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2004 Press Releases

FOR IMMEDIATE RELEASE

Contact: Cyla Alcantara, 412-288-2860, calcantara@fhlb-pgh.com

FHLBANK OF PITTSBURGH AWARDS $2.1 MILLION IN GRANTS FOR AFFORDABLE HOUSING DEVELOPMENT IN NEW JERSEY, EASTERN PENNSYLVANIA

PITTSBURGH, PA, June 18, 2004 — The Board of Directors of the Federal Home Loan Bank (FHLBank) of Pittsburgh approved more than $2.1 million in grants under its Affordable Housing Program (AHP) to help finance 17 housing initiatives in eastern Pennsylvania and New Jersey, having total development costs of $29.9 million. The initiatives will create a total of 199 housing units in Coatesville, Dover, Lancaster, Philadelphia, Plymouth Borough, Reading, West Chester and York, PA, and in Elizabeth, NJ.

A leading provider of financial assistance for affordable housing and economic development, the FHLBank of Pittsburgh approved a cumulative total of $4.8 million in affordable housing grants in Delaware, New Jersey, Pennsylvania and West Virginia, helping to finance $67.4 million in total development costs for 33 housing initiatives that will create 765 housing units.

"Making housing and homeownership affordable is imperative to fostering sustainable and livable communities," said James D. Roy, FHLBank of Pittsburgh president and chief executive officer. "I'm grateful to our member institutions and community partners for continuing to open doors to safe, affordable housing for the region's lower-income individuals and families."

The AHP provides FHLBank member financial institutions with grants and below-market-rate loans that are then distributed to qualified project developers and sponsors. AHP financing is combined with other funding sources to create homeownership and rental housing for lower-income families and individuals.

"Together with our members and partners, we've been able to maximize AHP dollars in ways that bring wide-ranging and far-reaching benefits to individuals, families, neighborhoods and communities all around our region," said John J. Bendel, director of Community Investment at the FHLBank.

The FHLBank received 80 applications in the 2004 funding round. All applications were submitted through AHP Online, the program's paperless electronic application submission process. Project applications must meet certain criteria to compete for funding, and are scored based on a system developed by the FHLBank, its Board of Directors and its Affordable Housing Advisory Council.

The 17 projects approved for funding in eastern Pennsylvania and New Jersey are:

Project: Cambria Terrace
Member Bank: The Peoples Bank of Oxford
Project Sponsor: Habitat for Humanity of Chester County, Inc.
Project Description: $170,000 to build 17 homes for very-low and low-income families at the former Oak Street public housing complex in Coatesville

Project: Concord Road Place
Member Bank: Sovereign Bank
Project Sponsors: Gaudenzia, Inc., Sherick Project Management, Inc.
Project Description: $110,000 to renovate and rehabilitate a one-story building in West Chester into 16 units of permanent supportive housing for homeless persons recovering from substance abuse, mental illness/disorders or HIV/AIDS

Project: Dover Project
Member Bank: Waypoint Bank
Project Sponsor: York Habitat for Humanity
Project Description: $56,000 to construct eight single-family homes in the Spring Valley Manor II subdivision in Dover targeted to low-income homebuyers

Project: Homeownership Initiative
Member Bank: Sovereign Bank
Project Sponsor: Brand New Day, Inc.
Project Description: $150,000 to develop ten units in Elizabeth for sale to low- to moderate-income first-time homebuyers

Project: Homes in Belmont
Member Bank: Sovereign Bank
Project Sponsor: Friends Rehabilitation Program, Inc.
Project Description: $35,000 to rehabilitate vacant structures at scattered sites in Philadelphia into seven homes for sale to low- to moderate-income first-time homebuyers

Project: HRP 2004
Member Bank: PNC Bank, NA
Project Sponsor: Frankford Community Development Corporation
Project Description: $30,000 to renovate six homes at scattered sites in Philadelphia's Frankford community for sale to low- to moderate-income first-time homebuyers

