September 25, 2019
Contact: Brian Finnegan – (212) 441-6877
Federal Home Loan Bank of New York
Awards $45.8 Million for 45 Affordable Housing Initiatives
New York, New York — José R. González, president and CEO of the Federal Home Loan Bank of New York, announced that the Bank has awarded $45.8 million in subsidies to fund 45 affordable housing initiatives throughout New Jersey, New York, Connecticut, Illinois, Maryland and Pennsylvania. These awards are funded through the Bank’s Affordable Housing Program (AHP), and will result in the creation or rehabilitation of 3,210 affordable housing units, including 2,381 units dedicated to very low-income housing. The awards will not only help provide housing, but also drive community development: it is anticipated that more than $890 million in housing investment will result from the development of these initiatives.
“Our 50th round of Affordable Housing Program grants is not only a milestone for the Federal Home Loan Bank of New York, but a testament to the continued commitment of our members to the communities we all serve,” said Mr. González. “For the past 30 years, our members have accessed the AHP to support initiatives that make tangible and lasting impacts in the lives of households and families across New Jersey, New York, Puerto Rico, the U.S. Virgin Islands and beyond. The AHP is a source of pride for all of us at the Bank, and serves as both a true reflection of our mission and a perfect representation of the strength of the partnerships between the Bank, our members, our housing partners, dedicated developers and elected officials at the federal, state and local levels, all focused on creating affordable housing opportunities. It is a partnership we look forward to continuing to build on for the next 50 rounds of grants.”
The $45.8 million in grants represent a portion of the AHP funds that are drawn from the Bank’s earnings. As mandated by Congress, the Bank forgoes 10 percent of its earnings each year to support these neighborhood housing and economic development initiatives.
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 Bank 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 $6.2 billion in AHP funds since the first awards were granted in 1990. At the Federal Home Loan Bank of New York, the AHP has supported 1,882 projects with nearly $790 million in grants, helping to create or preserve more than 91,000 units of affordable housing and generating an estimated $13.8 billion in total development costs.
The following New Jersey communities will benefit from the announced funds: Annandale, Cherry Hill, Far Hills, Jersey City, Marlton, Montgomery, Newark, Paramus, Paterson, Readington Township, Ridgewood, South Orange, Tinton Falls, Trenton, Vineland, West Orange and Westwood.
The following New York communities will benefit from the announced funds: Binghamton, The Bronx, Brooklyn, Buffalo, Cortland, Manhattan, Nanuet, Niagara Falls, Rensselaer, Rochester, Schenectady, Scriba and Yonkers, as well as scattered sites.
Grants were also awarded for Bridgeport, Connecticut; Chicago, Illinois; Baltimore, Maryland; and the Pennsylvania communities of Harrisburg and Philadelphia.
José R. González
President and Chief Executive Officer
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This report may contain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “projected,” “expects,” “may,” or their negatives or other variations of these terms. The Bank cautions that, by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, regulatory and accounting rule adjustments or requirements, changes in interest rates, changes in projected business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our membership profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products, and general economic conditions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
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