BOSTON – December 9, 2008 – (RealEstateRama) – The Federal Home Loan Bank of Boston (the Bank) awarded more than $5.0 million as grants, loans, and subsidies to fund 158 units of affordable rental housing in four Vermont communities. Of that amount, nearly $1.7 million is in the form of a grant or subsidy. In all, 24 initiatives in eight states received more than $22.8 million in grants, loans, and rate subsidies as part of the Bank’s Affordable Housing Program (AHP) to create or preserve 816 rental and ownership units for very low-, low-, and moderate-income individuals and families.
Each year, the Bank commits 10 percent of its net profits to provide grants and subsidized, below market-rate loans through the AHP. “The awards will help stimulate economic development during these tough times,” said Michael A. Jessee, the Bank’s president and chief executive officer. “I commend our member banks for their efforts to increase the stock of decent affordable housing in our communities.”
Congressman Peter Welch added, “As the financial situation worsens, we must bolster our commitment to our most vulnerable neighbors, including those in need of affordable housing, Vermonters must have access to affordable housing, and it will require local support and community-based projects to tackle this important challenge.”
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 17, 2009.
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: Burlington
Member: Chittenden Trust Company
Sponsor: Cathedral Square Corporation
Units: 101 rental
Subsidy: $794,547 grant and subsidy, $2.45 million advance
Three Cathedral Square. Renovation of an existing downtown property to produce 101 units of affordable, energy-efficient housing for very low- and low-income seniors. Built in 1979, this initiative represents a significant portion of the city’s affordable senior housing stock. Residents will continue to benefit from nearby transportation, a licensed health-care facility, and a residents council. Chittenden Trust Company provides permanent financing through an AHP-subsidized advance. Additional funding will come from Low Income Housing Tax Credits, the Department of Housing and Urban Development, and the Vermont Housing and Conservation Board.
Location: Enosburg Falls
Member: Merchants Bank
Sponsor: Vermont State Housing Authority
Units: 30 rental
Subsidy: $424,861 grant and subsidy, $425,000 advance
River Bend Senior Housing. Acquisition and rehabilitation of an occupied apartment building to preserve 30 units of senior housing for households at or below 60 percent of area median income. All units will be energy efficient and use Section 8 subsidies to keep rents affordable. Residents will benefit from managed healthcare and an onsite resident coordinator, as well as the opportunity to participate in community organizing activities. Merchants Bank provides permanent financing though the AHP-subsidized advance. Additional funding comes from Low Income Housing Tax Credit equity, the USDA, and the Vermont Housing and Conservation Board.
Location: West Brattleboro
Member: Chittenden Trust Company
Sponsor: Housing Vermont
Units: 21 rental
Subsidy: $267,673 grant and subsidy, $225,000 advance
Ann Wilder Richards Building Redevelopment. Acquisition of a vacant commercial building to create 21 energy-efficient units of rental housing and commercial space, cosponsored with Brattleboro Housing Authority. The studio, one-, and two-bedroom units will target seven very low-income households, 11 low-income households, and three moderate-income households. Seven units are expected to receive Section 8 operating subsidies. The development is adjacent to a Brattleboro Housing Authority senior housing development and will create a campus-type setting with many services, such as GED training, transportation, and after-school programs. Chittenden Trust Company provides the permanent financing through the AHP-subsidized advance in addition to other permanent debt. Low Income Housing Tax Credit equity and Vermont Housing and Conservation Board are providing additional funding.
Location: Winooski
Member: Opportunities Credit Union
Sponsor: Burlington Housing Authority
Units: 6 rental
Subsidy: $208,960 grant and subsidy, $250,000 advance
Webster House. Acquisition, renovation, and partial demolition of a six-unit historic downtown building to create affordable rental housing for very low-income, formerly homeless individuals with disabilities. All units, which will be energy efficient, will benefit from project-based Section 8 funding. The sponsor is proposing a partnership with ReCycle North, which will use the project as a training and demonstration site for their YouthBuild Program and recycle all salvageable materials. Opportunities Credit Union provides the permanent financing through the AHP-subsidized advance, as well as employment training and financial literacy counseling. Vermont Housing and Conservation Board, Burlington Housing Authority, and the City of Winooski provide additional funds.
