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FOR RELEASE: 11 a.m.

Contact:
Ron Goldwyn, deputy communications director, Rep. Fattah: 215-387-6404, cell: 215-913-0972;
Neil Cotiaux, FHLBank Pittsburgh, 412-288-2851, cell: 412-335-9488

REP. FATTAH, REV. CORTÉS, FIVE BANKS UNVEIL $3 MILLION IN FUNDING FOR EIGHT AFFORDABLE HOUSING PROJECTS IN PHILADELPHIA, SURROUNDING AREAS

PHILADELPHIA, PA, August 16, 2006 — U.S. Rep. Chaka Fattah (PA-2), the Rev. Luis Cortés Jr., president of Esperanza USA and five banks today announced the release of $3 million in grants to help fund eight affordable housing projects in Philadelphia, Chester, PA and Lindenwold, NJ.

Congressman Fattah, Gloria Guard, president of People's Emergency Center (PEC), Rev. Cortés and representatives of Citizens Bank of Pennsylvania, Commerce Bank, Firstrust Bank, PNC Bank and Sovereign Bank held a check presentation ceremony in Saunders Park adjacent to PEC's Rowan House to award the grants. The funding will help create 230 units of affordable housing for low- and very-low-income individuals and families including young homeless mothers and their children, men and women who are recovering from alcohol and drug addiction, the physically handicapped, those suffering from mental illness and seniors, including frail elderly.

The $3 million in grants announced today were approved during the latest funding round conducted by FHLBank Pittsburgh, part of the Federal Home Loan Bank System. FHLBank provides grants and low-cost funding for affordable housing and community development to the members of its cooperative, including the five local banks present at today's event. Since 1990, the Bank has awarded more than $118 million in AHP funds, creating 21,000 units of affordable housing for purchase or rental.

"These grants bring the total for Philadelphia to more than 150 projects and 4,700 units of affordable housing since this program began," said Congressman Fattah, featured speaker at the ceremony and a member of the VA-HUD Subcommittee of the House Appropriations Committee. "I'm proud of the partnership between the Federal Home Loan Bank of Pittsburgh and the Fattah congressional office for the role we have played in revitalizing neighborhoods throughout Philadelphia and the region.

"Walk almost any neighborhood in Philadelphia and see the proof," Fattah said. "These housing programs have been a critical linchpin to provide affordable housing for low-income families, for the elderly and for those with special needs."

"Safe, accessible housing remains a critical priority across Philadelphia and our region," said Cortés, who in addition to heading Esperanza USA serves as an advisor to FHLBank's Board of Directors. "Thanks to the support of Congressman Fattah and our five participating member banks — Citizens Bank, Commerce Bank, Firstrust Bank, PNC Bank and Sovereign Bank — we continue to see to it that this critical mission is accomplished."

Projects and amounts

The $3 million in affordable housing grants will go to the following projects in these amounts:

• $70,000 for six units of rental housing at Bernice Elza Homes at 38th and Brandywine streets. The units will provide shelter to teen mothers and their children. The project will combine permanent housing with supportive services — substance abuse treatment, parenting education, child care, home management training, GED preparation, pre-employment job training and placement, and transportation — to help these families achieve self-sufficiency. Project Sponsor: PEC Community Development Corporation. Bank: Citizens Bank of Pennsylvania.
  
  
• $350,000 for ten rental units at Gaudenzia New Hope on West Tioga Street. New Hope will renovate adjoining three-story rowhouses, making repairs to interior units, the roof, HVAC, plumbing and electrical systems to lower operating costs, improve energy efficiency and improve residents' safety and comfort. Sponsors: Gaudenzia Foundation and Sherick Project Management. Bank: Sovereign Bank.
  
  
• $1.35 million for Harvest Senior Housing in Lindenwold, NJ. On the Abundant Harvest Ministries campus, Harvest Senior Housing will develop a 92-unit, three-story apartment building for very-low-income seniors. It will include 74 one-bedroom apartments and 18 two-bedroom apartments. One-quarter of all units will be reserved for frail elderly. The building will feature a community room, craft and game room, medical suite and other amenities. Sponsors: Generations, Inc. and The Metro Company. Banks: Commerce Bank, PNC Bank ($850,000 in funding through the Federal Home Loan Bank of New York; $500,000 through FHLBank Pittsburgh).
  
