Community Success Stories

1,000th BOB Loan Supports Woman-owned Fresh Produce Small Business

The Pittsburgh Juice Company was first opened in February 2014 in a historic art deco building overlooking Doughboy Square in Lower Lawrenceville. With a successful first location, company owner and founder, Naomi Hoppel was looking for a way to continue the growth of her business.

Hoppel faced challenges common to many small businesses including staffing, inventory management and limited access to capital. Despite these challenges, as well as ones that impact a fresh, organic fruit business uniquely, her vision for a fresh food and community destination kept Hoppel moving forward.

Next to the City of Pittsburgh, the former farmer's market in Aspinwall was purchased by Hoppel in April 2023 and would double as a cafe and new production area. The new location, Vibrant Sunshine Juicery Cafe, would be dedicated to “promoting happiness, wellness and sustainability through delicious grab-and-go foods and juices,” said Hoppel. “And the high traffic area allows convenient access to fresh food with plant-forward options.”

The Pittsburgh Juice Company acquired a business loan from Enterprise Bank, an FHLBank Pittsburgh (FHLBank) member. Additional financing was still needed to make this project possible; so, Enterprise Bank helped them access an FHLBank Banking On Business (BOB) loan. The BOB program, which offers secondary financing, can help to fill the financing gap between what a qualified small business needs and what a member financial institution is willing to lend.

In discussing the loan for this small business, Chuck Leyh, President and CEO of Enterprise Bank said, “Enterprise Bank is committed to helping small businesses serve communities and FHLBank Pittsburgh is an essential partner in that mission. We look forward to watching The Pittsburgh Juice Company thrive.”

The Pittsburgh Juice Company application became FHLBank’s 1,000th BOB loan to be funded and utilized the Banking On Business Inclusion and Equity fund (BOBIE). “BOBIE is a specific type of BOB loan which was established as a special purpose credit program that offers flexible terms that are favorable to minority- and women-owned small business borrowers,” said Julie Francis, product manager for the program. “Through the support of our members, FHLBank is able to provide additional funding to empower small businesses and create a positive economic impact on the areas our members serve.”

“This newest location marks an important step forward for The Pittsburgh Juice Company and Vibrant Sunshine,” said Hoppel. “The expanded retail space and production capacity will have a profound impact on our operations and enable us to grow to our full potential with expanded menu offerings and jobs created in our community. We are grateful for the support we have received throughout this expansion and for the opportunity to serve the Aspinwall community. We are so excited for the future!”

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About The Pittsburgh Juice Company

At The Pittsburgh Juice Company (affectionately known as “PJC”), the goal is to provide a product that makes you feel good and that you can feel good about. They believe in sustainability and the importance of wholesome, unprocessed, plant-based foods. In this woman-owned, family business, waste is minimal while ingredients are organic and seasonally local; all making for happy bodies and for a happy earth. Their new endeavor Vibrant Sunshine Juicery Cafe is a plant-forward cafe dedicated to promoting happiness, wellness and sustainability through nutritious grab-and-go foods and drinks.

About Enterprise Bank

Enterprise Bank opened its doors for business in October 1998. Since that day, our focus has been on providing the region with a bank that addresses the particular needs of entrepreneurs, startups, expanding businesses, and businesses in distress. It is our conviction that every business deserves the chance to start, grow and succeed. Enterprise Bank strives to bring an entrepreneurial spirit to the traditional commercial banking industry.

About FHLBank Pittsburgh

FHLBank Pittsburgh provides reliable funding and liquidity to its member financial institutions, which include commercial and savings banks, community development financial institutions, credit unions and insurance companies in Delaware, Pennsylvania and West Virginia. FHLBank products and resources help support community lending, housing and economic development. As one of 11 Federal Home Loan Banks established by Congress, FHLBank has been an integral and reliable part of the financial system since 1932. Learn more by visiting www.fhlb-pgh.com.

S&T Bank Uses Affordable Housing Program (AHP) Grant to Support Sellersville Seniors

Sellersville is a small rural community with an industrial past. The town of 4,500 is an active, revitalized community, north of Philadelphia, with a healthy mix of shops and restaurants, small businesses and cultural amenities, along with an attractive residential area for those working in the surrounding urban centers. According to Dan McKee, President and CEO of Grace Inspired Ministries (GIM), Sellersville is also "an area with a growing cost of living and a very limited supply of high-quality, cost-effective rental housing for seniors and people with cognitive differences.”

As a regional bank operating for more than 120 years, S&T Bank knows the financial needs of the community well. Recognizing the lack of affordable senior living developments, S&T Bank, a member of FHLBank Pittsburgh (FHLBank), applied for an Affordable Housing Program (AHP) grant. Together with GIM, which runs two life plan communities, S&T Bank partnered with affordable housing developer Leon N. Weiner & Associates (LNWA), and others, on this community project.

Finding the right mix of funding is critical for the success of any affordable housing project. LNWA Development Coordinator Beau Jones explains, “Affordable housing projects are not like market-rate projects where you can easily find equity. Rents are not the same as market-rate housing, so you have to find funding that will enable affordable rents.” For the $17.1 million Sellersville Senior Residences, that mix of funding included Low-Income Housing Tax Credits and a low-interest mortgage from the Pennsylvania Housing Finance Agency; Bucks County community reinvestment capital, including financing from the county’s redevelopment authority; and a $405,000 AHP grant from FHLBank. In addition to its participation in obtaining the project’s AHP grant, S&T Bank provided a competitively priced construction loan.

In 2018, as ongoing preparations were being made, GIM acquired the property – an abandoned parking lot identified as a brownfield – and in partnership with LNWA, began the pre-construction work.

Sellersville Senior Residences is now an affordable and supportive housing community with 50 apartments: 42 one-bedroom units for residents aged 55 and older, and eight two-bedroom units for adults of all ages with behavioral health needs. All the apartments are Americans with Disabilities Act adaptable and built to the highest energy efficiency standards defined by the U.S. Department of Energy Zero Energy Ready Home program. Rents are based on household income and affordable to households with incomes ranging from 20% to 60% of area median income.

