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2005 Press Release

FOR IMMEDIATE RELEASE

Contact:
Neil Cotiaux, FHLBank of Pittsburgh: 412-288-2851; cell: 412-335-9488
Emily Cunningham, state press secretary, Sen. Carper, 302-573-6457;
    cell: 302-598-4915
Kaitlin Hoffman, deputy press secretary, Rep. Castle, 302-428-1902;
    cell: 202-714-6747

CARPER, CASTLE AWARD $1.36 MILLION IN AFFORDABLE HOUSING FUNDS; LOWER-INCOME, FIRST-TIME HOMEBUYERS TO BENEFIT AT SIX DELAWARE PROJECTS

LINCOLN, DE, August 31, 2005 — U.S. Sen. Tom Carper (D-DE) and U.S. Rep. Mike Castle (R-DE) joined officials of the Federal Home Loan Bank of Pittsburgh (FHLBank) today at a growing affordable housing project in Lincoln and announced $1.36 million in grants for six such projects across Delaware. Carper is a member of the Senate Banking, Housing and Urban Affairs Committee and Castle of the House Financial Services Committee, both of which have jurisdiction over federal housing programs.

Appearing jointly at the Cedar Creek Landing Self-Help Project, Castle and Carper awarded funds to help finance the rehabilitation or construction of 61 affordable housing units in Dover, Ellendale, Seaford, Wilmington and at Cedar Creek. The projects being funded are designed to assist very-low-, low- or moderate-income, first-time homebuyers. The $1.36 million in grants are being awarded as part of the 2005 Funding Round of the FHLBank's Affordable Housing Program (AHP) and delivered to five community sponsors through four of the Bank's member institutions.

The more than $1 million announced today is part of $6.3 million in grants distributed for 38 projects in Delaware since AHP began in 1990. Over the past 15 years, 1,085 housing units in Delaware with total development costs of $104.8 million for purchase or rental, special housing needs and shelter for the homeless have been funded through this program. In addition, the FHLBank — through its Delaware members — has extended $4 million in Home Buyer Equity Fund (HBEF) grants to first-time homebuyers to assist them with down payment and closing costs.

"Affordable housing, especially for first-time homebuyers, remains a priority across Delaware," said Sen. Carper. "Thanks to the support of the Federal Home Loan Bank and its four members participating in this announcement — Citicorp Trust Bank, County Bank, Delaware National Bank and Wilmington Savings Fund Society — we continue to see to it that this critical mission is being accomplished."

"The grants we're announcing today represent part of an ongoing solution to the issues of affordability and neighborhood renewal," said Congressman Castle. "The sponsoring organizations receiving these grants are to be commended for continuing to widen access to clean, safe, affordable housing. I would also like to thank the FHLBank of Pittsburgh for offering such outstanding programs and for being so involved in the community here and throughout Delaware."

Participating in today's announcement were project sponsors Cornerstone West Community Development Corporation of Wilmington, the Dover Housing Authority, Milford Housing Development Corporation, Sussex County Habitat for Humanity of Nassau, the Latin American Community Center Development Corporation of Wilmington and United Pentacostal Church of Ellendale.

The $1.36 million in affordable housing grants announced today encompass:

• $75,000 for 15 new units at the Cedar Creek Landing Self-Help Project in Lincoln. Milford Housing Development Corporation will help first-time homebuyers achieve their dream of homeownership. To fully qualify, eligible homebuyers must commit a minimum of 20 hours a week of "sweat equity," helping to build their own home or a neighbor's. Already several dozen homes strong, Cedar Creek Landing combines several financial programs that assist very-low- to moderate-income individuals and families, including pre-construction and post-occupancy counseling, loan processing and financial management of loan accounts as well as "sweat equity" construction training and supervision. Through its programs, Cedar Creek Landing helps reduce first-year delinquency rates, and promotes sustained homeownership, neighborhood development and community stability. Partner bank: County Bank, Rehoboth Beach.
  
  
• $200,000 for the City of Dover Homeownership Initiative. This initiative will renovate ten housing units for sale to low- to moderate-income, first-time homebuyers. Eight units will have three bedrooms and two units will have four bedrooms. In addition, two of the units will be handicapped-accessible. The initiative, sponsored by the Dover Housing Authority, will also provide financing and homeownership programs, including down payment and settlement assistance programs and counseling to new and prospective homeowners. And, because many families may not qualify for traditional mortgage loans, qualified applicants may receive assistance in the form of deferred and forgivable second mortgages. Partner bank: Wilmington Savings Fund Society, FSB.
  
  
• $440,220 for Phase I of Concord Village in Seaford. At Concord Village, Sussex County Habitat for Humanity will develop ten initial housing units on fifteen 15 acres. Phase I plans include six three-bedroom and four four-bedroom homes, three of which are designated for the homeless. All ten homes are earmarked for very-low- income, first-time homebuyers. Partner bank: Delaware National Bank, Georgetown.
  
  
• $60,000 for Phase III of Las Aguilas, sponsored by the Latin American Community Center Development Corporation of Wilmington. Las Aguilas III will rehabilitate four units on North Harrison and North Van Buren streets for sale to first-time homebuyers. One home will be designated for a low-income homebuyer, three others for very-low-income purchasers. This project continues the rehabilitation of Wilmington's vacant properties and older housing stock. Homeownership at Las Aguilas represents a significant step in the direction of achieving neighborhood stability. Partner bank: Citicorp Trust Bank, FSB.
  
  
• $87,900 for Phase VIII of Cornerstone West in Wilmington. Cornerstone West Community Development Corporation will construct six new homes and renovate two existing units, located in the city's national, state or local historic districts. These eight three-bedroom properties will target low- to moderate-income, first-time homebuyers. Cornerstone West addresses blight, reduces population density and increases homeownership as part of a comprehensive program of neighborhood renewal. These efforts are intended to spur additional neighborhood reinvestment, help set the stage for future growth and encourage initiatives that focus on public safety, economic development, employment and education. Partner bank: Citicorp Trust Bank, FSB.
  
  
• $500,000 for the United Pentacostal Townhouse Complex in Ellendale. Milford Housing Development Corporation will build 14 townhomes on a 24-acre site owned by United Pentacostal Church, targeting very-low- to moderate-income, first-time homebuyers. Of these 24 acres, only two acres may be developed due to wetland restrictions. Partners engaged in this project will offer in-kind contributions to help lower overall project costs and bring about a more stable and durable housing environment. Partner bank: County Bank, Rehoboth Beach.

These six projects represent a total of $8.82 million in development costs.

The Federal Home Loan Bank of Pittsburgh, with assets of approximately $60 billion, serves nearly 340 financial institution members in Delaware, Pennsylvania and West Virginia, including 16 members with headquarters or offices in Delaware. 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.