La Casa de Don Pedro, Inc. was recently awarded a $60,000 affordable housing grant from the Federal Home Loan Bank of New York. The grant is likely to be used to help finance construction costs for the Lower Broadway Stabilization Program, which will transform five vacant lots and one abandoned residential property into six homes to be sold to first-time homebuyers. City National Bank of New Jersey, a Home Loan Bank member, submitted the application for the funding.
“The Affordable Housing Program grant provided today by the Federal Home Loan Bank of New York and City National Bank of New Jersey will help six households purchase their first home,” said Representative Albio Sires (NJ, 13). “Responsible homeownership is vital to the strength of any community, and Newark will benefit from these new homeowners.”
In 2009, the Federal Home Loan Banks marked the 20th anniversary of the Affordable Housing Program (“AHP”), which was created by Congress in 1989. Since the Program’s inception, the Federal Home Loan Banks have provided more than $3.6 billion to facilitate more than 15,000 affordable housing projects across the nation. These grants have created nearly 670,000 units of affordable housing. At the Federal Home Loan Bank of New York, the AHP has supported nearly 1,200 projects with grants totaling more than $330 million, creating more than 48,000 units of affordable housing and generating nearly $6 billion in total development costs.
“For the past two decades, the Affordable Housing Program has been one of the nation’s most successful housing initiatives because of the partnership between the Home Loan Bank, our members, community organizations and elected officials,” said Alfred A. DelliBovi, president and CEO of the Federal Home Loan Bank of New York. “As we celebrate the start of a new decade, we look forward to continuing this partnership and helping to build stronger communities across the Garden State for years to come.”
The $60,000 grant will be used to help fund construction costs for the Lower Broadway Stabilization Project, which involves the transformation of five vacant lots and one abandoned residential property into six homes which will be sold to first-time homebuyers. The prospective homeowners will be moderate-, low-, and very low-income families, and will be required to attend homebuyer education classes and post-purchase counseling. Homebuying classes will focus on budgeting, credit counseling, and the entire homebuying process. Post-purchase counseling will cover home maintenance and landlord/tenant rights and responsibilities.
Additional funding will be provided by the New Jersey Housing and Mortgage Finance Agency CHOICE Program, City of Newark HOME funds, and the Local Initiatives Support Corporation. In addition, the homebuyers will be eligible to apply for downpayment assistance through the City of Newark’s American Dreams Downpayment Assistance Program.
This grant is part of a total of $16 million in AHP subsidies that the Federal Home Loan Bank of New York has awarded in conjunction with the approval of the second competitive application round of 2009. The grants announced today will help to finance the creation of 37 housing projects that will generate 1,901 units of affordable housing in New Jersey, New York, Maryland and Pennsylvania. In August 2009, the Federal Home Loan Bank of New York awarded grants for the first application round of 2009 totaling $16 million to fund 39 housing projects that will generate 1,545 units of affordable housing. For more information on these grants, please visit www.fhlbny.com/news/pressrelease.htm.