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2004 Press Releases

FOR IMMEDIATE RELEASE

Contact: Neil Cotiaux, FHLBank of Pittsburgh, 330-703-0753 or
             412/288-2851, neil.cotiaux@fhlb-pgh.com

             Lee Cohen, press secretary, Rep. Melissa Hart, 202-225-2565

HART, FHLBANK UNVEIL FUNDING FOR AFFORDABLE HOUSING; LOW-INCOME INDIVIDUALS AND FAMILIES IN FIVE WESTERN PENNSYLVANIA LOCATIONS TO BENEFIT

ROCHESTER, PA, August 10, 2004 — U.S. Rep. Melissa Hart (PA-4) and James D. Roy, president and chief executive officer of the Federal Home Loan Bank of Pittsburgh, today announced the release of $538,000 in grants to help fund 168 affordable housing units across western Pennsylvania.

Hart, Roy and representatives of five housing advocacy groups spearheading development of the new units held a check presentation ceremony at the Rochester campus of Hosanna Industries, Inc., a faith-based ministry and leader in "blitz-building" affordable housing for
low-income, elderly, physically and mentally challenged, and homeless persons. The 168 units being funded represent both new and renovated units for purchase or rental and available to very-low- and low-income individuals and families in Aliquippa, Freedom, Midland, New Castle and Rochester. The $538,000 released today is part of $4.8 million in grants for 2004 under the FHLBank's Affordable Housing Program (AHP).

"We're extremely pleased with the leadership that Congresswoman Hart and the Federal Home Loan Bank of Pittsburgh have displayed in creating a growing supply of affordable housing across western Pennsylvania," said the Rev. Donn Ed, executive director of Hosanna Industries. "Safe, clean and accessible housing remains a major priority in our area. The funds that Congresswoman Hart and the FHLBank of Pittsburgh have made available ensure that this critical mission continues to be accomplished."

Up to today's announcement, the FHLBank of Pittsburgh's AHP had already funded 34 projects for low-income families and individuals across Rep. Hart's district, building 867 units of housing.

"Today is about partnership," said Roy, the bank's president. "We are delighted to make today's announcement with our member banks, these fine housing sponsors, and a member of Congress who is committed to making housing affordable for all."

FHLBank members instrumental in releasing the grant money and attending today's ceremony are ESB Bank, FSB; First Commonwealth Bank; First National Bank of Pennsylvania; and Mars National Bank.

Project sponsors are Habitat for Humanity of Beaver County; Hosanna Industries; the Housing Authority of Lawrence County; Human Services Center of New Castle; Life and Liberty, Inc.; and Mark E. James of Pittsburgh.

The $538,000 in affordable housing grants announced today encompass:

• $200,000 to construct ten single-family homes to serve very-low- to moderate-income households in Midland Borough. The Liberty Housing Initiative is part of a large-scale effort to promote economic growth and diversity in the borough. Units in Phase I will be modular, two-story, three-bedroom homes. Each will boast an attractive design that matches the typical urban architecture of homes in the Midland community. Beaver County HOME funds are also being utilized for this project.
  
  
• $168,000 to develop 30 affordable housing units in New Castle designated for very-low- and low-income families as well as homeless persons. Twenty-four of the 30 units in Dale Country Estates will be reserved for low-income households, and at least six will be allocated for homeless individuals. The homeless will most likely be elderly parents who are "doubling up" with their adult children or who are living in an institutional setting because they have no permanent residence. The Lawrence County Housing Authority will ensure all residents' needs are addressed by social service agencies, and it is anticipated that the Office of Aging will provide a variety of onsite services in the project's atrium.
  
  
• $100,000 to renovate 120 older dwellings in the Rochester area for sale to lower-income homebuyers. The 2004 Hosanna Industries Scattered Site Rehabilitation Program involves the renovation of older, single-family homes, making necessary improvements both inside and outside. Typically one to two stories with three bedrooms, homes are modernized with energy-efficient, low-maintenance products. At least 75 of the units are earmarked for low-income homebuyers, and education and training will provide them with the means to perform regular upkeep of their property.
  
  
• $50,000 to renovate a two-building, six-unit rental facility in Freedom housing physically and mentally disabled individuals. The Freedom Rentals project will not relocate current residents, but provide them with upgraded and more energy-efficient rental units. The structures were donated to Hosanna Industries in March 2004.
  
  
• $20,000 to construct a new home in White Township for the Goosby family, including a child with autism, and to rehabilitate the Harris family home in Aliquippa. The primary focus of the project is to provide the families with a low operating cost and low maintenance. The project will benefit the community by eliminating eyesores and increasing tax revenue.

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 Buyers Equity Fund (HBEF), the FHLBank 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.

In addition, FHLBank volunteers continue to work closely with Hosanna Industries. In 2002, employees committed more than 700 hours to blitz-build two homes for low-income families in the Hill District of Pittsburgh, and Bank officer Scott A. Beers serves on the nonprofit group's board of directors.

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.