Underscoring the area’s need for affordable senior housing, the apartments were fully leased after only 60 days of their initial availability in April 2022, and the waitlist currently extends past three years. “Projects like Sellersville Senior Residences not only serve as affordable homes for seniors, but also an innovative way to bring residents and stakeholders together in ways that foster community, trust and friendships,” said John Bendel, Senior Director of Community Investment, FHLBank.

Reflecting on the project’s success, Jones said, “There is always a need for gap financing in our industry, and it’s always difficult to find. FHLBank works hard to find ways to fill the gap and to make a project work. Both FHLBank and S&T Bank were great to work with and very supportive of this project.”

Transitional Housing Constructed for Homelessness Relief Services in Columbia County

Accessing homelessness relief services, particularly in rural areas, can be exceptionally challenging. First Columbia Bank & Trust Co. (First Columbia), along with regional stakeholder Community Strategies Group (CSG), recognized both the need and opportunity to serve those in their local community.

Through its Federal Home Loan Bank of Pittsburgh (FHLBank) membership, First Columbia received a $650,000 grant through the FHLBank’s Affordable Housing Program (AHP). Funding for the project, comprising the combination of the AHP grant together with other funds CSG secured from federal, state and local sources, totaled $2.9 million – a solid foundation for converting the former West Street Church into transitional housing.

“Our members are the link between our cooperative’s funds and local housing needs,” said John Bendel, Senior Director of Community Investment, FHLBank. “First Columbia’s support of this project is a testament to their commitment to serving the needs in their backyard and demonstrates how the FHLBank’s AHP can help to address those needs.”

The former church building had been long owned by Bloomsburg resident Bill Brobst and, following his donation of the property, the resulting transitional housing was renamed Bill’s House, in his honor. “From the beginning, this project has aimed to help those experiencing homelessness in our community. We are already seeing the positive impact of this transitional housing and the associated programs. The positive impact will be felt by our community for years to come,” said Lance O. Diehl, President and Chief Executive Officer, First Columbia.

Bill’s House created nine rental units, with five units dedicated to those transitioning from homelessness to permanent housing. Residents are recommended through a non-profit community organization that provides safe shelter to homeless families in Pennsylvania’s Columbia and Montour Counties.

In addition to housing, this collaboration also includes transformative services such as personal budgeting, financial literacy, job placement and job training. “These services create an atmosphere of bonding between Bill’s House residents and foster important skills necessary for a successful transition to live independently,” explained Josh Nespoli, CSG’s Deputy Director.

Bill’s House was completed in 2022. While some residents may need to stay for a few years, others have already moved out to permanent housing. That path to success allows for additional new residents to use Bill’s House as a step in their journey toward a better future.

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About Community Strategies Group (CSG)

CSG collaborates with public and private partners to enhance the quality of life in the communities that they serve. CSG strives to create strategic pathways to local solutions. CSG empowers individuals and organizations to achieve strong, healthy communities where all basic needs are met for every citizen. All people should have access to adequate housing, nutrition, recreation, the arts, and meaningful work.

About First Columbia Bank & Trust Co.

First Columbia Bank & Trust Co. is a full-service community commercial bank, serving a market area in Columbia, Luzerne, Lycoming, Montour and Northumberland counties in Pennsylvania.

First Columbia engages in a full line of personal, business and municipal financial services and alternative investment products, including, under full trust powers, a complete line of corporate and personal fiduciary services. First Columbia addresses these markets through its main office in Bloomsburg and 11 community branch offices.

About FHLBank Pittsburgh

FHLBank Pittsburgh provides reliable funding and liquidity to its member financial institutions, which include commercial and savings banks, community development financial institutions, credit unions and insurance companies in Delaware, Pennsylvania and West Virginia. FHLBank products and resources help support community lending, housing and economic development. As one of 11 Federal Home Loan Banks established by Congress, FHLBank has been an integral and reliable part of the financial system since 1932. Learn more by visiting www.fhlb-pgh.com.

UPDATE: New LGBTQ Housing and Care Resources Available Through AHP-funded Life Lines Project

As part of Fulton Bank’s community engagement efforts across the American Northeast, its employees worked with West End Neighborhood House and FHLBank Pittsburgh to support the development of housing for homeless and at-risk youth in Wilmington, Delaware.

The housing and supportive services are managed by West End’s Life Lines program, which serves current and former foster care youth, unaccompanied youth and those who identify as LGBTQ. Clients range in age from 16 to 23.

Young adults transitioning out of foster care face many challenges, including finding adequate housing and social services. Often without family support, a credit history, a job or even a secondary education and basic life skills, they are at far greater risk of homelessness than those coming from more stable home environments.

For those identifying as LGBTQ, the challenges are even greater. According to UNICEF’s Voices of Youth reporting, LGBTQ youth have a 120% higher risk of homelessness than their heterosexual peers.

Life Lines Program Director Stacy Shamburger explains. “Many at-risk youth lack the resilience, support, community and safety that most of us are fortunate to have. Our mission is to help them become their best selves, and our job is to provide them with safe, stable housing and the tools they need to feel supported along their journey.”

With the project’s completion in April 2022, West End Neighborhood House and the project’s developer, Cornerstone West Community Development Corporation, increased Life Lines’ housing capacity to accommodate 33 youth. Three of the 10 new beds are prioritized for LGBTQ youth through Life Lines’ Pride Program. 

“As a member of FHLBank Pittsburgh, we have ready access to capital and to products that help us better serve our communities,” said Wm. Smokey Glover, Executive Vice President, Director of Fair and Responsible Banking at Fulton Bank. “FHLBank’s Affordable Housing Program enabled us to work with local partners to fund this Life Lines project and help young people in our region who are aging out of foster care. Fulton Bank is proud to work with FHLBank and support projects like this as part of our mission to change lives for the better.” 

