Manasquan Savings Bank, with eight offices in Monmouth and Ocean Counties, has announced the funding of the construction of two low-income homes through a partnership with Coastal Habitat for Humanity and the Federal Home Loan Bank of New York. The project is part of the Asbury Park Westside Redevelopment project. It is the second project for Manasquan this year. In March, Coastal Habitat for Humanity dedicated a home on Borden Avenue thanks to construction financing through Manasquan Savings Bank.
“These projects are excellent examples of how private industry, government agencies and community organizations can work together to improve the quality of life in our neighborhoods,” states James S. Vaccaro, President of Manasquan Savings Bank. Manasquan Bank must apply for the funding to the Federal Home Loan Bank, which is a congressionally chartered, wholesale bank that is part of the Federal Home Loan Bank System.
Through the funding, Coastal Habitat for Humanity is reimbursed for a substantial amount of the construction costs on their new housing projects. The homes are built with substantial community support and a large amount of “sweat equity” from neighborhood organizations. Manasquan Savings Bank provides the construction financing. The occupants of the new homes are then given a 0% fixed rate mortgage that can be paid back over 30 years.
“We are extremely pleased to continue our relationship with Coastal Habitat for Humanity, the City of Asbury Park and the Federal Home Loan Bank of New York,” says Vaccaro. “As a community bank, we are dedicated to improving the vitality of our surrounding towns and that includes funding for construction and revitalization of our low-income households.”
“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,” said Alfred DelliBovi, president and CEO of the Federal Home Loan Bank of New York. “The Federal Home Loan Bank of New York is proud to support affordable housing initiatives across our region and beyond. We thank all of our partners – the local lenders, the housing groups and our elected officials – for their continued support of the Affordable Housing Program. When we strive to ensure that all have access to affordable housing, we strengthen the fabric of our society.”
The grant is part of $26.4 million in Affordable Housing Program subsidies that the Federal Home Loan Bank of New York will award as its 2012 AHP grant round. In total, these grants will help to finance 37 affordable housing initiatives which will create or preserve 2,679 units of affordable housing, including more than 2,000 units of very low-income housing, in New Jersey, New York and Pennsylvania. The Federal Home Loan Banks have distributed more than $4.6 billion in AHP funds since 1990. At the Federal Home Loan Bank of New York, the AHP has supported 1,355 projects with nearly $450 million in grants, helping to create or preserve nearly 58,000 units of affordable housing and generating an estimated $8.1 billion in total development costs. For more information on today’s grants, please visit www.fhlbny.com/news/pressrelease.htm.
The Federal Home Loan Bank System’s Affordable Housing Program, created in 1989, provides member community lenders with direct subsidies, which are passed on to qualified households through a sponsoring local non-profit organization. AHP financing is combined with other funding sources to create housing for moderate-, low- and very-low-income families. Program awardees receive this funding through semi-annual competitive rounds. Each competing project must be sponsored by a financial organization that is a member of the Federal Home Loan Bank in partnership with a community-based sponsoring organization.