RISMEDIA, December 28, 2010—The Federal Home Loan Bank of Boston announced that a Manchester initiative will receive more than $2.1 million through its Affordable Housing Program. These funds, awarded in the form of a grant, loan, and interest-rate subsidy, will be used to finance 26 units of affordable rental housing for formerly homeless veterans earning at or below 50 percent of area median income.
“The need for safe, decent affordable housing remains critical in these challenging times,” said Edward A. Hjerpe III, the Bank’s president and CEO. “Beyond increasing the supply of housing, these funds will help create jobs and stimulate economic development in New Hampshire.”
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, which is awarded through a competitive scoring process. The application deadline for next year’s AHP awards is September 30, 2011.
The mission of the Federal Home Loan Bank of Boston is to provide highly reliable wholesale funding and liquidity to member financial institutions in New England, which enables the Bank to deliver competitively priced financial products, services, and expertise that support housing finance and community economic growth, including programs targeted to lower-income households.
Member: Merrimack County Savings Bank
Sponsor: Harbor Homes, Incorporated
Award: $799,799 grant and subsidy, $1,315,390 advance
Units: 26 rental
Manchester Somerville St. Veterans FIRST Project. With a downtown warehouse facing foreclosure, and the community at risk for losing HUD supportive operating funds, the sponsor purchased the building and assumed the outstanding debt in order to complete the HUD-supported housing process, preserving the capital and operating subsidy dedicated for this project. This initiative will offer very low-income, formerly homeless veterans in-house services such as job matching, job placement, and substance abuse counseling to help them reintegrate into the community. Merrimack County Savings Bank provides permanent debt through the AHP-subsidized advance and another permanent loan. Other funding includes a HUD special project earmark and financing from the New Hampshire Housing Finance Authority, Veterans Affairs, and the City of Manchester.
Information on the award follows, and is also available at www.fhlbboston.com/ahp.