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FEDERAL HOUSING FINANCE BOARD APPROVES
$7.7 MILLION FOR AFFORDABLE HOUSING PROJECTS

Washington, D.C. -- The Federal Housing Finance Board today announced that it has approved $7.7 million in 1997 Affordable Housing Program (AHP) awards to help finance 2,312 housing units, primarily for very-low income families. The awards are part of the 1997 first funding round cycle for the AHP, which will provide approximately $119.7 million in Federal Home Loan Bank System funds this year.

The Board approved applications for a variety of projects -- 70 in all -- that will receive AHP funds through the Federal Home Loan Banks (FHLBanks) of Indianapolis and Pittsburgh. Of the 2,312 housing units to be created, 1,580, or 68 percent, are earmarked for very low-income households. The $7.7 million in AHP funds will leverage $157 million in total development costs for a leverage ratio of more than 20 to 1.

The AHP operates as a series of competitions in each of the 12 FHLBank Districts. It provides targeted grants or loans at subsidized rates to FHLBank System members which, in turn, finance the purchase, construction, or rehabilitation of affordable housing for very low-income to moderate-income households.

The next AHP funding round is in June, when applications from the other ten FHLBanks will be approved. Examples of projects in this funding round include:

o PNC Bank NA, of Allentown, Pennsylvania will receive an AHP subsidy of $180,000 from the FHLBank of Pittsburgh to finance the construction of a $4.5 million, 60-unit rental project in Whitehall, Pennsylvania. The project's sponsor, Valley Housing Development Corporation, has targeted 48 of the units (80 percent) for very-low income elderly households. The bulk of the additional financing for the project will come from PNC Bank NA, which will provide $1.6 million in construction and permanent mortgage financing and the purchase of $2.4 million in low income housing tax credits.

o First Indiana Bank of Indianapolis will use an AHP subsidized advance of $1.04 million from the FHLBank of Indianapolis to finance the rehabilitation of 34 units and the construction of six new units of rental housing on scattered sites in the near-eastside of Center Township in Indianapolis. Eastside Community Investment has targeted 20 of the units very-low income households. Financing for the $3.4 million project includes a HUD Homeless Grant, CDBG and HOME funds and low-income housing tax credits.

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