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2005 Press Release

Contact:
Neil Cotiaux, FHLBank of Pittsburgh: 412-288-2851; cell: 412-335-9488
Kristen Vanderpool, deputy press secretary, U.S. Sen. Rick Santorum,
    412-562-0533
Derek Karchner, communications director, U.S. Rep. Joe Pitts,
    202-225-2411
Maria Ream, Water Street Rescue Mission, 717-393-7709, ext. 227

SANTORUM, PITTS, FHLBANK ANNOUNCE $1.08 MILLION FOR THREE SOUTHCENTRAL PENNSYLVANIA PROJECTS; WATER STREET RESCUE MISSION OF LANCASTER, CELEBRATING CENTENNIAL, RECEIVES $500,000 FOR COMPREHENSIVE OVERHAUL

LANCASTER, PA, September 16, 2005 — U.S. Sen. Rick Santorum
(R-PA), U.S. Rep. Joe Pitts (R-PA-16) and William G. Batz, executive vice president and chief operating officer of the Federal Home Loan Bank of Pittsburgh (FHLBank), today announced $1.08 million in grants for three affordable housing projects in southcentral Pennsylvania. The grants include a half-million-dollar award toward a comprehensive renovation of Lancaster's historic Water Street Rescue Mission, designed to meet the needs of its residents for the next 20 years.

At a ceremony held in the mission's chapel, Santorum, Pitts and Batz presented $500,000 in FHLBank grant money for the renovation or construction of onsite housing to serve a total of 85 clients consisting of single men and parents caring for children. The project, which includes the construction of larger family units, represents the biggest single facelift at Water Street since 1987 and reflects a growing demand for its services across Lancaster County, especially among homeless families.

"I am pleased to join the FHLBank of Pittsburgh and Congressman Pitts to announce more than $1 million in grants for affordable housing projects in central Pennsylvania," said Sen. Santorum. "The Water Street Rescue Mission is an excellent investment and the FHLBank has once again been a reliable partner for providing financial help and services to communities throughout Pennsylvania. As a member of the committee that has jurisdiction over affordable housing, and as a member of the Senate leadership, this news is a welcome gift to those who are in need of safe and affordable housing."

"Water Street Rescue Mission is an anchor for Lancaster, a light in the darkness for so many in need in our area," said Congressman Pitts. "I've been honored to work with the wonderful people who run the mission.

"This funding is an important investment in our community and in the faith-based heroes who serve it," the congressman continued. "It's a long-overdue recognition that faith-based groups offer more and do more than any government program on its own. They change lives and offer hope."

In addition to upgrading its living quarters, the 100-year-old mission will install central air conditioning in its dormitories, move and enlarge its medical and dental clinic, convert existing clinic space to office and classroom use, and expand a career center that provides instruction in math, writing and computer skills. Project completion is expected by mid-2007. The nondenominational mission, located at 210 South Prince Street, also provides free meals, thrift goods, youth ministries and Bible studies. Approximately 200 people reside at the mission at any given time.

In the wake of Hurricane Katrina, the mission has provided approximately two weeks' worth of food to 34 evacuees who relocated to the Lancaster area. And, as a result of donations from members of the community, it has shared more than 30,000 pounds of food as well as water, trucked to relief organizations along the Gulf Coast.

"This funding is most welcome and comes at a significant time in the life of our facility," said Jere Shertzer, president of Water Street Rescue Mission. "It allows us to more fully meet the needs of a growing clientele. We sincerely appreciate the FHLBank of Pittsburgh's understanding of our community mission and our elected representatives' strong and tireless support of affordable housing for the homeless."

FHLBank member Bank of Lancaster County is distributing the affordable housing funds for the Water Street project.

Affordable housing for Hanover, Mechanicsburg

In addition to the half-million dollars bestowed on Water Street, the FHLBank awarded an additional $580,000 for the construction of 83 new units of affordable housing elsewhere in southcentral Pennsylvania.

A $190,000 grant will help fund development of a new Section 202 apartment building for income-eligible older persons in the Hanover area of western York County. Lutheran Social Services of South Central Pennsylvania, in conjunction with A+E Group, an architectural firm based in Wilkes-Barre, will create a new three-story, Section 202 apartment building to house 19 very-low-income families.

The project will be part of a 45-acre continuing care retirement community, which is planned to include a skilled-care center offering long-term rehabilitation and nursing care to 40 individuals, a 46-bed assisted-living residence to help foster residents' self-reliance, 76 two-bedroom townhomes and 98 apartments. This continuum-of-care community in West Manheim Township represents the focus of Lutheran Social Services in the area over the next decade. FHLBank member Sovereign Bank is distributing funding.

$390,000 was awarded for construction of 64 units at Geneva Green Apartments in Mechanicsburg. The Cumberland County Housing and Redevelopment Authority, sponsor of the project, will locate the rental units within eight apartment buildings and also create a community building. Thirty-one two-bedroom and 33 three-bedroom units will contain Energy Star® appliances, and 13 units will be completely handicapped-accessible. All units are designated for very-low- and low-income individuals and families in Cumberland County.

Geneva Green's community building will contain a community room, kitchen, laundry, office space and an outside "tot lot." The new facility will complement the design of apartments and condominiums already lining Geneva Drive and blend seamlessly into the existing neighborhood. Amenities within 1.5 miles include schools, parks, health care facilities, grocery stores and retail establishments. Two bus stops are within a few hundred feet of the proposed entrance. FHLBank member PNC Bank is distributing funding.

Ongoing need

"In the aftermath of Hurricane Katrina, we have again been reminded of the severe challenges that life can present," said the FHLBank's Batz in announcing today's grants. "While Katrina's force devastated millions with a single blow and captured the headlines, we should remember that there are countless others all across our country who seek decent shelter, basic nutrition, adequate health care and the opportunity for a better future on a daily basis. We salute Water Street Rescue Mission, Lutheran Social Services and the Cumberland County Housing and Redevelopment Authority for their sustained efforts in helping to meet these critical needs."

Created by Congress in 1932, 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. It is one of twelve FHLBanks, all private cooperatively owned banks utilizing private capital to provide wholesale housing finance, community lending and related services to member banks, savings institutions, credit unions and insurance companies.