NEW YORK, Nov. 25, 2024 (GLOBE NEWSWIRE) -- José R. González, president and CEO of the Federal Home Loan Bank of New York (“FHLBNY”), announced that the FHLBNY has awarded a record $70.8 million in subsidies to fund 61 affordable housing initiatives throughout New Jersey, New York, Puerto Rico, Connecticut, Maine, Maryland, Pennsylvania, Texas and Wisconsin. These awards are funded through the FHLBNY’s Affordable Housing Program (“AHP”), and will result in the creation, rehabilitation or preservation of 3,470 units, including 1,017 units dedicated to very low-income housing. The awards will not only help provide housing, but also drive community development: it is anticipated that nearly $1.2 billion in housing investments will result from the development of these initiatives.
With the announcement of these grants, the FHLBNY becomes the first Federal Home Loan Bank to surpass $1 billion in total AHP awards. The AHP was created by Congress in 1989, and the Federal Home Loan Banks have awarded more than $8 billion in AHP funds since the first awards in 1990. At the FHLBNY, the AHP has supported 2,111 projects with more than $1 billion in grants, helping to create or preserve more than 104,000 units of affordable housing, leveraging an estimated $19 billion from other funding sources.
“Surpassing $1 billion in Affordable Housing Program grant funding is a testament not only to the Federal Home Loan Bank of New York’s continued commitment to the communities we serve, but also the strength of the partnerships we have built with our members and local housing organizations,” said Mr. González. “These institutions are vital to the stability and growth of cities and towns across our region, and we are proud to support these efforts through both our housing and community development grant programs and the daily availability of our liquidity. We make our broadest contributions to housing and community development through executing on our foundational liquidity mission, and our ability to do so consistently has positioned the FHLBNY to be a reliable and trusted funding partner for affordable housing initiatives across our region for the past four decades. Creating safe, decent and affordable housing is critical work, and we are honored to be a part of it.”
The $70.8 million in grants represent a portion of the AHP funds that are drawn from the FHLBNY’s earnings. As mandated by Congress, each Federal Home Loan Bank dedicates 10 percent of its earnings each year to support these neighborhood housing and economic development initiatives; for 2024, the Federal Home Loan Banks voluntarily agreed to contribute 15 percent of the prior year’s earnings to support housing and community development initiatives. The AHP is designed to address local housing needs by supporting local efforts of members and housing partners in these communities. For more information on the individual 2024 AHP grants, please click here.
The FHLBNY’s AHP provides members with direct subsidies which are passed on for the benefit of 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 submitted by a financial organization that is a member of the FHLBNY in partnership with a community-based sponsoring organization.
The following New Jersey communities will benefit from the announced funds: Camden, Chatham, Demarest, Edison, Madison, Maple Shade, Robbinsville, Somerset, Tuckerton and Woodbury.
The following New York communities will benefit from the announced funds: Albany, Ballston Spa, Belmont, Binghamton, The Bronx, Brooklyn, Buffalo, Cairo, Greenburgh Highland, Jamestown, Lockport, Manhattan, Niagara Falls, Ogdensburg, Rochester, Schenectady, South Dayton, Utica and Wellsville.
The following Puerto Rico communities will benefit from the announced funds: Caguas, Lajas, Lares, San Juan and Santa Juanita.
Grants were also awarded for New Britain, Connecticut; Portland, Maine; Hagerstown, Maryland; Philadelphia, Pennsylvania; Austin, Texas; and Stoughton, Wisconsin.
Federal Home Loan Bank of New York
The Federal Home Loan Bank of New York is a Congressionally chartered, wholesale Bank. It is part of the Federal Home Loan Bank System, a national wholesale banking network of 11 regional, stockholder-owned banks. As of September 30, 2024, the FHLBNY serves 338 financial institutions and housing associates in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands. The mission of the FHLBNY is to provide members with reliable liquidity in support of housing and local community development.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
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 on 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, the Risk Factors set forth in our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q filed with the SEC, as well as 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. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to revise or update publicly any forward-looking statements for any reason.
CONTACT: Brian Finnegan
(212) 441-6877
brian.finnegan@fhlbny.com
