Vermont gets $2.9 million for affordable housing from FHLB

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Vermont gets $2.9 million for affordable housing from FHLB

Thu, 12/22/2016 - 10:03am -- tim

Vermont Business Magazine The Federal Home Loan Bank of Boston (FHLB Boston) has announced that 45 initiatives will receive $56.4 million in grants, loans, and interest-rate subsidies through its 2016 Affordable Housing Program (AHP) allocation. These funds will finance 1,100 units of affordable rental and ownership housing for households earning at or below 80 percent of area median income in seven states, including $2.9 million in projects for Vermont. Vermont projects are located in Brattleboro, Middlebury, North Bennington, Plainfield, and Rochester.

VERMONT

Location: Brattleboro
Member: Passumpsic Savings Bank
Sponsor: Windham & Windsor Housing Trust
AHP Units: 20 rental units
Subsidy: $650,000 grant

Brattleboro Supportive Housing
Conversion of an extended stay motel into 22 efficiency and one-bedroom, permanent supportive housing units for very low-income residents with special needs. The initiative will involve substantial renovation of the two existing wood-frame buildings and the addition of a community center which will house office space, laundry facilities, and a shared kitchen. Windham & Windsor Housing Trust will economically empower residents through healthcare and self-sufficiency services, to include programs on tenant rights and responsibilities, mediation, and budgeting. In addition to the $650,000 AHP Direct Subsidy, Passumpsic Savings Bank will purchase the Federal Low Income Housing Tax Credits.

Location: Middlebury
Member: National Bank of Middlebury
Sponsors: Green Mountain Development Group, Incorporated; Sugarwood Associates; and Addison County Community Trust, Inc.
AHP Units: 11 rental units
Subsidy: $857,145 grant and subsidy, $564,764 advance

Sugarwood Apartments
Acquisition and rehabilitation to preserve 12 rental apartments of affordable housing for very low- and low-income residents. The rehabilitation will focus on building envelopment improvements and energy efficiency upgrades. Residents will benefit from comprehensive economic empowerment services including financial planning, budget, and credit counseling and involvement in management of the initiative through the creation of and participation in a residents' council. The National Bank of Middlebury will provide construction financing through the AHP Subsidized Advance, and invest in federal and state Low Income Housing Tax Credits. A separate loan from the sponsor to the project will provide the remaining financing.

Location: North Bennington
Member: People's United Bank, National Association
Sponsor: Shires Housing, Inc.
AHP Units: 19 rental units
Subsidy: $319,688 grant and subsidy, $270,000 advance

Lake Paran Village
Acquisition and new construction to create 22 rental apartments for low-, very low-, and market-rate income residents. This mixed-income housing will have a common, central green space, open front porches, and walkways and will incorporate many sustainable building practices and energy-efficient elements. Residents will benefit from economically empowering services such as homeownership readiness and self-sufficiency services, including homeownership education, financial planning, and eviction prevention. People's United Bank, National Association will provide a construction loan and an AHP Subsidized Advance. Other permanent financing includes Low Income Housing Tax Credits, HOME funds, and Community Development Block Grant funds.

Location: Plainfield
Member: People's United Bank, National Association
Sponsors: The Housing Foundation, Inc. (HFI) and Vermont State Housing Authority
AHP Units: 16 rental units
Subsidy: $746,723 grant and subsidy, $475,000 advance

Hollister Hill Redevelopment

Acquisition, demolition, and construction of 16 units of replacement rental housing. The proposed project will consist of two buildings with eight units each plus a community building. All of the units will be ADA-accessible and energy efficient. The three one-bedroom, ten two-bedroom, and three three-bedroom unit mix is targeted to families earning at or below 50 percent and 60 percent of Area Median Income and have rent payments supported with Section 8/HAP vouchers. The residents will benefit from economically empowering services including workforce readiness and self-sufficiency. AHP will be used for acquisition, construction, and developer fees and other soft costs. People's United Bank, National Association will provide a construction loan, the permanent AHP subsidized advance, and will be an investor in the Low Income Housing Tax Credits.

Location: Rochester
Member: Lake Sunapee Bank, FSB
Sponsor: Rochester Community Care Home, Inc.
AHP Units: 9 rental units
Subsidy: $300,000 grant

Park House Rochester
Rehabilitation of an existing occupied property to modernize and preserve 14 senior rental apartments for very low-income, low-income, and market-rate households. This project is the only community-based residence within a 30-mile radius that supports a shared housing concept designed to enable elderly residents to socialize. The sponsor provides housekeeping and daily meals to all residents. In addition, the residents benefit from self-sufficiency training and transportation services, as well as healthcare services including on-site medical services and medication oversight. Lake Sunapee Bank, FSB will provide construction financing. The project will receive state tax credits and local community grants.

“We are pleased to serve as a vital link, through our members, to critical financing that connects local residents and families to decent, affordable housing,” said Edward A. Hjerpe III, the Bank’s president and chief executive officer. “AHP financing increases access to housing and also contributes to the creation of new jobs and economic growth in our communities.”

AHP funds were awarded through member financial institutions to projects that will create or preserve affordable rental and ownership housing. In total, $29.5 million dollars were awarded as grants and subsidies, with the balance coming as subsidized advances or loans. 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, which is awarded through a competitive scoring process.

Since its inception in 1990, the AHP has funded more than $506 million to create or preserve more than 28,900 affordable housing units in total throughout New England.

“For more than 25 years, AHP financing has expanded its impact and reach to help more families and communities thrive. As a result, our most vulnerable citizens-seniors, veterans, homeless and families-are using the stability of new housing to rebuild and improve their lives in countless ways,” said Kenneth A. Willis, first vice president/director, housing and community investment.

The mission of the Federal Home Loan Bank of Boston is to provide highly reliable wholesale liquidity and funding to member financial institutions in New England, which enables the Bank to deliver competitively priced financial products, services, and expertise that support housing finance and community economic growth, including programs targeted to lower-income households.

Detailed project information on the awards is available here.

Source: BOSTON — Federal Home Loan Bank of Boston 12.21.2016