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FOR RELEASE: 2 p.m., August 23, 2006

Contact:
Neil Cotiaux, FHLBank of Pittsburgh: 412-288-2851; cell: 412-335-9488
Randy King, Assistant to the Mayor: 717-255-3040

MAYOR REED, FIVE BANKS UNVEIL $1.4 MILLION IN FUNDING FOR FIVE AFFORDABLE HOUSING PROJECTS IN HARRISBURG AND VICINITY

HARRISBURG, PA, August 23, 2006 — Harrisburg Mayor Stephen R. Reed and five area banks today announced the release of $1.4 million in grants to help fund five affordable housing projects in Harrisburg and southcentral Pennsylvania.

At a check presentation ceremony in the Atrium of City Hall, the mayor and representatives of Citizens Bank of Pennsylvania, CommunityBanks, Farmers & Merchants Trust Company, Fulton Bank and Sovereign Bank announced funding to help create 170 units of affordable housing for low- and very-low-income individuals, including victims of domestic abuse, the physically disabled, mentally impaired and individuals who are recovering from alcohol and drug addiction.

The 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 private 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 approximately 21,000 units of affordable housing for purchase or rental.

"The grants we're announcing today provide affordable shelter for a broad range of community stakeholders in need of both affordable housing and social services assistance," said Mayor Reed, featured speaker at the ceremony. "These grants not only place a roof over the heads of our most vulnerable citizens, but also allow them to better address their personal needs and become more active members of the community.

"Nearly half of the $1.4 million we announce today goes directly to two significant projects in our city that will provide safe shelter for the homeless as well as a stronger stock of housing sponsored by Habitat for Humanity," the mayor continued. "In all, 70 new units of housing will be built for the homeless and first-time homebuyers, part of the ever-increasing revitalization of our city."

Projects and amounts

The $1.4 million in affordable housing grants announced today will go to the following projects in these amounts:

• $500,000 for 65 units of rental housing at Susquehanna Harbor Safe Haven, a two-story twin-service facility set for North 12th Street in Downtown Harrisburg. A project of the Harrisburg Redevelopment Authority and Mullin and Lonergan Associates, Susquehanna Harbor Safe Haven will redevelop blighted, abandoned property, relocate an overnight shelter, provide safe housing for the homeless and enhance the safety of city neighborhoods. Twenty-five permanent housing units will serve homeless individuals with mental disabilities or who are recovering from drug or alcohol addiction. The project will also create space for 40 overnight beds, moving a program currently operating out of church basements. Facility features will include a laundry, cafeteria-style dining, a medical dispensary, a courtyard and onsite parking. In addition, energy-efficient design and systems will minimize operating costs. Employment opportunities are located within walking distance of the planned center, with Susquehanna Harbor providing transportation if needed. Bank: Citizens Bank of Pennsylvania.
  
  
• $100,000 for five new homes at Habitat for Humanity's Development Project One in Harrisburg's South Allison Hill area. Very low- to moderate-income homebuyers have been chosen for all homes based on Habitat criteria, which include the requirement of sweat equity by all prospective purchasers. One home will have three bedrooms and be completely handicapped-accessible. Three other homes will also features three bedrooms, and one will house four bedrooms, and these four will be handicapped-visitable. Habitat has been building in the South Allison Hill area for ten years. Bank: Sovereign Bank.
  
  
• $90,000 for Single Room Occupancy for the Homeless in Enola, PA. A former church and parsonage in East Pennsboro Township will be transformed into six single-room affordable rental units for very-low-income homeless individuals in Cumberland County. Upon admittance, residents will undergo a comprehensive needs assessment to identify issues to be addressed by case management leading to individualized social support services. The five efficiency apartments and one one-bedroom apartment to be created will be close to a grocery store, laundromat, post office, bank, community center, pharmacy and public transportation. Sponsor: Cumberland/Perry County Initiatives, Inc. Bank: CommunityBanks, Carlisle, PA.
  
  
• $315,000 for Chambersburg Family Townhomes to build 45 lease-purchase townhomes serving low-income homebuyers in Chambersburg Borough. The project, totaling 11 acres near Buchanan Road, will comprise nine two-bedroom, 23 three-bedroom and 13 four-bedroom units. Six will serve the physically disabled while three will accommodate residents with a mental health issue or women who are victims of domestic abuse. Thirty-four units will include accessibility features such as wheelchair ramps and 36-inch passageways. Each home will feature energy-efficient building materials and appliances, central air conditioning and porches or patios. Sponsors: PIRHL, LLC and Valley Housing Development Corporation. Bank: Farmers & Merchants Trust Company.
  
  
• $400,000 for 50 townhomes within the Lancaster Homeownership Choice Program on properties along Palm, South Plum and South Duke streets and Juniata Avenue. The sites currently consist of vacant, condemned or blighted properties. Forty-three homes will be new construction and seven existing but vacant homes will be rehabilitated. Twenty of the homes will be open to first-time homebuyers. Units will be one of four housing types: a two-story townhouse with three bedrooms and two baths, a two-story townhouse with two bedrooms and one bath, a carriage house with three bedrooms, two baths and garage, or an accessible/adaptable unit with three bedrooms and two baths. Four units will accommodate the physically handicapped. Sponsor: SACA Development Corporation. Bank: Fulton Bank.

Special Award

In addition to announcing more than $1.4 million in housing grants, the mayor joined William F. Joseph, Community Investment consultant at FHLBank Pittsburgh, in bestowing FHLBank's annual Pillars of the Community Award on Pennsylvania State Bank of Camp Hill for outstanding community service during 2005 (see accompanying release). Pennsylvania State 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. Mayor Reed presented a Special Citation from the City of Harrisburg to Pennsylvania State Bank in recognition of the award.

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.