The housing was made possible through Fulton Bank’s support of a 2019 Affordable Housing Program (AHP) award of $750,000. The sponsorship was part of the Fulton Forward^TM initiative which offers programs, products and services in affordable housing, job training and workforce development, financial education and economic development.

“FHLBank Pittsburgh is one of only a few funders of affordable housing in our area,” according to Sarah Lester, Cornerstone West’s President and CEO. “The AHP grant was the largest single, non-governmental source of funding for our capital campaign, and we couldn’t have created this housing without it.”

The project produced a new three-bedroom home, a one-bedroom ADA-compliant home – Life Lines’ first fully accessible unit – and the rehabilitation of two three-bedroom townhomes. All homes have full kitchens, washers and dryers and are completely furnished. The ADA-compliant house is designed to accommodate a non-ambulatory, sight and/or hearing-impaired individual. 

Since its inception in 2001, Life Lines has served more than 1,000 of Delaware’s former foster care and low-income homeless youth.

“Fulton Bank has actively utilized the FHLBank’s credit and community products to enrich the communities they serve,” said Fred Banuelos, FHLBank Pittsburgh Community Investment Business Development Manager. “Their investment in this economically and ethnically diverse region builds upon their dedication to this community and invests in LGBTQ and accessibility resources for youth in Delaware.”

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Learn more about this project on the FHLBank Pittsburgh website under “AHP”: Life Lines Provides Housing for Homeless Youth in Delaware.

The Affordable Housing Program (AHP) helps FHLBank members participate in the development of affordable housing in the communities they serve. Learn more by visiting https://www.fhlb-pgh.com/AHP. 

FHLBank Pittsburgh provides reliable funding and liquidity to its member financial institutions, which include commercial and savings banks, community development financial institutions, credit unions and insurance companies in Delaware, Pennsylvania and West Virginia. FHLBank products and resources help support community lending, housing and economic development. As one of 11 Federal Home Loan Banks established by Congress, FHLBank has been an integral and reliable part of the financial system since 1932. Learn more by visiting www.fhlb-pgh.com. 

 

West Virginia Blueprint Communities Build on Successful Partnerships

Many of us take great pride in our hometowns – even if the places where we grew up have lost some of their luster over time. Have you wondered what it would take to recapture the sense of place and vitality your community once had, to attract new families and to grow new businesses? Would it involve revitalization of the town center, or event sponsorships that bring people together, or something else altogether?

How would you create a new vision and plan, and how would you fund it? Where would you begin?

Six West Virginia communities – each sponsored by one or more FHLBank Pittsburgh member financial institutions – have spent the past two years answering those questions, while working to create and implement plans to revitalize their communities.

• Kingwood in Preston County, sponsored by Clear Mountain Bank and WesBanco
• Lewis County, sponsored by Citizens Bank of Weston
• Meadow River Valley in Greenbrier County, sponsored by Summit Community Bank
• The Monticello Neighborhood of Clarksburg, sponsored by MVB Bank
• New Martinsville in Wetzel County, sponsored by Union Bank
• Parsons in Tucker County, sponsored by Citizens Bank of West Virginia

They have done this work with the support of FHLBank Pittsburgh’s Blueprint Communities® – an initiative designed to revitalize older communities and neighborhoods by developing local leadership and growing their capacity to accomplish their own goals.

“Blueprint Communities was developed in response to our members’ concerns for under-invested communities in the areas they serve,” explains John Bendel, FHLBank Pittsburgh’s Senior Director of Community Investment. “Our members are looking for ways to help their communities find opportunities for growth.” Established in 2005, Blueprint Communities has since supported 64 communities across Delaware, Pennsylvania and West Virginia in their revitalization efforts. This program focuses on creating and building momentum, often working in concert with prior and ongoing initiatives and investments made by public and private entities. The six communities in West Virginia comprise the latest Blueprint Communities cohort.

According to Laura Rye, MVB Bank Community Reinvestment Act Officer and MVB Community Development Corporation COO, “Blueprint Communities is pivotal and sustaining for participating communities – providing the resources they need to stay on track and achieve long-term success.”

For this 2019 cohort, FHLBank Pittsburgh engaged the West Virginia Community Development Hub (The Hub) to help provide training and coaching to the six communities’ multidisciplinary teams, each of whom includes a local government official, a real estate development professional and a representative from a community organization. FHLBank Pittsburgh members also participate on the teams, contributing their financial expertise, strong community relationships and access to capital.

Additionally, FHLBank Pittsburgh provides each participating community with funding, including ‘anchor’ or ‘capacity-building’ grants for administration and training, and mini-grants awarded over a two-year period to kickstart priority projects.

“Small, rural communities often struggle to fund and execute large complex projects solely through volunteer support,” says The Hub Community Development Programs Specialist Kaycie Stushek. “Blueprint Communities’ anchor grants allow them to pay for staff and other administrative expenses that are needed to sustain their efforts. They are a critical component of the program’s success and part of what distinguishes Blueprint Communities from other community development programs.”

The program also encourages investments by public and private funders, and partners with organizations that can lend vital expertise. This enables the Blueprint Communities initiative to work alongside federal and state resources that help bring community plans to life. Blueprint Communities is just one of several community investment products offered by FHLBank Pittsburgh.

West Virginia’s Blueprint Communities teams began their work in 2019 and received their official Blueprint Communities designations in August 2020. During that time, the teams worked with their communities to better understand local needs and priorities – and worked with each community in the cohort, sharing ideas and resources that helped them build and implement their five-year strategic plans. According to Janet Preston with the Parsons team, “Working with the other teams has been energizing and inspiring because we can see possibilities for our own communities in each other’s work.”

