Maine Awarded Funds for Affordable Housing

Bath, and Kittery, and South Portland Initiatives Receive More Than $2 Million

for 57 Units



Dec 09, 2004, 00:00 ET from The Federal Home Loan Bank of Boston

    BOSTON, Dec. 9 /PRNewswire/ -- The Federal Home Loan Bank of Boston (the
 Bank) awarded nearly $2.3 million to fund 57 units of affordable rental and
 ownership housing in Bath, Kittery, and South Portland.  Of that sum, $924,313
 is in the form of grants and subsidies.  In all, 17 initiatives in New England
 received nearly $10.3 million in grants, loans, and rate subsidies as part of
 the Bank's Affordable Housing Program (AHP) to create or preserve 385 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.  "Affordable
 housing is the cornerstone of the Federal Home Loan Bank of Boston's mission,"
 said Michael A. Jessee, the Bank's president and chief executive officer.
 "Beyond the funding, we are proud of the program's record of bringing people
 together to help alleviate the housing-affordability crisis."
     Representative Thomas H. Allen added, "Maine is experiencing a crisis in
 housing, especially for low-income families and individuals.  The Federal Home
 Loan Bank of Boston's Affordable Housing Program is helping to meet the
 burgeoning demand for affordable housing units for qualified Maine families to
 purchase or rent.  I applaud their efforts and look forward to working with
 the Bank to find other ways to make affordable housing available to more Maine
 people."
     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 by a competitive scoring process.  The application deadline for
 the second round of next year's AHP awards is April 29, 2005.
     The Federal Home Loan Bank of Boston (http://www.fhlbboston.com) is a $42
 billion, cooperatively owned wholesale bank for housing finance in the six New
 England states.  Its mission is to support the residential-mortgage and
 community-development lending activities of its members, which include over
 460 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
 http://www.fhlbboston.com/ahp.
 
      Location: Bath, Maine
      Member1: Chittenden Trust Company
      Sponsor: Bath Housing Development Corporation
      Number and Type of Units: 6 ownership units
      Amount and Type of Subsidy: $180,000 grant
 
     New Communities Housing Cooperative of Bath
     New construction of a nine-unit, limited-equity cooperative on a cleaned-
 up brownfield donated by the Bath Iron Works.  Six units will be affordable
 for very low- to low-income families and three units will be sold at market
 rate.  This is the first limited-equity cooperative in Maine.  The sponsor
 will facilitate access to educational and employment-training services and
 provide pre- and post-purchase homeownership counseling, and the City of Bath
 will provide leadership-development training.  Residents have participated in
 the design of this housing and will provide sweat equity.  They will also have
 the opportunity to participate in the cooperative association and serve on the
 sponsor's board of directors.  Chittenden Trust Company is providing
 construction financing, and other funding includes conventional permanent
 financing, Community Development Block Grant funding from the Maine Office of
 Community Development, and an additional grant from the City of Bath.  The AHP
 grant will be used for construction costs.
 
      Location: Kittery, Maine
      Member1: Kennebunk Savings Bank
      Sponsor: York County Shelters
      Number and Type of Units: 8 rental units
      Amount and Type of Subsidy: $182,354 grant and $270,000 advance
 
     Coming Home Project
     Acquisition and rehabilitation of two properties to create apartments for
 eight very low-income homeless individuals challenged with mental illness
 and/or substance abuse.  One property will provide four one-bedroom units for
 more independent living and the second property will contain two, two-bedroom
 apartments, providing SRO-type units for more supported living.  Residents
 will benefit from individualized supportive services, including case
 management, vocational training, and transportation assistance.  Residents
 will have the opportunity to serve on the sponsor's board of directors and a
 residents' council.  Kennebunk Savings Bank will provide construction
 financing as well as permanent financing through the AHP-subsidized advance.
 Additional funding sources include grants from the Maine State Housing
 Authority and the U.S. Department of Housing and Urban Development.  The AHP
 grant will be used for construction and rehabilitation costs.
 
      Location: South Portland, Maine
      Member: Bangor Savings Bank
      Sponsor: Avesta Housing
      Number and Type of Units: 43 rental units
      Amount and Type of Subsidy: $300,000 grant and  $1,100,000 advance
 
     Brickhill Cottages
     Rehabilitation of five historic brick buildings, formerly used as
 dormitories and classrooms for the Maine Youth Center, to create 43 rental
 apartments.  Twenty-six units will be affordable for very low-income families
 and 17 apartments will be affordable for households earning 51 to 60 percent
 of the area median income.  The State of Maine is donating the land through a
 90-year ground lease.  Peoples Regional Opportunity Program will offer daycare
 services, the South Portland Housing Authority will provide family self-
 sufficiency programs, and the sponsor will furnish a resident-services
 coordinator.  Residents will have the opportunity to serve on the sponsor's
 board of directors and the residents' council.  This initiative is located
 near public transportation and is designed to be energy efficient.  Residents
 will participate in a neighborhood crime-watch program.  Bangor Savings Bank
 will also provide an AHP-subsidized advance to fund the permanent loan.
 Additional funding includes Low Income Housing Tax Credits, the Maine State
 Housing Authority, and tax-increment financing from the City of Portland.  The
 AHP funds will be used for construction and rehabilitation costs.
 
