The Federal Home Loan Bank of New York announced today the award of a $1.16 million grant to NJ HAND, Inc. to help finance the Lakewood Commons Phase II project, which will build 59 units of affordable housing for low- and very low-income families. Amboy Bank, a member of the Federal Home Loan Bank of New York, submitted the application for the funding.
"After a comprehensive review, the Federal Home Loan Bank of New York selected Lakewood Commons for this competitive grant designed to increase the availability of affordable housing opportunities in Lakewood," said Rep. Chris Smith (NJ-4), who toured the housing site earlier this year. "This grant supports Phase II of the development, offering more families the better opportunity of owning their own home -- a benefit for Lakewood and a plus for the regional economy."
"Housing is a cornerstone of our economy, a key driver of economic development and job growth, and the foundation of strong families and vibrant communities," said Alfred DelliBovi, president and CEO of the Federal Home Loan Bank of New York. "The Federal Home Loan Bank of New York is proud to support affordable housing initiatives across our region and beyond. We thank all of our partners -- the local lenders, the housing groups and our elected officials -- for their continued support of the Affordable Housing Program. When we strive to ensure that all have access to affordable housing, we strengthen the fabric of our society."
The $1,160,000 grant will help fund the new construction of part of a multi-phased homeownership development, which will provide a total of 59 units of housing. These homes are designed with each home containing either a deck, a porch or a side yard off of the kitchen and its own storage area. A community center will also be available to the residents who purchase their homes under the Phase II component of the project. In addition, a playground and a recreation area are also available to all residents of Lakewood Commons. The Affordable Housing Program subsidy will be used for mortgage buy down assistance. Additional financing will be provided by a construction loan from Amboy Bank and a contribution of equity from NJ HAND.
The grant is part of $26.4 million in Affordable Housing Program subsidies that the Federal Home Loan Bank of New York will award as its 2012 AHP grant round. In total, these grants will help to finance 37 affordable housing initiatives which will create or preserve 2,679 units of affordable housing, including more than 2,000 units of very low-income housing, in New Jersey, New York and Pennsylvania. The Federal Home Loan Banks have distributed more than $4.6 billion in AHP funds since 1990. At the Federal Home Loan Bank of New York, the AHP has supported 1,355 projects with nearly $450 million in grants, helping to create or preserve nearly 58,000 units of affordable housing and generating an estimated $8.1 billion in total development costs. For more information on today's grants, please visit www.fhlbny.com/news/pressrelease.htm.
The Federal Home Loan Bank System's Affordable Housing Program, created in 1989, provides member community lenders with direct subsidies, which are passed on to qualified households through a sponsoring local non-profit organization. AHP financing is combined with other funding sources to create housing for moderate-, low- and very-low-income families. Program awardees receive this funding through semi-annual competitive rounds. Each competing project must be sponsored by a financial organization that is a member of the Federal Home Loan Bank in partnership with a community-based sponsoring organization.http://www.fhlbny.com/community/housing-programs/ahp/grant-recipients/october-2012/lakewood.aspx