In addition, the teams have partnered with a multitude of organizations – colleges and universities, economic development agencies, foundations, local lenders and volunteer groups – that have donated time, expertise and funding to further the revitalization efforts. According to Stushek, “Collectively, the teams have leveraged their individual $37,250 in anchor grants and approximately $15,000 of mini-grants to generate more than $2.83 million in funding, including a $750,000 Affordable Housing Program grant from FHLBank Pittsburgh and a $1.8 million Abandoned Mine Lands Program grant from the U.S. Department of the Interior.” With the additional $15,000 mini-grants in 2022, the communities can expect that leverage will grow.

Their plans and projects, while unique to their locales, address common priorities in older rural communities. Several teams have focused on revitalizing their downtowns – demolishing or repurposing older commercial buildings and creating urban parks with landscaping, seating and artwork by local artists. With West Virginia’s growing reputation as a destination for outdoor recreation, others have been working to improve regional parks and trails. Two of the communities are working to renovate former school buildings for use as community centers and affordable housing.

Marketing and advertising campaigns promoting local businesses, new business opportunities and recreational tourism complement these revitalization efforts. Events – organized hikes and 5K runs, outdoor movie nights, concerts and Second Saturday celebrations – encourage community partnerships and participation.

There have been challenges along the way – the pandemic among them. But since achieving their Blueprint Communities status, the teams have made important strides in their initial goals and built on their plans to grow their communities in ways they could not have envisioned when they began their Blueprint Communities journey.

Partnerships have been fundamental to their success – and to the overall success of the Blueprint Communities initiative. According to Stushek, “The Hub's close working relationship with FHLBank Pittsburgh has been essential to the communities’ ability to achieve their goals. Even during the height of the pandemic, the strength of that partnership gave us the flexibility we needed to respond to the communities’ changing needs – while producing program deliverables and supporting communities to achieve remarkable results."   

FHLBank Pittsburgh’s Affordable Housing and Community Development Manager Rhiannon Haller concurs. “FHLBank members’ investments and partnership with The Hub, and the foundation laid by the Blueprint Communities initiative will hopefully sustain the success of these six communities for generations to come.”

 "Blueprint Communities" is a registered service mark of the Federal Home Loan Bank of Pittsburgh.

West Virginia Bank Creates Housing for Seniors in Need

Monroe County lies in the heart of the picturesque Allegheny Mountains. It is rural – there are no stoplights or fast-food restaurants in the entire county – and it is economically disadvantaged. With few employers and limited access to broadband Internet, younger residents seek opportunity elsewhere, leaving behind a growing senior population.

In 2014, seniors represented approximately 16% of the county’s residents, its second largest age demographic, and most could not afford market-rate rents.

With the school district’s donation of the old Greenville School property in 2014, Monroe County Council on Aging (MCCOA), a 501(c)(3) nonprofit corporation providing meals, in-home services and transportation for seniors, had an opportunity to expand its services and create additional housing for the county’s senior citizens.

MCCOA embarked on a five-year project to develop the 11-acre property. The plan for the new Greenville Senior Living and Community Center included a senior center, a community and economic center and 16 units of affordable housing. Roughly estimated to cost $3.2 million, the project represented “a huge investment in this very rural, underserved area of West Virginia,” according to Bank of Monroe President and CEO Jim King, who would play an instrumental role in the project’s success.

MCCOA provided $100,000 in seed money and began by converting the old kindergarten annex into a senior center, while its all-volunteer project team began looking for funding to complete the full scope of the five-year project. As team member Skip Heath recalls, “We had a good mix of talent in construction, finance, cost analysis and project management, but little experience with a project of this scale.”

Undaunted, and after a few false starts, the team found the resources it needed to develop the senior housing. West Virginia Affordable Housing Trust Fund provided an initial $20,000 loan for predevelopment, and after discussion with FHLBank Pittsburgh staff, the team approached Bank of Monroe to request its sponsorship of an AHP grant for housing construction.

Established by Congress, AHP provides grants and subsidized loans for the acquisition, construction and rehabilitation of affordable housing for households with incomes at or below 80% of the area median income. Housing developers partner with FHLBank members to apply for AHP funding, which is offered through an annual competitive funding round.

King explained, “Although we were not familiar with the AHP at the time, we met with the individuals involved and got comfortable with their plan and the program. Ultimately, we are here to support the communities we serve, and the AHP offered a great opportunity to help fund and collaborate on this important project for the Greenville community.”

In 2016, MCCOA received a $650,000 AHP grant from FHLBank and, in 2017, a $700,000 HOME Program loan from West Virginia Housing Development Fund (WVHDF) to construct two apartment buildings, each with four units of affordable housing for seniors and individuals with disabilities. Construction began in August 2017, and with the successful completion of the first eight units, MCCOA received a second AHP grant of $650,000 in 2018 and a third grant of $730,000 in 2019, enabling the construction of eight more units of housing. Each of the AHP grants supported a separate phase of the project.

In addition to sponsoring the AHP applications, Bank of Monroe provided lines of credit to facilitate the construction.

Completed in 2019, Greenville Senior Living consists of four one-story buildings with four apartments each: one two-bedroom and three one-bedrooms. In addition to wheelchair access, the new homes feature private front and rear porches, energy-efficient appliances and central heating and air conditioning. Residents have easy access to meals, transportation, educational and recreational opportunities, fitness classes and counseling at the nearby senior center.

The campus is also home to Greenville Farm Kitchen, a non-profit organization that processes and distributes hand-crafted foods throughout West Virginia. MCCOA’s original plan for the site will be complete with its conversion of the old school building into a community center, replete with office space and a gym for community and school use.

Heath credits FHLBank and the WVHDF for their critical support in developing the project. “Bottom line, we could not have done this project without WVHDF and FHLBank Pittsburgh. I cannot say enough about both organizations and their staffs.”

While Greenville Senior Housing represents Bank of Monroe’s first experience with AHP, it was not its last. When FHLBank provided down payment assistance to West Virginia homeowners impacted by flooding that ravaged the area in 2016, Bank of Monroe gave loans on the properties. In 2017, King received the Council’s Award from FHLBank for his outstanding work in promoting stability and revitalization.