     CONTACT:
      Mark S. Zelermyer
      617-292-9750
      mark.zelermyer@fhlbboston.com
 
 

SOURCE The Federal Home Loan Bank of Boston
    BOSTON, Dec. 9 /PRNewswire/ -- The Federal Home Loan Bank of Boston (the
 Bank) awarded nearly $2.3 million to fund 57 units of affordable rental and
 ownership housing in Bath, Kittery, and South Portland.  Of that sum, $924,313
 is in the form of grants and subsidies.  In all, 17 initiatives in New England
 received nearly $10.3 million in grants, loans, and rate subsidies as part of
 the Bank's Affordable Housing Program (AHP) to create or preserve 385 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.  "Affordable
 housing is the cornerstone of the Federal Home Loan Bank of Boston's mission,"
 said Michael A. Jessee, the Bank's president and chief executive officer.
 "Beyond the funding, we are proud of the program's record of bringing people
 together to help alleviate the housing-affordability crisis."
     Representative Thomas H. Allen added, "Maine is experiencing a crisis in
 housing, especially for low-income families and individuals.  The Federal Home
 Loan Bank of Boston's Affordable Housing Program is helping to meet the
 burgeoning demand for affordable housing units for qualified Maine families to
 purchase or rent.  I applaud their efforts and look forward to working with
 the Bank to find other ways to make affordable housing available to more Maine
 people."
     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 by a competitive scoring process.  The application deadline for
 the second round of next year's AHP awards is April 29, 2005.
     The Federal Home Loan Bank of Boston (http://www.fhlbboston.com) is a $42
 billion, cooperatively owned wholesale bank for housing finance in the six New
 England states.  Its mission is to support the residential-mortgage and
 community-development lending activities of its members, which include over
 460 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
 http://www.fhlbboston.com/ahp.
 
      Location: Bath, Maine
      Member1: Chittenden Trust Company
      Sponsor: Bath Housing Development Corporation
      Number and Type of Units: 6 ownership units
      Amount and Type of Subsidy: $180,000 grant
 
     New Communities Housing Cooperative of Bath
     New construction of a nine-unit, limited-equity cooperative on a cleaned-
 up brownfield donated by the Bath Iron Works.  Six units will be affordable
 for very low- to low-income families and three units will be sold at market
 rate.  This is the first limited-equity cooperative in Maine.  The sponsor
 will facilitate access to educational and employment-training services and
 provide pre- and post-purchase homeownership counseling, and the City of Bath
 will provide leadership-development training.  Residents have participated in
 the design of this housing and will provide sweat equity.  They will also have
 the opportunity to participate in the cooperative association and serve on the
 sponsor's board of directors.  Chittenden Trust Company is providing
 construction financing, and other funding includes conventional permanent
 financing, Community Development Block Grant funding from the Maine Office of
 Community Development, and an additional grant from the City of Bath.  The AHP
 grant will be used for construction costs.
 
      Location: Kittery, Maine
      Member1: Kennebunk Savings Bank
      Sponsor: York County Shelters
      Number and Type of Units: 8 rental units
      Amount and Type of Subsidy: $182,354 grant and $270,000 advance
 
     Coming Home Project
     Acquisition and rehabilitation of two properties to create apartments for
 eight very low-income homeless individuals challenged with mental illness
 and/or substance abuse.  One property will provide four one-bedroom units for
 more independent living and the second property will contain two, two-bedroom
 apartments, providing SRO-type units for more supported living.  Residents
 will benefit from individualized supportive services, including case
 management, vocational training, and transportation assistance.  Residents
 will have the opportunity to serve on the sponsor's board of directors and a
 residents' council.  Kennebunk Savings Bank will provide construction
 financing as well as permanent financing through the AHP-subsidized advance.
 Additional funding sources include grants from the Maine State Housing
 Authority and the U.S. Department of Housing and Urban Development.  The AHP
 grant will be used for construction and rehabilitation costs.
 
      Location: South Portland, Maine
      Member: Bangor Savings Bank
      Sponsor: Avesta Housing
      Number and Type of Units: 43 rental units
      Amount and Type of Subsidy: $300,000 grant and  $1,100,000 advance
 
     Brickhill Cottages
     Rehabilitation of five historic brick buildings, formerly used as
 dormitories and classrooms for the Maine Youth Center, to create 43 rental
 apartments.  Twenty-six units will be affordable for very low-income families
 and 17 apartments will be affordable for households earning 51 to 60 percent
 of the area median income.  The State of Maine is donating the land through a
 90-year ground lease.  Peoples Regional Opportunity Program will offer daycare
 services, the South Portland Housing Authority will provide family self-
 sufficiency programs, and the sponsor will furnish a resident-services
 coordinator.  Residents will have the opportunity to serve on the sponsor's
 board of directors and the residents' council.  This initiative is located
 near public transportation and is designed to be energy efficient.  Residents
 will participate in a neighborhood crime-watch program.  Bangor Savings Bank
 will also provide an AHP-subsidized advance to fund the permanent loan.
 Additional funding includes Low Income Housing Tax Credits, the Maine State
 Housing Authority, and tax-increment financing from the City of Portland.  The
 AHP funds will be used for construction and rehabilitation costs.
 
     CONTACT:
      Mark S. Zelermyer
      617-292-9750
      mark.zelermyer@fhlbboston.com
 
 SOURCE  The Federal Home Loan Bank of Boston