community Services. Both organizations provide much needed housing for our communities’ veterans and seniors. The Affordable Housing Program plays a crucial role in ensuring the availability of housing for working families in New Hampshire.”
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 first round of next year’s AHP awards is April 17, 2009.
The mission of the Federal Home Loan Bank of Boston is to support the residential-mortgage and community-development lending activities of its members, which include over 450 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.
Member: Merrimack County Savings Bank
Sponsor: Harbor Homes, Incorporated
Units: 39 rental
Subsidy: $543,714 grant and subsidy, $516,000 advance
Dalianis House. Acquisition and rehabilitation of a building to provide 39 units of transitional housing for very low-income, homeless residents, including veterans. The property is located near the sponsor’s administrative offices where a variety of supportive services will be offered, including employment, GED training, and transportation services. Merrimack County Savings Bank provides the long-term permanent financing through the AHP-subsidized advance. The U.S. Department of Veterans Affairs and New Hampshire Housing Finance Authority will also provide funding.
Member: RBS Citizens, National Association
Sponsor: Southwestern Community Services, Inc. (SCS)
Units: 24 rental
Subsidy: $395,000 grant
Rindge Senior Housing. Construction of 24 energy-efficient rental units of senior housing on land donated by the Town of Rindge. The downtown development will serve very low- and low-income elderly residents who will benefit from agency and town services, including managed healthcare. Residents will also have the opportunity to serve on the sponsor’s board of directors as well as a residents council. RBS Citizens, N.A. provides construction financing, and the initiative will also receive Low Income Housing Tax Credits and Community Development Block Grant funds.