Rhode Island awarded $3.8 million for affordable housing to create 123 rental and ownership units

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 Burrillville, Providence, and Tiverton. 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 am pleased that the Federal Home Loan Bank continues to invest in providing affordable housing in Rhode Island and nationwide,” said U.S. Senator Jack Reed, a senior member of the Banking Committee, which oversees federal housing policy. “This funding will help provide quality, affordable housing for working families and seniors in Providence, Burrillville, and Tiverton.”

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: Burrillville
Member: Bank of America Rhode Island, N.A.
Sponsor: NeighborWorks Blackstone River Valley
Number and Type of Units: 47 rental units
Amount and Type of Subsidy: $400,000 grant
Stillwater Mill Development. Creation of 47 family apartments in the Clocktower Mill Building, built at the turn of the 19th century and listed in the National Register of Historic Places. A mixture of one-, two-, and three-bedroom flats will be affordable to families earning from 40 to 80 percent of area median income. Residents will benefit from a variety of empowerment services, and the project utilizes smart-growth principles and an energy-efficient design. Bank of America Rhode Island, N.A. will provide a $11.3 million bridge loan and purchase the historic tax credits. Other funding sources include Rhode Island Housing, Low Income Housing Tax Credits, Historic Tax Credits, HUD Brownfields, and Hope VI Main Streets.

Location: Providence
Member: Bank Rhode Island
Sponsor: Stop Wasting Abandoned Property (SWAP)
Number and Type of Units: 26 ownership units
Amount and Type of Subsidy: $400,000 grant
Maplewoods in the City. Construction of a 40-unit, mixed-income condominium development, of which 26 will be affordable for first-time, low- to moderate-income buyers. Residents will participate in homeownership counseling, financial planning, the condominium association, and the sponsor’s board of directors. The development converts a foundation that had been abandoned in 2004 into much needed affordable housing. The building will conform to smart-growth principles and use energy-efficient technologies. Bank Rhode Island will provide construction as well as permanent financing. Other funding sources include HOME and Building Homes Rhode Island.

Location: Tiverton
Member: BankNewport
Sponsor: Church Community Housing Corporation
Number and Type of Units: 50 rental units
Amount and Type of Subsidy: $799,233 grant and subsidy, $2.25 million advance
Sandywoods Farm. Acquisition and new construction of an artist and agricultural community initiative on 175 acres. Thirty units will be set-aside for families earning less than 50 percent of area median income, 10 units for families between 51 to 60 percent, and 10 units for families between 61 to 80 percent. This development is part of a larger initiative that includes market-rate homes, agricultural production and preservation, and economic development. A rural village center will offer a farmers’ market, café, studio, gallery, and performance space. Energy-efficient materials will be incorporated into the development, including wind and solar power. BankNewport is providing permanent financing through the AHP-subsidized advance. Major funders include the Rhode Island State Housing Commission and Rhode Island Housing.