HARRISBURG, PA, Sept. 14, 2007 – U.S. Sen. Robert P. Casey Jr. (D-PA) and U.S. Rep. Tim Holden (PA-17) joined public, private and nonprofit leaders today in celebrating the $100 million milestone of an affordable housing program in Pennsylvania and announced an additional $1.3 million in grants for five new projects in the central part of the state.
The $100 million milestone means that more than 20,000 units of housing for very-low- and low-income families as well as individuals with special needs were created in Pennsylvania through the Affordable Housing Program, or AHP. AHP, a congressionally-mandated initiative, is administered by the Federal Home Loan Bank of Pittsburgh (FHLBank), which is celebrating its 75th year of service.
Begun in 1990, AHP has provided approximately $134 million in grants across the Bank’s district of Delaware, Pennsylvania and West Virginia, with the amount delivered in the Keystone State now surpassing the $100 million mark. Approximately $5 million has been distributed within Pennsylvania’s 17th Congressional District.
FHLBank uses private capital, not taxpayer dollars, in pursuit of its public mission.
“$100 million invested in affordable housing over the last 17 years is a staggering figure and a remarkable success,” said Sen. Casey. “The Federal Home Loan Bank has proven that private companies and government can work together to solve real problems for real people and more than 20,000 units of housing is lasting proof of that.”
During today’s ceremony, held at YWCA-Greater Harrisburg, an additional $1.3 million in AHP grants was announced for five new projects in Harrisburg, Ashland, Carlisle and York. Funded projects include housing for adults suffering from mental illness and female heads of households recovering from substance abuse.
“I congratulate FHLBank Pittsburgh on their 75th Anniversary and strong support of affordable housing programs, which are critical for citizens to hold down a steady job, raise children, and foster healthy families and communities,” said Congressman Holden. “This program is a shining example of how institutions can work together to provide service to our community’s citizens who need affordable housing.”
A broad range of financial support
Chartered by Congress in 1932, FHLBank Pittsburgh, one of 12 regional Banks comprising the FHLBank System, delivers low-cost and at-cost loans as well as grants to the 335 financial institution members of its private cooperative so a steady stream of money is available to strengthen communities during all economic cycles.
FHLBank liquidity, which helps fund local mortgages, plays a special role during periods of market disruption. For example, on August 31, total FHLBank loans to members outstanding nationally had risen by $110 billion, or 17 percent, compared to July 31 – an unprecedented surge in member borrowing. At FHLBank Pittsburgh, the average balance of loans to members outstanding rose to $56.4 billion for the months of July and August, a more than 23 percent increase from the average balance for the entire second quarter 2007 and an all-time high.
“From the Great Depression to the emergence of the global economy to today’s credit crunch, the need for truly affordable housing has been a constant,” said John Bendel, director of Community Investment for FHLBank. “This need was enormous 75 years ago when the Home Loan Bank System was created, and it is just as compelling today. As long as we remain adaptable, there is no end to the good we can do working with our members and community partners.”
Newer community development initiatives
Bendel cited FHLBank’s loans to assist both startup and growing entrepreneurs and at-cost loans that finance municipal improvements such as fire stations, libraries and water filtration plants as examples of the newer work the Bank engages in to meet community needs. FHLBank is making available $7 million in loans to qualifying small businesses in 2007 and maintains an $825 million revolving fund of capital – the Community Lending Program – which members can tap at FHLBank’s cost of funds to help finance local housing projects, business development and a variety of local infrastructure.
YWCA Greater Harrisburg, the site of today’s milestone celebration, is a prior recipient of AHP funds, having built 49 units of transitional housing for very-low- and low-income individuals as part of its headquarters relocation project ten years ago.
Contact: Kendra Barkoff, U.S. Sen. Robert P. Casey Jr., 202-228-6367;
Trish Reilly, U.S. Rep. Tim Holden, 202-225-5546;
">Neil Cotiaux, FHLBank: 412-288-2851, cell: 412-335-9488;
