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FOR RELEASE: 11 a.m., August 24, 2006

Contact:
Neil Cotiaux, FHLBank of Pittsburgh: 412-288-2851; cell: 412-335-9488
John Gentzel, Congressman Gerlach: 202-225-4315

GERLACH ANNOUNCES $500,000 MORE FOR 'OUR CITY READING': 100 ADDITIONAL FIRST-TIME HOMEBUYERS TO BENEFIT ALONG AMITY, MCKNIGHT

READING, PA, August 24, 2006 — U.S. Rep. Jim Gerlach (PA-6), officials of Our City Reading and representatives of Sovereign Bank today announced another one-half-million-dollar grant for the city's cornerstone revitalization project, clearing the way for homeownership opportunities for another 100 first-time homebuyers.

At an announcement at Our City Reading's latest successful renovation project on North 5th Street, Congressman Gerlach, flanked by John Connelly, president of the ever-growing program, announced that Sovereign Bank will deliver another $500,000 check to Our City Reading, bringing to $1 million the total amount of grants extended to the ambitious program through Sovereign by FHLBank Pittsburgh, part of the Federal Home Loan Bank System.

FHLBank Pittsburgh's previous one-half-million-dollar grant through Sovereign Bank helped fund the renovation of 125 housing units.

The 100 new homebuying opportunities being created involve purchasing and restoring vacant and abandoned homes along Amity and McKnight streets. The restored homes will boast new kitchens, bathrooms, roofs, windows, heating systems, lighting, plastering and painting, carpeting and appliances.

Once completed, these upgraded homes will be made available for sale to very low- to moderate-income first-time homebuyers. Eligible buyers must demonstrate an acceptable credit rating and at least a one-year employment history. A minimum $500 down payment will be required, but closing costs will be waived. Special attention will be given to assisting single parents who are making the transition from welfare to work. An Open House was held at today's announcement site — a spacious, renovated six-bedroom home at 722 N. 5th Street — to pique buyer interest. A backyard barbeque followed the formal grant announcement.

"Our City Reading is creating perhaps the single biggest turnaround story in Downtown Reading's recent history," remarked Congressman Gerlach. "Our success is testament to the great things that can happen when the public sector, private business and nonprofit world pull together." Added Our City Reading President Connelly, a former chairman of the board of FHLBank Pittsburgh: "We've come an extremely long way in a very short time."

Of more than 300 properties that Our City Reading has purchased to date, more than 220 have been sold, 15 are currently for sale, 17 have been or will be demolished and 60 are being rehabilitated. The goal of the group is to renovate at least 100 homes per year.

Al Boscov, founder and chair of Our City Reading and former chairman of Boscov's Department Stores, a speaker at today's event, emphasized that the original mission of the organization not only remains, but is gaining momentum.

"We have been highly successful in transforming unused eyesores into sights to behold, and the pace of our progress is picking up," Boscov said. "We are giving new life to old properties and fresh hope to hundreds of families."

Also participating in today's grant presentation and Open House were representatives of Sovereign Bank, FHLBank Pittsburgh and a variety of community stakeholders.

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.