Reflecting on his experience working with FHLBank, King said, “FHLBanks play a huge role across the country. There are so many places in our area that can benefit from their funding and support, and we are fortunate that FHLBank Pittsburgh has always responded."

TD Bank Gives Unoccupied Space New Life, Creates Senior Housing

Over the past 40 years, Philadelphia’s Fairhill neighborhood has strived to revitalize. Once a blighted post-industrial district, Fairhill – served by El Centro de Oro or “The Golden Center” commercial district – is today the city’s center of Hispanic and Latino life and culture. This community comprises nearly 85% of Fairhill’s population, and the area is home to diverse businesses, arts and cultural organizations, and welcoming public spaces.

Fairhill’s growing success as a community is due in no small part to the Hispanic Association of Contractors and Enterprises (HACE), a local 501(c)(3) community development organization. Founded in 1982, HACE has invested more than $200 million to create affordable housing and promote Fairhill’s economic development, while encouraging the community’s residents to take ownership of their own economic trajectory.

In 2018, HACE began planning for Casa Indiana. The project would provide affordable rental housing for one of the community’s fastest growing populations: low-income seniors – many with language and cultural barriers limiting their access to essential services. Built on a property that had sat vacant for more than 30 years, the project was also planned to serve as an anchor for future economic development.

TD Bank helped source financing for this project by providing a $6.8 million bridge loan for construction, which along with developer fees, would be repaid with $11.4 million of low-income housing tax credits (LIHTC). Additional funding included $2 million from the City of Philadelphia, $1.8 million in Pennsylvania Housing Affordability and Rehabilitation Enhancement Fund (PHARE) and Housing Trust Fund (HTF) funds, and an additional $456,000 equity contribution by HACE. Rental subsidies are being provided by the Philadelphia Housing Authority.

The City of Philadelphia donated the abandoned property – a brownfield requiring significant environmental remediation and containment. During the LIHTC underwriting process, costs for the environmental work escalated, exceeding the project’s original estimate. Faced with paying the additional expense out-of-pocket, HACE applied for an Affordable Housing Program (AHP) grant from the Federal Home Loan Bank of Pittsburgh (FHLBank).

Established by Congress, AHP provides grants and subsidized loans for the acquisition, construction or rehabilitation of affordable housing for households with incomes at or below 80 percent of the area median income. Housing developers partner with FHLBank members to apply for AHP funding, which is offered through one competitive funding round each year.

TD Bank sponsored HACE’s application and the project received a $405,000 award.

“AHP is such a great resource for affordable housing,” said Amy Derstine, HACE’s relationship manager at TD Bank. “The fact that HACE was able to use these funds for environmental remediation was a huge advantage for this project.”

HACE President and CEO Maria Gonzalez concurs. “The AHP award was a timely and essential resource for making this project happen. It was absolutely critical to filling our funding gap and helping us move forward on-budget and on-schedule.”

Casa Indiana opened on June 18, 2020. All 50 one-bedroom apartments were leased within 45 days, which underscored Fairhill’s need for affordable senior housing. Eight of the units are accessible for individuals with mobility challenges and two are equipped for those with hearing and visual impairments. All are adaptable to accommodate the changing needs of residents as they age in place. The project, which includes a community room, library and garden for the residents, received a 2020 award from the Pennsylvania chapter of the American Institute of Architects for building excellence.

All of Casa Indiana’s residents earn 50% or less than the area median income. Working with community partners, HACE offers them a range of support services – from rental subsidy and utility assistance to weekly deliveries of meat and produce. A partnership with Mercy Health provides residents with medical and other services through the Life Center located just three blocks away.

As with the other properties it has developed, HACE will continue to own and maintain Casa Indiana to ensure it will be available and affordable for the next generation of Fairhill’s seniors. “In addition,” says Gonzalez, “this enables HACE to provide jobs for local residents.”

“Fairhill is an area of focus for TD Bank,” adds Derstine, “and we were eager to partner on this project – as a lender and sponsor of HACE’s AHP application. It’s truly rewarding to make a positive difference for Fairhill’s seniors and the community as a whole.”

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FHLBank Pittsburgh provides reliable funding and liquidity to its member financial institutions, which include commercial and savings banks, community development financial institutions, credit unions and insurance companies in Delaware, Pennsylvania and West Virginia. FHLBank products and resources help support community lending, housing and economic development. As one of 11 Federal Home Loan Banks established by Congress, FHLBank has been an integral and reliable part of the financial system since 1932. Learn more by visiting www.fhlb-pgh.com.

Organic Snack Business Uses BOB Loan to Meet Rising National Demand

In 2018, organic snack maker Kate's Real Food was at a crossroads. With 10 employees making all products by hand, the startup could not meet increasing demand for its products from grocery chains, specialty stores and online retailers. To grow, the company would have to expand its operations or outsource production to a co-packer.

Committed to producing 100% organic products, owners Bruce Thaler and Kate Schade chose to build their own vertically integrated facility, where they could control product quality, production schedules and costs. Finding a location near a large metropolitan area with a larger pool of workers and access to major shipping corridors would be critical to increasing production and expanding distribution.

Thaler, a resident of Altoona, Pennsylvania, saw opportunity in Bedford County - a Pennsylvania Keystone Opportunity Zone providing attractive tax incentives to qualified employers. In addition to private equity and bank loans, the $5.1 million project would qualify to receive more than $2.8 million in economic development funding for real estate acquisition, construction and worker training.

With competing demands for the company's own capital, a remaining challenge was funding for additional inventory. For help, the company turned to FHLBank Pittsburgh member Marion Center Bank. Deborah Krise, vice president and a business development officer, presented an attractive funding package, complementing the bank's $400,000 loan with a $200,000 loan from FHLBank's small-business financing product, Banking On Business.

