BOSTON – December 9, 2008 – (RealEstateRama) – The Federal Home Loan Bank of Boston (the Bank) awarded nearly $1.6 million as a grant, loan, and rate subsidy to fund 10 units of affordable rental housing in Providence. Of that amount, nearly $700,000 was given as a grant and 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.”
“This is a great partnership and a smart investment in revitalizing the West End,” said U.S. Senator Jack Reed (D-RI), a senior member of the Senate Banking Committee, which oversees federal housing policy. “This project will provide quality, affordable housing and new commercial space. It is important that we continue to strengthen our neighborhoods and create housing opportunities for more working Rhode Islanders.”
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.Information on the awards follows, and is also available at www.fhlbboston.com/ahp. For more information, see our backgrounder.
The Awards
Location: Providence
Member: Rockland Trust Company
Sponsor: West Elmwood Housing Development Corporation
Units: 10 rental
Subsidy: $694,110 grant and subsidy, $857,642 advance
Westfield Commons. Historic rehabilitation and renovation of an industrial building in the West End to create mixed-income rental housing and commercial space. Of the 13 residential units, 10 will be reserved for very low-income families and three will be market-rate. Residents will benefit from an after-school program, employment training, and the opportunity to participate on a residents council. Rockland Trust Company provides permanent financing through the AHP-subsidized advance, and other funding comes from Building Home Rhode Island, Historic Tax Credits, and New Market Tax Credits.
