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FOR IMMEDIATE RELEASE

Contact:

Neil Cotiaux, FHLBank of Pittsburgh: 412-288-2851; cell: 412-335-9488

FHLBANK PITTSBURGH AWARDS $6.85 MILLION IN GRANTS FOR 34 PROJECTS WITH MORE THAN 1,000 UNITS OF AFFORDABLE HOUSING ACROSS ITS DISTRICT

PITTSBURGH, PA, December 15, 2006 – The Board of Directors of FHLBank Pittsburgh has approved more than $6.85 million in grants under its Affordable Housing Program (AHP). The grants will help finance 34 housing projects across Delaware, Ohio, Pennsylvania and West Virginia, creating 1,017 units of housing with total development costs of more than $116 million.

“As we close the books on 2006, we are again pleased to extend assistance to very-low-, low- and moderate-income individuals and families including homeless, children, frail elderly and the physically and mentally disabled through our popular Affordable Housing Program,” said John R. Price, FHLBank Pittsburgh’s president and chief executive officer. “AHP is one of the cornerstones of our mission. Through it, we continue to help our financial institution members and their partners build sustainable communities.”

FHLBank Pittsburgh awarded $7.8 million in AHP funds during this year’s first round, bringing total AHP grants awarded in 2006 to approximately $14.7 million. In the just-completed funding round, the Bank awarded $340,000 for two projects in Delaware, $500,000 for one project in Ohio, $4.8 million for 25 projects in Pennsylvania and $1.2 million for six projects in West Virginia. As in prior years, the total AHP allocation in 2006 will equal ten percent of the Bank’s net income.

FHLBank Pittsburgh, a wholesale bank using private capital, not taxpayer funds, distributes AHP dollars through its member financial institutions to community sponsors and project developers. With today’s announcement, the Bank has awarded approximately $125 million to build or rehabilitate more than 22,000 affordable housing units since the start of the AHP in 1990 – empowering families and improving neighborhoods.

This year, the Bank judged grant applications on a set of scoring criteria that included providing opportunities for first-time homebuyers and individuals with special needs, serving the very-low-income, offering large-family rental opportunities, operating cost-efficiently and promoting community stability. Other scoring factors used in 2006 included housing that serves the homeless, low subsidy costs per unit and the use of donated properties.

For a complete list of grants awarded in the just-completed AHP funding round, please click here.

With assets of approximately $78.3 billion, FHLBank Pittsburgh, a government-sponsored enterprise created by Congress in 1932, serves 334 members across its three-state district of Delaware, Pennsylvania and West Virginia. It is one of twelve FHLBanks, all cooperatively owned banks established to provide a steady stream of low-cost housing finance. More recently, the Bank’s mission has been expanded to include financing for business startup and expansion as well as a variety of community and economic development needs.