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FEDERAL HOUSING FINANCE BOARD APPROVES
$7.8 MILLION FOR AFFORDABLE HOUSING PROJECTS

Washington, D.C. -- The Federal Housing Finance Board today approved $7.8 million in 1997 Affordable Housing Program (AHP) awards to help finance 2,138 housing units, the majority of which will house very-low income families. Today's approvals are the first part of the second 1997 funding round cycle for the AHP, which will provide approximately $119.7 million in Federal Home Loan Bank System funds this year.

The Finance Board approved 78 applications for a wide range of projects that will receive AHP funds through the Federal Home Loan Banks (FHLBanks) of Indianapolis and Pittsburgh. Of the 2,138 housing units to be created, 1,528, or 71 percent, are earmarked for very low-income households. The $7.8 million in AHP funds will leverage $46.4 million in total development costs for a leverage ratio of nearly 19 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 construction, purchase, or rehabilitation of affordable housing for very low-income to moderate-income households. The next AHP funding round is in December, when applications from the FHLBanks of Boston, New York, Atlanta, Cincinnati, Chicago, Des Moines, Dallas, Topeka, San Francisco and Seattle will be approved. Examples of projects in this funding round include:

o Core States Bank of Philadelphia will obtain a $280,000 AHP direct subsidy from the FHLBank of Pittsburgh to help finance the acquisition and rehabilitation of a 73-unit building for the elderly in Philadelphia. The project sponsors, The Community Builders, Inc., and the Albert Einstein Healthcare Network, have targeted all 73 units for very low-income elderly households. Other financing sources for this $7.7 million project include funds from HUD's Section 202 program, foundations, Community Development Block Grant (CDBG) and sponsor's equity.

o Workingmen's TNB Bank of Bloomington, Indiana, will obtain an AHP direct subsidy of $221,000 from the FHLBank of Indianapolis to help finance the construction of a 48-unit rental apartment complex for the elderly in Ellettsville, Indiana. Area 10 Council on Aging of Monroe and Owens Counties, Inc., the project sponsor, has targeted 36, or 75 percent, of the units for very low-income households. Other financing for this $2.8 million project includes funds from the Monroe County Bank, Low Income Housing Tax Credits and equity from the sponsor.

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(Contact the Federal Home Loan Bank in your District for a list of approved projects)

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