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Half-million-dollar Grant Invigorates Reading's Revitalization Efforts

U.S. Rep. Jim Gerlach (PA-6), alongside representatives of Our City Reading, Sovereign Bank and FHLBank Pittsburgh, announced another $500,000 grant for the city's cornerstone revitalization project — clearing the way for homeownership opportunities for another 100 first-time homebuyers.

"Our City Reading is creating perhaps the single biggest turnaround story in Downtown Reading's recent history," Rep. Gerlach said. "Our success is testament to the great things that can happen when the public sector, private business and nonprofit world pull together."

Flanked by John Connelly, president of Our City Reading and former chairman of FHLBank's Board of Directors, Congressman Gerlach announced that FHLBank member Sovereign Bank will deliver the funding, bringing to $1 million the total amount of grants extended to the ambitious program.

"We've come an extremely long way in a very short time," said Connelly.

The announcement preceded a backyard barbeque and open house showcasing an Our City Reading-renovated six-bedroom home on North 5th Street. FHLBank's previous $500,000 grant through Sovereign Bank helped fund the renovation of 125 housing units.

"We are the comeback city," said Reading Mayor Thomas McMahon. "We're going to make this city and region great again."

The 100 new homebuying opportunities will be available to eligible buyers with an acceptable credit rating and at least a one-year employment history. A minimum $500 down payment will be required, but closing costs will be waived. Special attention will be given to assisting single parents who are making the transition from welfare to work.

"We have been highly successful in transforming unused eyesores into sights to behold, and the pace of our progress is picking up," said Al Boscov, founder and chair of Our City Reading and former chairman of Boscov's Department Stores. "We are giving new life to old properties and fresh hope to hundreds of families."

"I want to recognize the Federal Home Loan Bank for doing a tremendous job in identifying projects like these and making a difference," said Jay Sidhu, president and CEO of Sovereign Bancorp, Inc. and Sovereign Bank. "We are really thrilled to be a part of the vision."

Of more than 300 properties Our City Reading has purchased to date, more than 220 have been sold, 15 are currently for sale, 17 have been or will be demolished and 60 are being rehabilitated. Approximately 85 percent of all Our City Reading homes have been financed by Sovereign to date. The goal of the revitalization project is to renovate at least 100 homes per year.