  
• $105,000 for Mantua I Supported Independent Living for ten one-bedroom rental units for very-low-income individuals. One unit will serve the physically handicapped and two, the homeless. Residents coping with a physical disability will be evaluated for their ability to live independently. In addition, individuals suffering from mental illness will be provided with a comprehensive set of services offered by mental health agencies across Philadelphia. Sponsor: 1260 Housing Development Corporation. Bank: Firstrust Bank.
  
  
• $369,722 for 24 units serving homeless adult men recovering from drug- and alcohol-related addictions, at St. Elizabeth's Recovery Residence in northcentral Philadelphia. The four-story residence on North Croskey Street will undergo significant renovations, in part responding to a request from the Veterans Administration that twelve single-room-occupancy units be dedicated for veterans, four of them handicapped-accessible. Renovations will include adding an elevator to make the facility completely accessible. The sponsor, Project H.O.M.E., plans to purchase the building from the Archdiocese of Philadelphia and continue expanding services to veterans and the physically handicapped homeless. Sponsor: Project H.O.M.E. Bank: PNC Bank.
  
  
• $150,000 to rehabilitate eleven vacant properties in north Philadelphia's Allegheny West neighborhood into ten new homes for very-low- to moderate-income first-time homebuyers. Stable Homes for Stable Families IV is part of Allegheny West Foundation's Forgotten Blocks redevelopment plan, a strategy that targets a six-block neighborhood for renewal. When completed, Forgotten Blocks will have significantly improved the neighborhood by removing and replacing 66 vacant sites with 47 units of housing for low-income residents and adding four sites for commercial use. Sponsor: Allegheny West Foundation. Bank: PNC Bank.
  
  
• $450,000 for 30 semi-detached single-family homes for moderate-income first-time homebuyers in the Wellington Heights neighborhood of Chester. The project will demolish 100 deteriorated residential structures dating from the 1940s for this new construction. Homebuyers will be allowed to purchase upgrades and options to customize their homes, similar to other new market-rate homeownership developments. This project is a key to Chester's Upper West End Initiative, begun in 1988. Sponsor: Chester Redevelopment Authority. Bank: Sovereign Bank.
  
  
• $260,000 for 48 rental units in West Powelton Village to be built on vacant land along Warren Street. The four-story building will contain one-bedroom units, ten of them serving homeless individuals with serious mental illness, 14 serving non-homeless with mental illness, twelve, individuals with physical disabilities and twelve for general occupancy. All units are dedicated to very-low-income residents. Residents with physical disabilities will be supported by an individualized service program while those with serious mental illness will receive a comprehensive set of services offered by area mental health agencies. Sponsor: 1260 Housing Development Corporation. Bank: Firstrust Bank.

Special Award

In addition to announcing more than $3 million in housing grants, Congressman Fattah joined FHLBank Pittsburgh in bestowing its annual Pillars of the Community Award on Commerce Bank for outstanding community service during 2005 (see accompanying release). Commerce Bank is one of only four banks across Delaware, Pennsylvania and West Virginia chosen to receive the prestigious award, which is based on a financial institution's overall commitment to affordable housing, community and economic development and charitable contributions in a given year.

The Federal Home Loan Bank of Pittsburgh (FHLBank Pittsburgh) is a wholesale bank that serves the housing finance and community and economic development needs of its owner-members. The Bank provides reliable access to low-cost funds, competitive pricing in the purchase of mortgage loans, correspondent banking, technical assistance, affordable housing grants and other programs so members can better serve their own communities. The Bank is privately capitalized and funded, does not use taxpayer dollars, and enjoys a triple-A rating. It currently has 334 members in its district of Delaware, Pennsylvania and West Virginia and approximately $74.7 billion in assets. FHLBank Pittsburgh is one of twelve Banks in the Federal Home Loan Bank System, established by Congress in 1932 to support the residential mortgage activities of local financial institutions.