PHILADELPHIA, PA – April 14, 2009 – (RealEstateRama) — Philadelphia Mayor Michael A. Nutter, Congressman Chaka Fattah (D-02), and the Federal Home Loan Banks of Pittsburgh and San Francisco (FHLBanks) today announced the awarding of $9.87 million in affordable housing grants for the construction and rehabilitation of 861 units of affordable housing at 18 project sites.
With today’s grants, FHLBank Pittsburgh has contributed a total of more than $42 million to affordable housing projects across Greater Philadelphia. These latest grants also represent the largest single-year Affordable Housing Program contribution by FHLBank Pittsburgh to projects located within the City of Philadelphia ($6.68 million).
Funded projects include both rental and for-purchase properties that will assist a wide variety of clients including the homeless, first-time homebuyers, the elderly, individuals with mental and physical disabilities and veterans of the Iraq and Afghanistan wars.
The grants come from two of the nation’s twelve Home Loan Banks, congressionally chartered wholesale banks that use private capital to help local lenders fund home mortgages, business loans and other community and economic development needs. Each year, the FHLBanks set aside ten percent of their individual net income in the form of Affordable Housing Program (AHP) grants. The grants announced today are the result of competitive funding rounds that took place in 2008, keyed to the FHLBanks’ 2007 earnings.
“Now more than ever, we need affordable, high quality housing here in Philadelphia,” said Mayor Nutter. “These projects, located all over the city, are a wonderful example of what can be done when government and the private sector join forces.”
“The Federal Home Loan Banks are to be commended for stepping up in these tough economic times to fund 861 units of affordable housing across Philadelphia and our region,” said Congressman Fattah, a leading advocate for the congressionally chartered system. “The FHLBanks, and especially our friends at the Bank in Pittsburgh are the good guys, extending grants to those in our community most seriously in need of housing assistance.”
“Our Affordable Housing Program helps project sponsors stretch their dollars in both good times and bad, and covers the funding gap necessary to make a critical project a reality,” said David Buches, Manager of Community Investment at FHLBank Pittsburgh. “We’re pleased to once again partner with Mayor Nutter, Congressman Fattah, project sponsors and local member financial institutions to help create affordable housing for those who most need it.”
“As the nation deals with a recession and the housing market attempts a recovery, the $79 million in AHP grants awarded across the country by the FHLBank of San Francisco in 2008 are helping to provide invaluable funding for affordable housing projects that will make a difference to many urban and rural communities,” said Lawrence H. Parks, Senior Vice President, Legislative and External Affairs, FHLBank San Francisco. “The $1.9 million in AHP grants we awarded to two service-enriched projects in Philadelphia will leverage over $27 million in total development costs. The Affordable Housing Program is more crucial now than ever before.”
Today’s event at Philadelphia City Hall was attended by dozens of affordable housing advocates, bankers and other civic leaders. It was emceed by Brian A. Hudson, executive director of the Pennsylvania Housing Finance Agency (PHFA), who also serves as a director of FHLBank Pittsburgh.
Chartered by Congress, FHLBank Pittsburgh and FHLBank San Francisco help meet the borrowing needs of communities by providing wholesale credit products and services to member financial institutions. The FHLBanks are privately owned by their members, which include commercial banks, savings institutions, credit unions, thrift and loan companies and insurance companies. They are part of a network of twelve FHLBanks established to provide low-cost credit to residential housing lenders. More recently, the FHLBanks have expanded their activities in the area of community and economic development by offering tax-exempt letters of credit in support of public-purpose projects.