Project: Inglis Gardens at Washington Lane
Member Bank: Sovereign Bank
Project Sponsors: Inglis Housing Corporation, Diamond & Associates
Project Description: $70,000 to construct a new 15-unit complex in northwest Philadelphia designed for individuals with severe mobility impairments who wish to live independently

Project: Mifflin Street Apartments
Member Bank: Waypoint Bank
Project Sponsor: Tabor Community Services, Inc.
Project Description: $35,000 to renovate five rental units allocated as permanent housing for the homeless disabled, housed among twelve units in two blighted buildings on East King Street in Lancaster

Project: New Beginnings II
Member Bank: Leesport Bank
Project Sponsor: Opportunity House
Project Description: $410,000 to create five rental units in Reading for families transitioning from homelessness

Project: Pradera III
Member Bank: PNC Bank, NA
Project Sponsors: Asociacion de Puertorriqueños en Marcha, Inc.,
Mullin and Lonergan Associates, Inc.
Project Description: $300,000 to build 30 new single-family homes in Philadelphia's Berks Street corridor targeted to first-time homebuyers

Project: Reinhard Street Project
Member Bank: National Penn Bank
Project Sponsor: Resources for Human Development
Project Description: $149,773 to construct 15 new single-family townhomes on Reinhard Street in Philadelphia targeted to very-low- to moderate-income first-time homebuyers

Project: St. Vincent Apartments
Member Bank: Community Bank & Trust Co.
Project Sponsors: Catholic Social Service of the Diocese of Scranton,
GKH Consulting Company
Project Description: $130,000 to rehabilitate a former school to create 19 rental units for lower-income residents in Plymouth Borough

Project: Stable Homes for Stable Families III
Member Bank: PNC Bank, NA
Project Sponsor: Allegheny West Foundation
Project Description: $225,000 to rehabilitate vacant properties into 15 homes in North Philadelphia's Allegheny West section targeted to lower-income homebuyers

Project: Thomas Street Project
Member Bank: Waypoint Bank
Project Sponsor: York Habitat for Humanity
Project Description: $28,000 to renovate four rowhomes on Thomas Street in York targeted to lower-income homebuyers

Project: UCCDC Affordable Homeownership Program
Member Bank: Prudential Savings Bank
Project Sponsor: United Communities Community Development Corporation
Project Description: $50,000 to renovate five rowhomes on South Beulah, Dudley, Hoffman and Winton streets in southeast Philadelphia for sale to first-time homebuyers

Project: Women of Excellence
Member Bank: PNC Bank, NA
Project Sponsors: Women of Excellence, Philadelphia Housing Development Corporation
Project Description: $112,000 to renovate a vacant three-story building in Philadelphia to create 14 single-room-occupancy units targeted to women recovering from homelessness and substance abuse

Project: Year 27 Homeownership
Member Bank: Sovereign Bank
Project Sponsor: New Kensington Community Development Corporation
Project Description: $80,000 to rehabilitate eight scattered-site properties in Philadelphia's Kensington neighborhood targeted to lower-income first-time homebuyers

For details on these projects, click here.

Since the AHP began in 1990, the FHLBank of Pittsburgh has awarded $121 million in housing grants for projects in Delaware, Maryland, New Jersey, Pennsylvania and West Virginia. Of that total, $104.9 million was awarded through the AHP funding rounds and $16.1 million through the Home Buyer Equity Fund (HBEF), the FHLBank's program that assists first-time homebuyers with down payment and closing costs. AHP funding, leveraged with funding from other sources, has resulted in more than $1.7 billion in total development, representing more than 19,000 affordable housing units.

The Federal Home Loan Bank of Pittsburgh, with assets of more than
$57 billion, serves nearly 350 financial institution members in Delaware, Pennsylvania and West Virginia. It is one of twelve FHLBanks, all private cooperatively owned banks that provide wholesale housing finance, community lending and correspondent banking services to member banks, savings institutions, credit unions and insurance companies.