BOSTON, Nov. 20 /PRNewswire/ -- The Federal Home Loan Bank of Boston (the Bank) awarded more than $3.6 million to fund 92 units of affordable rental housing in Alfred, Bath, Scarborough, and Veazie, Maine. More than $1.6 million is in the form of a grant or advance subsidy. In all, 15 initiatives in New England received almost $15.0 million in grants, loans, and rate subsidies as part of the Bank's Affordable Housing Program (AHP) to create or preserve 449 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. "The AHP is an important way the Bank, our members, and local sponsors address the need for safe, decent affordable housing in New England," said Michael A. Jessee, the Bank's president and chief executive officer. "This round's funds will help diverse population groups, including the elderly, the homeless, and the disabled."
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 27, 2007.
Location: Alfred, Maine Member: Kennebunk Savings Bank Sponsor: York County Shelters Number and Type of Units: 8 rental units Amount and Type of Subsidy: $50,000 grant
Shaker Hill Housing. New construction of eight single-room-occupancy units for very low-income individuals with mental illness, substance-abuse problems, or other disabilities that have contributed to repeated episodes of homelessness. Residents will benefit from extensive supportive services including financial planning, transportation, participation on the residents' council, and the ability to participate on the sponsor's board of directors. This initiative incorporates numerous high-performance, energy-efficient design and construction elements, and contributes to community-organizing activities. The Brothers of Christian Instruction donated the land through a 30-year ground-lease. Kennebunk Savings Bank is providing permanent debt, and a right of first refusal will ensure continuance of use as affordable housing.
Location: Bath, Maine Member: Bath Savings Institution Sponsor: Tedford Shelter Number and Type of Units: 6 rental units Amount and Type of Subsidy: $358,000 grant
Evergreen Woods. New construction of six units of permanent rental housing for very low-income, chronically homeless families. The property will be comprised of three three-bedroom and three two-bedroom apartments. All residents will benefit from extensive services and activities including financial planning, employment training, participation on the residents' council, and the opportunity to participate on the sponsor's board of directors. This initiative reuses previously developed land, is accessible to public transportation, incorporates numerous high-performance, energy- efficient elements, and contributes to community-organizing activities. In addition to the AHP direct subsidy, Bath Savings Institution is providing construction financing and a $10,000 grant. Other funding includes grants from HUD, the Maine State Housing Authority, and owner equity.
Location: Scarborough, Maine Member: TD Banknorth, N.A. Sponsor: Housing Initiatives of New England Number and Type of Units: 54 rental units Amount and Type of Subsidy: $798,514 grant and subsidy, $1,890,000 advance
Bessey Commons Senior Housing. Acquisition and adaptive reuse of the former Bessey School to create 14 apartments for the elderly. Forty additional apartments for the elderly will be created in a new building linked to and compatible with the historic school structure. Thirty-three units will be designated for very low-income households and 21 units will be targeted to low-income households. Residents will have the opportunity to participate in educational programs, on the residents' council, and the sponsor's board of directors. This initiative also incorporates high-performance, energy- efficient design and construction. The Town of Scarborough donated the property. TD Banknorth, N.A. is providing construction financing and an AHP- subsidized advance for permanent financing. Additional funding includes HOME funds, Low Income Housing Tax Credit equity, and owner equity.
Location: Veazie, Maine Member: Merrill Merchants Bank Sponsor: Penquis Community Action Program, Inc. Number and Type of Units: 24 rental units Amount and Type of Subsidy: $436,798 grant and subsidy, $100,000 advance
Veazie Village Senior Housing. Construction of a 24-unit elderly development consisting of 20 one-bedroom and four two-bedroom units targeting 15 very low-income and nine low-income elders. The development will be built in accordance with the Maine State Housing Authority's green-building standards. Supportive services include transportation, financial literacy and planning, and the establishment of a residents' council. Sources of funding include Low Income Housing Tax Credits, Maine State Housing Authority Capital Subsidy Loan, and use of Maine's Tax Increment Financing District law, whereby the Town of Veazie will set up a Tax Increment Financing District and return to the project 100 percent of annual real estate taxes for up to 30 years.
The Federal Home Loan Bank of Boston
