Connecticut Awarded $745,000 in Grants for Affordable Housing
Bridgeport, Meriden, and New London Initiatives Will Create 57 Rental and Ownership Units
BOSTON, Nov. 29 /PRNewswire/ — The Federal Home Loan Bank of Boston (the Bank) awarded $745,000 in grants to fund 57 units of affordable housing in Bridgeport, Meriden, and New London. In all, 25 New England initiatives received more than $16 million in grants, loans, and rate subsidies as part of the Bank’s Affordable Housing Program (AHP) to create or preserve 674 rental and ownership units for very low-, low-, and moderate-income individuals and families.
Each year, the Bank sets aside 10 percent of its net profits to provide grants and subsidized, below market-rate loans through the AHP. “Regardless of the economy, AHP funds always provide a welcome boost for affordable housing initiatives,” said Michael A. Jessee, the Bank’s president and chief executive officer. “Safe, decent, affordable housing is essential for everyone, and the Bank is proud to contribute to the well-being of the region.”
Congressman Christopher S. Murphy (D-5) added, “I am thrilled that Meriden will receive this grant not only because the funds will be used to revitalize an affordable housing location in the city, but also because the homes will include important energy efficient elements. This project will make a smart investment in affordable housing in our communities, and should be used as a model in future affordable housing endeavors.”
“I am grateful for this funding, which will create homeownership opportunities for first-time home buyers,” said Congressman Christopher Shays (R-4). “The need for high-quality affordable housing in Fairfield County cannot be overstated.”
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 18, 2008.
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.
Location: Bridgeport
Member: Connecticut Community Bank, N.A.
Sponsor: Habitat for Humanity of Coastal Fairfield County
Number and Type of Units: 20 ownership units
Amount and Type of Subsidy: $300,000 grant
Habitat Neighborhood Rebuild 8. Creation of 20 homeownership units for
first-time home buyers on the East Side. This initiative involves the
rehabilitation of a historic, multifamily building and construction of new
homes on vacant and abandoned lots. Five single-family, three two-family,
and 12 attached townhouses will be affordable to very low-income
households. Residents will benefit from extensive services including sweat
equity, financial planning, home-buyer counseling, and a homeowners’
association. Connecticut Community Bank, N.A. will provide construction
financing.
Location: Meriden
Member: Bank of America Rhode Island, N.A.
Sponsor: Housing Authority of the City of Meriden
Number and Type of Units: 34 rental units
Amount and Type of Subsidy: $400,000 grant
Chamberlain Heights — Hollis Drive (Phase One). Rehabilitation and
construction of 34 rental units in 10 vacant and blighted former public
housing buildings. These units, which will incorporate energy-efficient
elements, will serve 21 very low-income families and 13 families earning
less than 60 percent of the area median income. This effort is the first
of two phases to redevelop 124 public housing units in 34 buildings. The
sponsor will provide economic empowerment services including daycare on
site. Bank of America Rhode Island, N.A. will provide construction and
permanent financing, and Low Income Housing Tax Credit equity will provide
the majority of the capital funding.
Location: New London
Member: Liberty Bank
Sponsor: Habitat for Humanity of Southeastern Connecticut
Number and Type of Units: 2 ownership units
Amount and Type of Subsidy: $30,000 grant
Habitat Davis Farm Phase 1. Construction of two energy-efficient, three-
bedroom homes and a public access road on donated land for sale to first-
time home buyers — one very low-income and one earning less than 60
percent of the area median income. Home owners will provide sweat equity
and the sponsor will offer economic empowerment services, including pre-
and post-purchase homeownership counseling and computer training. This is
the first of two phases of a six-home development. Liberty Bank is
providing construction financing and private donations make up the balance
of the funding.
Location: New London
Member: Liberty Bank
Sponsor: Habitat for Humanity of Southeastern Connecticut
Number and Type of Units: 1 ownership unit
Amount and Type of Subsidy: $15,000 grant
Habitat Rehab Project 385 Broad Street. Rehabilitation of a Victorian home
built in 1884 to provide ownership housing for a homeless family earning
less than 50 percent of the area median income. The property was donated
by the previous owner. The sponsor and service providers in the area will
provide the buyer with supportive services including homeownership
counseling, financial training, and daycare, and the family will provide
sweat equity. The sponsor will partner with Connecticut Light and Power to
provide energy-efficient elements at no additional cost. The home owner
will enter into an agreement with the sponsor to maintain long-term
affordability on the home. While the project is primarily funded by
donations and will be completed by volunteers, Liberty Bank will provide
construction financing.
SOURCE Federal Home Loan Bank of Boston
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