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FOR IMMEDIATE RELEASE

Contact: Emily Cunningham, district press secretary, U.S. Sen. Thomas Carper,
302-573-6460;

Kaitlin Hoffman, deputy press secretary, U.S. Rep. Michael Castle,
202-225-4165,

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

CARPER, CASTLE ANNOUNCE $1.1 MILLION IN AFFORDABLE HOUSING GRANTS
Six lower-income projects funded in Wilmington, Claymont and Seaford

DOVER, DE, February 22, 2007 – U.S. Sen. Thomas Carper (D-DE) and U.S. Rep. Michael Castle (R-DE) announced today that the Federal Home Loan Bank of Pittsburgh (FHLBank Pittsburgh) has approved more than $1.1 million in grants under its Affordable Housing Program (AHP) for six lower-income housing projects in Wilmington, Claymont and Seaford. The announcement was made at Owens Manor, a housing development for the elderly on South New Street in Dover managed by the Dover Housing Authority. Today’s event was attended by elected officials, affordable housing advocates, bankers, builders and REALTORS.

Today’s announcement brings to more than $6.68 million the total amount of AHP grants that FHLBank has delivered to sponsors of lower-income housing in the First State. More than 1,000 units of affordable housing have received funding since the AHP was inaugurated in 1990.

“Quality affordable housing remains one of my foremost priorities,” said Sen. Carper, who spoke at today’s event. “As the median price of housing continues to rise in Delaware and across the country, we must accelerate our efforts to increase the stock of housing that is financially accessible to all citizens, especially those of modest means.” Carper sits on the Senate Banking Committee.

“Today’s announcement provides needed assistance to Delawareans who deserve quality, affordable housing, an issue to which I remain committed in the House of Representatives,” said Congressman Castle, a member of the House Financial Services Committee which has jurisdiction over housing issues. “I would like to thank the Federal Home Loan Bank of Pittsburgh for their continued generosity toward Delaware. Together, we can address this problem with adequate funding and real solutions, which we see today.”

Funds will be released to the following Delaware projects:

Concord Village–Phase II - $240,000
Seaford, DE
Lender: Delaware National Bank, Georgetown, DE
Sponsor: Habitat for Humanity – Sussex County, Georgetown, DE
Total units: 4

On 15 acres near Seaford, the Concord Village–Phase II project will build four more units toward a goal of 19 homes in this subdivision. These four units will be reserved for first-time homebuyers, with two units being three-bedroom, two being four-bedroom and one unit reserved for the homeless. Families are selected on the basis of need and ability to pay monthly mortgages of $350 to $450 per month. Homeowner candidates invest sweat equity and pay for their homes through no-interest, no-profit mortgages. This will be the first subdivision developed by Sussex County Habitat for Humanity in conjunction with partner families. Volunteers, builders, churches and local businesses will also provide support.

Cornerstone West Phase IX - $103,998
Wilmington, DE
Lender: Citizens Bank, Wilmington, DE
Sponsor: Cornerstone West Community Development Corporation, Wilmington, DE
Total units: 7

Wilmington's Hilltop neighborhood has begun to experience the benefits of collaborative community development efforts. The Cornerstone West Phase IX project will build and rehabilitate a total of seven homes. Two homes may require demolition and new construction. The remaining five properties will be rehabilitated. At least two homes will be subject to potential historical reviews. These properties will become affordable homes for low- to moderate-income first-time homebuyers. This scattered-site infill project will add to existing community development efforts through the rehabilitation of blighted or vacant properties, adaptive reuse of highly visible blighted-corner properties, increased affordable homeownership and strategies to sustain the positive effects of neighborhood revitalization.

Hilltop STAR Homeownership - $120,000
Wilmington, DE
Lender: Citicorp Trust Bank, FSB, Newark, DE
Sponsor: Interfaith Housing Delaware, Inc., Wilmington, DE
Total units: 8

In Wilmington, the Hilltop STAR Homeownership project will acquire eight vacant housing units for single-family homeownership development along North Connell, North Harrison, North Van Buren, West 2nd and West 4th streets. All units will target very-low- to moderate-income, first-time homebuyers. One long-vacant commercial property unsuitable for residential development will be demolished. The other properties comprise a semi-detached home and row townhouses to be rehabilitated. Specifications for all units include three or four bedrooms and one or two baths; new roofs; new electrical, mechanical and plumbing systems as required by code; new HVAC; new kitchens and bathrooms including fixtures and appliances; and off-street parking where possible.

