José R. González, president and CEO of the Federal Home Loan Bank of New York, announced that the FHLBNY has awarded $36.9 million in subsidies to fund 46 affordable housing initiatives throughout New Jersey, New York, Puerto Rico, Connecticut and Washington, D.C. These awards are funded through the FHLBNY's Affordable Housing Program ("AHP"), and will result in the creation, rehabilitation or preservation of 3,140 units, including 2,344 units dedicated to very low-income housing. The awards will not only help provide housing, but also drive community development: it is anticipated that nearly $1.2 billion in housing investment will result from the development of these initiatives.
"The pandemic has shown just how prevalent housing instability is, both in our region and across the country," said Mr. González. "The Affordable Housing Program has always served as a way for the FHLBNY and our members to join with our housing partners to create affordable housing opportunities that create stability for households and families. I commend our Community Investment staff, our members and our housing partners for overcoming a challenging operating environment, completing the 2020 AHP Round and ensuring that this vital grant funding can go to supporting so many worthy initiatives. At the FHLBNY, we know the importance of creating and preserving affordable housing opportunities, and the value of having a safe and stable home. It is the foundation from which we grow as individuals, families and communities. And in these communities, it is the local lender that drives these housing opportunities. We are grateful to our members for their continued use of our housing programs, working with us and our housing partners to help create stability for so many."
The $36.9 million in grants represent a portion of the AHP funds that are drawn from the FHLBNY's earnings. As mandated by Congress, the FHLBNY forgoes 10 percent of its earnings each year to support these neighborhood housing and economic development initiatives. The AHP is designed to address local housing needs. For more information on the 2020 AHP grants, please visit www.fhlbny.com/AHPOfferings.
The Federal Home Loan Bank of New York's AHP provides members with direct subsidies which are passed on to income-qualified households through sponsoring local community-based organizations. AHP financing is combined with other funding sources to create housing for moderate-, low- and very low-income households. Program awardees receive this funding through a competitive application process. Each competing project must be sponsored by a financial organization that is a member of the FHLBNY in partnership with a community-based sponsoring organization.
The AHP was created by Congress in 1989, and the 11 Federal Home Loan Banks have awarded more than $6.6 billion in AHP funds between the first awards in 1990 and the 2019 round. At the Federal Home Loan Bank of New York, the AHP has supported 1,928 projects with more than $820 million in grants, helping to create or preserve nearly 95,000 units of affordable housing and generating an estimated $15 billion in total development costs.
The following New Jersey communities will benefit from the announced funds: Camden, Cherry Hill, Closter, Cranford, Denville, Englewood, Glen Rock, Hillsborough Township, Ho-Ho-Kus, Lakewood, Little Ferry, Mahwah, Newark, Upper Saddle River, Wayne and Wanaque.
The following New York communities will benefit from the announced funds: Albany, the Bronx, Brooklyn, Buffalo, Dunkirk, Glens Falls, Kingston, LaGrange, Malone, Manhattan, Orangetown, Perry, Plattsburgh, Rochester, Schenectady, Williamsville and Yonkers.
Grants were also awarded for San Juan, Puerto Rico; Torrington, Connecticut; and Washington, D.C.
Federal Home Loan Bank of New York
The Federal Home Loan Bank of New York is a Congressionally chartered, wholesale Bank. It is part of the Federal Home Loan Bank System, a national wholesale banking network of 11 regional, stockholder-owned banks. As of September 30, 2020, the FHLBNY serves 321 financial institutions in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands. The Federal Home Loan Banks support the efforts of local members to help provide financing for America's homebuyers.