Krise explains, "We typically offer 65% loan-to-value on inventory, requiring the borrower to provide 35% of the cost. Leveraging our FHLBank membership, we were able to use Banking On Business to satisfy our underwriting requirement, enabling the company to use its own equity for other expenses. In addition, because the borrower pays no interest or principal during the first year, they have time to get their business up and running before starting to repay the loan."

According to, Mark Thaler, CEO of the new manufacturing facility, The Organic Snack Company, "This project involved more than a new building and equipment. We had to make the leap from making our product entirely by hand to using automated processes. It was critical to have sufficient inventory to meet demand while growing our production capacity."

The Organic Snack Company opened its new facility in early 2020 and soon had 15 employees producing 50,000 bars per day for Kate's Real Food, with plans to add up to 45 staff by the end of 2021.

According to Thaler, "In addition to increased capacity, we now have the flexibility to innovate and to collaborate with customers on exclusive product offerings. And with new growth opportunities, we can look forward to building a company that has a positive, sustainable impact on the community we live and work in."

"Projects like this are great for our community," adds Krise. "They create jobs across the supply chain and facilitate economic development. Banking On Business helps to do that."

Home4Good Aids Relief Efforts for Delaware Renters

COVID-19 changed Delaware’s economy almost overnight. Thousands of businesses closed or dramatically downsized. Essential workers stayed on the job; those who could worked from home; others had their hours reduced or were simply out of a job. Without the income to pay their monthly bills, many Delaware renters found themselves facing eviction.

In March 2020, Delaware Governor John Carney and DSHA Director Anas Ben Addi announced the creation of the Delaware Housing Assistance Program (DEHAP) to provide rental assistance for eligible households experiencing a COVID-19 job loss or loss of income.

The first such program in the United States created by a housing finance agency, DEHAP was initially funded by a $2 million grant from DSHA and support from local governments. Community response proved overwhelming, and one month later, DSHA paused the program to assess its sources of funding and how to best support the program going forward. As part of the process, DSHA looked to FHLBank Pittsburgh’s Home4Good initiative for help.

FHLBank and its Home4Good partners quickly agreed to commit $700,000 of its 2020 Home4Good allocation to DEHAP. Twelve FHLBank members rallied to serve as co-applicants for the award. According to Jim Rovito, Vice President at co-applicant First Citizens Community Bank, “As FHLBank members, we were privileged to be in a position to support the DEHAP’s efforts fairly early in the pandemic, and we were eager to help.”

Marlena Gibson, DSHA’s Director of Policy and Planning, credits FHLBank’s early commitment as key to getting DEHAP off the ground and attracting other sources of funding. “As the pandemic continued through the spring and summer of 2020, so did the demand for DEHAP funding. We turned to our partners at FHLBank for support, so we could continue operating the program while working to assemble and confirm additional funding. FHLBank offered its assistance with no hesitation, and together, we came to a solution that allowed us to help more Delaware families stay current on their rent during the pandemic.”

By March 2021, DEHAP was in its third iteration, and with help from the federal government and a broad network of other supporters, funding had substantially increased. One year into the program, DEHAP had approved more than $19.3 million in COVID-related assistance to nearly 5,000 households. With an additional 7,400 applications submitted under the most recent version of the program, DSHA anticipated accepting DEHAP applications at least through the end of 2021.

In addition to First Citizens Community Bank, other FHLBank members who served as co-applicants included:

• Artisans’ Bank
• Community Bank Delaware
• County Bank
• Dover Federal Credit Union
• First Citizens Community Bank
• Fulton Bank,N.A.
• Meridian Bank
• Stepping Stones Community Federal Credit Union
• TD Bank, N.A.
• The Bancorp Bank
• The Bryn Mawr Trust Company
• Wilmington Svgs Fund Society, FSB

Susan Eliason, DSHA’s Director of Housing Development, explains how the funding helped to sustain Delaware renters during the pandemic. “The funding received from FHLBank allowed DSHA the opportunity to help thousands of Delaware households impacted financially by the pandemic remain in their homes. We are incredibly thankful to FHLBank for its support of DEHAP and its commitment to DSHA’s mission of helping our state’s residents avoid eviction during this difficult time.”

About Home4Good

Home4Good is a flexible grant product that supports projects, programs and activities that lead to stable housing for those who are experiencing homelessness or at risk of homelessness. In 2020, FHLBank Pittsburgh and its Home4Good partners—Delaware State Housing Authority, Pennsylvania Housing Finance Agency and the West Virginia Housing Development Fund—changed the 2020 Home4Good process so that funding could quickly reach communities, families and individuals facing homelessness as a result of the COVID-19 pandemic. FHLBank Pittsburgh contributed $4.8 million to the 2020 Home4Good initiative, and its housing finance agency partners contributed an additional $2 million, for a total $6.8 million. In addition to Delaware’s emergency rental relief program, the funding provided 20 block grants to Continuum of Care organizations in Pennsylvania and West Virginia.

Blighted Hotel Transformed into Affordable Housing Units, Social Service and Medical Center

The newly renovated Declaration House, formerly known as the Denver House, resides in the center of town on Main Street in Denver, Pennsylvania, where it’s home to 10 affordable housing units, social service offices, retail space and a medical center.

The new Declaration House, however, came a long way from what it used to be.

Built in 1863, the iconic Denver House served as a welcoming venue for food and a clean place to stay for more than 150 years. In recent years, the property had become blighted to the point of condemnation. With the highest crime rate in the borough, it became an economic drag and hindered further downtown development.

That’s when the community united on a project that would eventually revitalize the downtown area. After the land was secured by REAL Life Community Services (REAL) and the Lancaster Housing Opportunity Partnership (LHOP), the Lancaster County Redevelopment Authority (LCRA) provided $600,000 in funding to jumpstart the project. Even with this initial investment and all the right partners at the table, the project was short $750,000 in funding to complete the $2.2 million renovation.

To close the funding gap, REAL partnered with Ephrata National Bank to apply for an Affordable Housing Program (AHP) grant from FHLBank Pittsburgh. The project was awarded the grant in 2018 and the Declaration House opened their doors to tenants on Sept. 1, 2019.

