BOSTON, MA – November 29, 2007 – The Federal Home Loan Bank of Boston (the Bank) awarded $3.2 million in grants, loans, and rate subsidies to fund 252 units of affordable housing in Keene, Laconia, Meredith, Portsmouth, and Salem. In all, 25 New England initiatives received more than $16 million in grants, loans, and rate subsidies as part of the Bank’s Affordable Housing Program (AHP) to create or preserve 674 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. “Regardless of the economy, AHP funds always provide a welcome boost for affordable housing initiatives,” said Michael A. Jessee, the Bank’s president and chief executive officer. “Safe, decent, affordable housing is essential for everyone, and the Bank is proud to contribute to the well-being of the region.”
“I applaud the Federal Home Loan Bank for their commitment to creating affordable housing in New Hampshire,” Congressman Paul Hodes said. “This funding serves as a great example of a successful public and private sector partnership, and will improve communities and better the lives of seniors in the Granite State.”
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 18, 2008.
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.
Information on the awards follows, and is also available at www.fhlbboston.com/ahp. For more information, see our backgrounder.
The Awards
Location: Keene
Member: Chittenden Trust Company
Sponsor: Southwestern Community Services, Inc.
Number and Type of Units: 24 rental units
Amount and Type of Subsidy: $200,000 grant
Railroad Square Senior Housing. Construction of a three-story building to create 24 units of service-enriched, affordable senior housing located on the former B&M railroad property. This initiative is part of the city’s largest downtown development in decades. Fifteen units will be rented to households with incomes at 50 percent of the area median income and nine units will target households between 51 and 60 percent of the area median income. The sponsor executed a memorandum of understanding with Monadnock Collaborative to provide economic empowerment and supportive services. Chittenden Trust Company will supply construction financing, and other funding sources include Low Income Housing Tax Credits, sponsor equity, New Hampshire Housing Finance Agency, and City of Keene funds.
Location: Laconia
Member: Laconia Savings Bank
Sponsor: Laconia Area Community Land Trust, Inc.
Number and Type of Units: 16 rental units
Amount and Type of Subsidy: $799,269 grant and subsidy, $1.2 million advance
The McIntyre Building. Acquisition and rehabilitation of a three-story, 21-unit apartment complex built circa 1914. The top two floors will be occupied by working and recently retired adults, and the ground floor will house nine retail stores. Thirteen units will be set aside for households earning below 50 percent of area median income, three for families earning at or below 80 percent of area median income, and five units will be market rate. All units will be energy-efficient one-bedroom apartments. Residents will benefit from several economic empowerment services and will form a residents’ council. Laconia Savings Bank will provide construction and permanent financing through the AHP-subsidized advance, and the initiative received a Community Development Block Grant.
Location: Laconia
Member: Laconia Savings Bank
Sponsor: Laconia Area Community Land Trust, Inc.
Number and Type of Units: 8 rental units
Amount and Type of Subsidy: $537,762 grant and subsidy, $403,000 advance
Laconia Downtown Initiative-Cook Building. Acquisition and rehabilitation of a mixed-use building constructed in 1898. The initiative includes seven units for very low-income households, one unit for a household earning below 80 percent of area media income, and three market-rate units. The rehabilitation will incorporate many green features. Laconia Savings Bank is providing the commercial mortgage and permanent debt through the AHP-subsidized advance. Additional funding will be provided by a Community Development Block Grant.
Location: Meredith
Member: Meredith Village Savings Bank
Sponsor: Laconia Area Community Land Trust, Inc.
Number and Type of Units: 32 rental units
Amount and Type of Subsidy: $484,378 grant and subsidy, $256,000 advance
Meredith Affordable Housing Development. Construction of 32 townhouse-style units to create workforce housing. Twenty units will be targeted to very low-income households and 12 units to households earning less than 60 percent of the area median income. The sponsor is combining this site with an adjacent parcel to develop this project along with another initiative, Crestview Manufactured Housing Park, that will be located on the property. The Meredith Affordable Housing Development will be a LEED-certified project with many green features. Meredith Village Savings Bank will provide the construction financing and permanent financing using an AHP-subsidized advance. Other major funding sources include Low Income Housing Tax Credits and USDA Rural Development.
Location: Meredith
Member: Meredith Village Savings Bank
Sponsor: Laconia Area Community Land Trust, Inc.
Number and Type of Units: 13 rental units
Amount and Type of Subsidy: $652,901 grant and subsidy, $659,705 advance
Crestview Manufactured Housing Park. Acquisition and reconfiguration of an existing 13-unit manufactured-home park to preserve needed workforce housing. Eight of these homes will be reserved for very low-income households and five will be for low-income households. The sponsor is combining this site with an adjacent parcel to develop this initiative along with another project, Meredith Affordable Housing. This requires relocating six pads and purchasing six new Energy Star-compliant manufactured homes. Existing residents will have the option to purchase these units below cost. The sponsor will provide residents with financial planning and budget counseling. Meredith Village Savings Bank is providing the construction financing and the permanent financing through the AHP-subsidized advance.
Location: Portsmouth
Member: TD Banknorth, N.A.
Sponsor: Portsmouth Housing Authority
Number and Type of Units: 10 rental units
Amount and Type of Subsidy: $436,763 grant and subsidy, $175,000 advance
Lafayette School Senior Apartments. Reuse of a historic elementary school to create 10 energy-efficient apartments for independent elderly. Nine one-bedroom units and one two-bedroom apartment will be affordable for seven very low-income families and three households earning less than 60 percent of the area median income. The city will donate the property through a long-term ground lease. A range of supportive and economic empowerment services will be available through partnerships with the Senior Citizens Center and other providers. TD Banknorth, N.A. is providing the construction financing and permanent financing through the AHP-subsidized advance, and Community Development Block Grant equity from the City of Portsmouth and Low Income Housing Tax Credit equity will provide the balance of the funding.
Location: Salem
Member: Salem Co-Operative Bank
Sponsor: Salem Housing Authority
Number and Type of Units: 12 rental units
Amount and Type of Subsidy: $508,684 grant and subsidy, $500,000 advance
Braemoor Highlands Senior Apartments. Construction of 12 one-bedroom apartments for seniors on donated land. The development is planned as a two-story building on a wooded lot with covered parking. Eight units will be affordable for very low-income households and four units will be for households earning at or below 60 percent of the area median income. The project has the support of town officials and the community at large. The development will incorporate energy-efficient building technologies. Salem Co-Operative Bank is providing the construction financing and the permanent financing with the AHP-subsidized advance. Low Income Housing Tax Credit equity will provide the balance of the capital funding.