New Knollwood Community Revitalization Project Phase II - $50,000
Claymont, DE
Lender: PNC Bank, Pittsburgh, PA
Sponsors: New Knollwood Civic Association, Claymont, DE; NCALL Research, Inc., Dover, DE
Total units: 5

In New Castle County, Phase II of the New Knollwood Community Revitalization Project will acquire and rehabilitate five vacant housing units for sale to first-time homebuyers. Of the five units, all located in Claymont, three will be sold to moderate-income, first-time homebuyers and two will target the very-low-income. The three-bedroom, two-story townhouses and four-bedroom two-story twins will contain Energy Star® appliances, with air conditioning to be added. The homes will be in Claymont's Knollwood neighborhood, an established community convenient to grocery stores, banks, a post office, restaurants, day care facilities, churches, a senior center and public transportation. Knollwood also features a community center, basketball court, baseball field, playground and a strong, well-organized civic association.

Southbridge Homeownership - $100,000
Wilmington, DE
Lender: Citicorp Trust Bank, FSB, Newark, DE
Sponsor: Interfaith Housing Delaware, Inc., Wilmington, DE
Total units: 10

Southbridge Homeownership, part of the South Wilmington Neighborhood Plan, will develop ten three-bedroom units. The neighborhood plan aims to “strengthen the area’s tight-knit sense of community with greater homeownership.” The homes in development will be located along B and Townsend streets within Wilmington’s core residential district. The development will help reduce the number of vacant lots and complement historical structures in the neighborhood. Southbridge is also one of the Strategically Targeted Areas for Revitalization (STARs) in Wilmington’s Consolidated Plan, which includes support of affordable housing.

Speakman Place - $500,000
Wilmington, DE
Lender: Citicorp Trust Bank, FSB, Newark, DE
Sponsors: Cornerstone West Community Development Corporation, Wilmington, DE; Ingerman Group, Cherry Hill, NJ
Total units: 18

At 30th and Spruce streets in Wilmington, the former Speakman Company factory site will be redeveloped into Speakman Place Phase I Affordable, offering 18 new-construction homes targeting moderate- and very-low-income first-time homebuyers. The project will provide residents with first-time-homeowner counseling, down payment and closing cost assistance and access to preferential mortgage financing. Each unit will boast a spacious three-bedroom and 2½- bath interior with amenities (open living space, ceramic tile baths, energy-efficient systems, wall-to-wall carpet, wood trim and fully equipped kitchens with Energy Star® appliances), a high-quality exterior, extensive landscaping and private rear yard. The site design will showcase panoramic views of the Wilmington skyline and Delaware Memorial Bridge. Homebuyers may also upgrade and customize their homes before completion. When this four-phase project is completed, Speakman Place will comprise 71 lower-income and market-rate housing units.

Delaware Board members involved

“We are pleased to extend assistance to very-low-, low- and moderate-income individuals and families through the AHP,” said David Buches, manager of Community Investment at FHLBank, who attended today’s event. “AHP is one of the cornerstones of our mission. Through it, we continue to help our financial institution members and partners build sustainable communities.” Annual AHP grants equal ten percent of the Bank’s net income.

The $1.11 million in AHP funding announced today was the result of action by FHLBank Pittsburgh’s Board of Directors. Marvin N. Schoenhals, chairman, president and chief executive officer of Wilmington Savings Fund Society, is the Board’s Chairman. In addition, three other First Staters hold seats on the Board: Basil R. Battaglia, owner, Beckworth Title Company; David W. Curtis, director, Citizens Bank, DE; and David R. Gibson, executive vice president and chief financial officer, Wilmington Trust Company.
In addition to the AHP, FHLBank has released more than $4.2 million in grants to 1,016 lower-income first-time homebuyers in Delaware through its popular First Front Door program. First Front Door provides matching grants to help those with limited incomes meet down payment and closing costs.
With assets of approximately $74.4 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 uses private capital, not taxpayer dollars, in pursuit of its mission of affordable housing and community and economic development.