“Ephrata National Bank’s focus on reinvesting in the local community is also modeled by FHLBank through its Affordable Housing Program and other programs designed to bridge the gap in allowing individuals to obtain affordable housing or enter their very first home,” said Scott E. Lied, Executive Vice President and Chief Financial Officer at Ephrata National Bank.

FHLBank’s AHP provides grants and subsidized advances for the acquisition, construction and rehabilitation of affordable housing for households with incomes at or below 80% of the area median income (AMI). Housing developers partner with FHLBank members to apply for AHP funding, which is offered through a competitive funding round each year. Grants are awarded to the highest scoring projects until the round’s funds are exhausted.

Lied continues, “The opportunity to personally serve as Chairman of the Capital Funds Committee for the Declaration House was a natural fit, which allowed Ephrata National Bank to use its resources and membership with FHLBank to benefit the local community. The pursuit of the AHP grant occurred during the height of fundraising, when things appeared the most difficult. The possibility of garnering the grant provided a second wind to this challenging effort. It truly was the AHP grant that ensured the completion of the project and was the highlight of the fundraising efforts. We thank FHLBank for their commitment to affordable housing and the lives that have been positively changed as result of their efforts."

Justin Eby, Deputy Director at LCRA, agrees that this grant was instrumental to the project. "The Lancaster County Redevelopment Authority was proud to partner with FHLBank Pittsburgh and many others to bring this exciting project to reality,” said Eby. “The Affordable Housing Program was instrumental in not only creating needed housing units, but also helped kickstart other development projects in Denver's downtown."

Today, the Denver House has a new name, a new look, and a tenant with a new start on life. When Patricia Dean saw her apartment for the very first time, she was full of emotions. "It's been a struggle on the family," Dean said. "It's been struggle on our relationships, especially on the kids so this was just a fresh start."

BOB Supports Barbershop Owners in Southeast Pennsylvania

Andre Gonzalez always had a plan to open multiple barbershops and, eventually, to own the business properties. He’s been working toward that goal since he started cutting hair at age 13. In 2016, Gonzalez and his friend Joel Carcamo opened The Vintage Clipper barbershop in New Holland, Pennsylvania. Eleven months later, they launched their second location in nearby Millersville.

When the Millersville property they were renting went up for sale, Gonzalez and Carcamo had their chance to become property owners. Having been in business for only a year, financing was a challenge. For help, they turned to the lenders at Pennsylvania-based Community First Fund, who leveraged FHLBank Pittsburgh's small-business financing product, Banking On Business, to assemble a funding package.

Community First Fund provides financial and technical assistance to underserved populations in 15 counties across eastern Pennsylvania. Angel Rosario, the organizations Senior Community Lender who managed the loan, notes, "When Andre and Joel came to us, they were doing well, but had only a 5 percent down payment – not enough equity to qualify for a loan. Banking On Business provided a second unsecured loan to close the gap between their down payment and the financing we could provide."

After closing on the Millersville property, Gonzalez and Carcamo remodeled, expanding the shop from four to eight customer chairs and creating two three-bedroom apartments in the building to generate rental income.

"These loans have helped us take our business to the next level,” says Gonzalez. “We’re paying $700 more per month than we were as renters, but we’re making an additional $2,500 per month in income.” Gonzalez has leveraged the additional income to open a third barbershop location in Lancaster – on a lease, but with a goal to purchase.

"Since 2015, we've provided 27 Banking On Business loans, totaling $1.2 million," says Jim Buerger, Community First Fund’s Executive Vice President and Chief Lending Officer. "It's a great program because it gives people like Andre and Joel an opportunity to grow their business, own real estate and build their own wealth. This is how we lift up communities – one loan and one business at a time."

Brentwood Bank Uses CLP to Support Housing and Businesses in Pittsburgh

Brentwood Bank is a state-chartered savings bank that has served the South Hills area of Pittsburgh for nearly 100 years. Now the community bank is looking to expand its footprint with some help from FHLBank Pittsburgh’s Community Lending Program (CLP).

Providing reduced-rate funding for a broad range of economic development purposes – and with terms up to 30 years – CLP benefits both the bank and its customers.

"Particularly in this environment, where deposits are not keeping up with loan growth, having access to this affordable funding is a tremendous advantage," says the bank's SVP of Loan Operations, Carrie Havas. "It gives us the flexibility to fund a broad range of projects, and because we know what our funding cost will be, we can better price our loans to match, which often saves our customers money."

In the past three years, Brentwood Bank has used nearly $56 million of CLP funds to support six multi-family rental housing projects and 11 small businesses. The funding included $5.4 million used to purchase a 90-unit, multi-family complex in Wilkinsburg, a low-income part of Pittsburgh. The units are priced at fair-market rents.

Brentwood Bank uses CLP to fund loans for multi-family housing in low- and moderate-income areas because, as Havas says, "The need for affordable housing is everywhere. Rents are going up, and lower-income families can't afford as much. Property owners want to make improvements while keeping rents affordable. CLP gives us the ability to help." Brentwood Bank uses CLP to support small businesses and economic development in much the same way. A recent $1 million CLP loan was used to refinance debt and improve the cash flow for a shopping center in suburban Penn Hills, just east of Pittsburgh. Another $4.6 million CLP loan facilitated the purchase of a seven-unit shopping plaza in Pittsburgh's Lawrenceville neighborhood. The tenants in both retail centers provide goods and services that are vital to the residents of these moderate-income communities.

According to Havas, "Our partnership with FHLBank helps us support these investments in our communities. FHLBank gives us the kind of tools we need to provide our customers the type of funding they're looking for. That, in turn, helps us grow."

FFD Helps Kish Bank Support First-Time Homebuyers

If asked to list life's major milestones, most people would put buying a first home near the top. Homeownership offers safety and stability and a chance to build financial equity. For many residents of Mifflin County, Pennsylvania, however, buying a home seems an impossible dream.

