The Federal Home Loan Bank of New York announced today the award of a $2 million grant to Liberty Affordable Housing, Inc. to help finance the Mariner Towers project, which will preserve 290 units of housing for very low-income families in Buffalo; and a $567,000 grant to Conifer Realty, LLC to help fund the Springbrook Apartments Preservation project, which will renovate a 63-unit apartment complex in Springville. Home Loan Bank members NBT Bank, N.A. and First Niagara Bank submitted the applications for the funding.
"Maintaining affordable housing options for families and seniors is critical," said Congressman Brian Higgins (NY-27). "This grant funding from the Federal Home Loan Bank of New York, totaling over $2.5 million, will help renovate and preserve 350 apartment units in Western New York."
"At NBT Bank, we are pleased to continue our partnership with the Federal Home Loan Bank to finance projects that positively impact residents living in our local communities," NBT Bank Senior Commercial Banking Relationship Manager Rex Cary said. "Projects like Mariner Towers not only fulfill a need for residents to find affordable housing, they also help foster economic growth by stabilizing our neighborhoods and communities. As a community bank, this is just one of many ways that we invest in the communities we serve."
"The need for safe and affordable housing is critical in these challenging times," said Buford Sears, Western New York Market Executive for First Niagara Bank. "First Niagara is proud to support our community in this impactful way."
"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 Mariner Tower project involves the purchase, rehabilitation and preservation of 290 units of very low-income family housing. The project has a 290-unit Section 8 Contract that expires in 2014, and HUD has agreed to extend the Section 8 Contract for 15 years at the time of the closing. Financing will be provided by New York State Homes and Community Renewal and City of Buffalo HOME funds, and the Homes for Working Families Program. The Affordable Housing Program subsidy will be used towards rehabilitation costs. NBT Bank submitted the application for this project.
The Springbrook Apartments Preservation project consists of the renovation of a 63-unit apartment complex which provides housing for low- and very low-income families and seniors. The renovations will ensure that the project's major building systems will preserve the building as affordable housing. The complex consists of three buildings containing 50 one-bedroom units, 5 two-bedroom units and 8 three-bedroom units. Fifty units are set aside for seniors and the remaining units are available for families. The Affordable Housing Program subsidy will be used to partially finance renovation costs. The balance of financing is provided by tax exempt bond proceeds, interim income, federal tax credit equity, the New York State Housing Finance Agency, the New York State Housing Trust Fund, and a deferred developer fee. First Niagara Bank submitted the application for this project.
The grants are 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.