The Federal Home Loan Bank of New York has $2.63 million for three local groups for affordable housing initiatives in Buffalo and Springville to renovate or preserve more than 360 apartments and homes for low-income occupants.
The grants are part of $26.4 million in Affordable Housing Program subsidies that the quasi-governmental, congressionally chartered wholesale bank owned by local bank members will award in 2012. The package will finance 37 affordable housing initiatives that will create or preserve 2,679 affordable housing units, including more than 2,000 units of housing for very low-income people, in New York, New Jersey and Pennsylvania.
“Housing is a cornerstone of our economy, a key driver of economic development and job growth, and the foundation of strong families and vibrant communities,” Alfred DelliBovi, president and CEO of the Federal Home Loan Bank of New York, said.
The bank awarded a $2 million grant to Liberty Affordable Housing Inc. to help pay for the Maryner Towers project to preserve 290 units of housing for “very low-income families” in Buffalo. The project involves buying, rehabilitating and preserving the apartments. The complex’s Section 8 contract under the Department of Housing and Urban Development expires in 2014, but HUD has agreed to extend the contract for 15 years.
Financing will come from New York State Homes and Community Renewal, and City of Buffalo HOME, along with the Homes for Working Families program, with an Affordable Housing Program subsidy being used for rehab costs. Norwich-based NBT Bancorp, parent of NBT Bank and a member and owner of the Federal Home Loan Bank, had applied for the grant.
The Federal Home Loan Bank awarded a $567,000 grant to Conifer Realty LLC to help fund the Springrook Apartments Preservation project and renovate 63 apartment units in Springville.
Plans call for renovating the Springbrook apartment complex that provides housing for low-income and very low-income families and seniors, to ensure the complex’s major building systems will preserve it for affordable housing. The complex has three buildings with 50 one-bedroom units, five two-bedroom units and eight three-bedroom units. Fifty units are reserved for seniors; the rest are for families.
The Affordable Housing Program subsidy will help finance renovation costs, while the rest of the financing will come from tax-exempt bond proceeds, interim income, federal tax credit equity, the New York State Housing Finance Agency, the New York State Housing Trust Fund and a deferred developer fee. Buffalo-based First Niagara Financial Group applied for the grant.
“The need for safe and affordable housing is critical in these challenging times,” said Buford Sears, First Niagara’s Western New York market executive. “First Niagara is proud to support our community in this impactful way.”
Belmont Housing Resources for Western New York will receive a $130,000 grant to help finance the Promise Neighborhood Home Improvement Program to rehab 10 existing owner-occupied homes in Buffalo for five very low-income families, four low-income families and one moderate-income household.
The program will provide funding for home improvements, as well as education and referral services for predatory-lending prevention and awareness counseling, and workshops on home maintenance, repairs and improvements. The Affordable Housing Program subsidy will partially pay for construction costs, which will also be funded through New Opportunities Community Housing Development Corp. and M&T Bank Corp., which applied for the grant on Belmont’s behalf.
“By working through our partners at the Federal Home Loan Bank, M&T Bank has accessed another funding source to use in our efforts to invest in the Buffalo Promise Neighborhood,” said David K. Chamberlain, senior vice president for M&T and CEO of Buffalo Promise Neighborhood.