Nestled between the Ridge and Appalachian Mountains, Mifflin County (pop. 46,000) is a largely rural, working-class area. Many residents live paycheck to paycheck, making it hard to save for a home.

Kish Bank, based in central Pennsylvania, is working to help by using FHLBank Pittsburgh's First Front Door (FFD) product to provide down payment and closing cost assistance to first-time homebuyers.

"First Front Door gives us a huge step up in serving first-time homebuyers," says Kish Bank VP and Residential Lender Penny Zesiger. "Because it works in combination with our other products, we can use it to qualify a wider range of buyers. The FFD grant is often the difference in a customer’s ability to close a loan."

Since starting with the program in 2016, Kish Bank has provided $169,000 in FFD grants to 37 first-time homebuyers, including a single teacher, a young working couple with two small children, and a 74-year-old woman whose landlord sold the building where she had been living for years.

"Buying a house has been life changing for these people," added Zesiger. "For many of our clients, FFD is their only chance to buy a home, and I don’t want them to miss it." Each year, Zesiger proactively contacts prospective homebuyers before the FFD funding is available so that they will be ready when the funds are. "Kish Bank is about helping customers achieve their goals," she says, “and that includes their dream of being a homeowner."

Home4Good Helps St. Martin Center Reduce Homelessness in Erie, Pa.

Like many communities in the mid-Atlantic region, the city of Erie and Erie County, Pennsylvania have lost a significant number of jobs in recent years as large manufacturers have downsized or relocated operations. Many residents have suffered. Some are now, and others are at risk of, experiencing homelessness.

For the past two years, long-time Erie-based partners Marquette Bank and St. Martin Center have been growing their capacity to help, leveraging FHLBank Pittsburgh's Home4Good product.

"Our mission at St. Martin Center is to reduce homelessness and improve long-term housing stability by linking clients to needed services and support," says the Center's CEO, David Gonzalez. "As an organization," he adds, "our biggest challenge is obtaining funding."

Ed Drexler, SVP of Residential Lending for Marquette Bank and a St. Martin Center board member, was confident FHLBank’s Home4Good, offered through the Pennsylvania Housing Finance Agency, could help.

St. Martin Center received a $96,600 Home4Good grant in 2018 to fund services to help a number of clients transition to self-sufficiency, including individuals experiencing homelessness and those at imminent risk of homelessness, veterans and ex-offenders. The grant enabled St. Martin Center to hire a dedicated case manager to direct clients to needed services, including financial literacy and tenant education. It also helped the Center address common support requests – rapid re-housing, rental and utility assistance, transportation, clothing, and IDs and/or tools for employment purposes – as well as refer clients to other support agencies in the community. A 2019 Home4Good award of $40,000 enabled St. Martin Center to continue the efforts begun in 2018.

Housing Case Manager Joshua Jaeger notes, "One of the best things about Home4Good funding is its flexibility. Because it doesn't have the restrictions that come with other funding sources, we don’t have to deny service to someone who may be $1 over other programs' established eligibility thresholds."

Home4Good is one example of Marquette Bank and St. Martin Center’s long-standing partnership. St. Martin also provides financial literacy training to Marquette's first-time homebuyers, and the bank's employees volunteer at St. Martin’s food pantry. Employees from both organizations exchange program information with each other at their annual "Lunch and Learn" event. "I will support St. Martin’s use of Home4Good as long as it is available," says Drexler. "The Center’s work promotes stability. Helping people rebound from hard times makes Erie a better place to be. It lifts the entire community."

Life Lines Provides Housing for Homeless Youth in Delaware

Each year, approximately 65 youth are discharged from Delaware’s foster care system. Many cannot return to their biological families and are at high risk of homelessness. West End Neighborhood House – the state’s primary provider of housing and support services for this vulnerable population – is using FHLBank Pittsburgh's Affordable Housing Program (AHP) to grow its capacity to help.

Since 2008, the organization's Life Lines Program has been awarded three AHP grants totaling $1.05 million to help create transitional and permanent housing for dozens of youth aging out of the foster care system.

The most recent, in 2019, was a $750,000 AHP grant awarded through a partnership with Pennsylvania-based FHLBank member Fulton Bank. The grant will be used in combination with funding from other sources to create 10 new single-occupancy residences and a Resource Center space to support homeless youth with everyday tasks that are difficult when you do not have support or housing stability. Services such as washing machines and dryers, meals, mailboxes and more will be available to the youth as they develop their plan forward for housing and job stability. One of the new homes will be Life Line’s first fully handicapped-accessible residence, and the Resource Center will be the first of its kind serving this population in the state.

According to Life Lines Program Director Stacy Shamburger, "The total cost of all phases of this project will be about $2.4 million, and the AHP grants have been a significant portion of that funding. The most recent grant has also helped us attract other funding. The fact that AHP is supporting this effort for the third time is meaningful to other investors."

Tracy Fletcher, Fulton Bank's VP of Commercial Community Development Lending, concurs. "Projects like Life Lines need some kind of subsidy to make them viable," he says. "AHP can be used with other programs, and it is often AHP that closes the funding gap to make a project viable."

The new homes will be constructed adjacent to the existing Life Lines homes and will replace the last portion of vacant and blighted properties in a four-block radius on Wilmington’s West Side. The site is located near a bus line, a hospital, a shopping area, West End Neighborhood House and other services. The design is also consistent with the West Side Blueprint Communities^® revitalization efforts, which is also supported by FHLBank Pittsburgh.

Fulton Bank helped Life Lines apply for AHP funding through its Fulton Forward™ initiative, which was created to stimulate economic empowerment, break the cycle of generational poverty and revive underserved communities. Nicole Earle, Fulton Bank's Commercial Community Development Officer, expressed her belief that without AHP, this population would be homeless. "We are fortunate to have access to AHP," she says, "and a strategic partner like FHLBank to help projects like this come to fruition."