Community Success Stories

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."

Six West Virginia Communities Embark on a Multiyear Revitalization

Developing a welcoming community gateway, connecting and developing recreational trails, repurposing empty schools, redeveloping a downtown building and recruiting new businesses – these are among the community-driven goals of FHLBank Pittsburgh’s newest Blueprint Communities^® participants.

In 2019, six West Virginia communities embarked on a multi-year revitalization effort enabled by the Blueprint Communities^® initiative and facilitated by The West Virginia Community Development Hub (The Hub). Each of the six communities’ participation is supported by one or more FHLBank Pittsburgh member financial institutions:

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

Blueprint Communities^® participants are typically small communities, with populations of less than 30,000. To lead their respective development efforts, each community assembles a team of eight to 10 stakeholders, including a local government official, a real estate development professional, and representatives from both a community organization and an FHLBank Pittsburgh member institution.

"There are so many aspects to a revitalization effort, and everyone involved plays a vital role," says Kaycie Stushek, The Hub's Community Development Network Coordinator. "FHLBank members are critical to the team because of their financial expertise, community relationships, and ability to connect projects to FHLBank funding and other community resources." 

Each team devotes one year to creating a strategic plan, researching solutions and gathering community input. At the end of the year, the communities receive their official Blueprint Community designation and begin implementing their strategic plans. The Hub provides training and coaching to the teams, helping them adjust their efforts as needed to achieve their goals. The communities also have access to FHLBank grants and funding to support their efforts while they are a designated Blueprint Community – which can be up to 10 years.

"Community development takes time and requires a lot of perseverance on the parts of the communities and the funders," says Stushek. "FHLBank has demonstrated, time and again, its commitment to meeting communities where they are and supporting locally driven initiatives that foster impactful, long-lasting change."

Since 2007, The Hub has worked with FHLBank Pittsburgh to support 22 West Virginia communities, including the newest six currently completing training, in achieving their unique goals.

Vacant High-Rise Building is Transformed into Housing for Seniors

As a member of FHLBank Pittsburgh, Fulton Bank collaborated with the Harrisburg Housing Authority (HHA) to apply for an Affordable Housing Program (AHP) grant. The project was seeking a grant to help support an affordable housing development for seniors in the heart of Harrisburg, Pennsylvania – a property known as Jackson Tower.

The high-rise building had been vacant for nearly 13 years, and it took four years and $22 million for HHA to complete the renovation. To get the job done, HHA patched together multiple sources of funding, including capital improvement funds, the Public Housing Operating Fund and Community Development Block Grants. Together, HHA and Fulton Bank applied for an AHP grant, and the project received a $500,000 grant.

Senghor Manns, HHA’s Chief Executive Officer, explained that the AHP grant was significant to the overall project. “We used the AHP funds to install a private freight elevator that accommodates motorized wheelchairs and access for emergency personnel,” said Manns, adding that this is an important feature for a senior living complex.

The AHP funds were also used to add an insulated, energy-efficient building shell. “It’s doubtful,” said Manns, “that these enhancements would have been possible without the AHP grant.”

Resident Jane West doesn’t see Jackson Tower – which now provides 159 units of affordable housing for seniors with middle-, low- and very low incomes – through the eyes of a bank or a housing authority. She sees it through the eyes of a hard-working, retired woman, a mother of five, and a great-grandmother of 40, and someone who says she is fortunate to call Jackson Tower home.

"This is very important,” said Miss West, referencing the development of affordable housing for seniors. “A lot of us worked all of our lives, and we don’t get a lot. We need some help, and we need to feel safe.” Jackson Tower, she says, does that.

Tracy Fletcher, Fulton Bank’s Vice President of Commercial Community Development Lending, said that safe and affordable housing changes lives for the better. “When we partner with FHLBank and developers like HHA,” he said, “we become part of the solution.”

AHP helps FHLBank members participate in the development of affordable housing in the communities they serve. Learn more about AHP.

Taking Behavioral Health Services to the Streets

Allegheny County’s Community Human Services (CHS) is using a $100,000 Home4Good grant to double its outreach to individuals who are struggling with homelessness and behavioral health disorders.

The expansion of services would not be possible without five FHLBank Pittsburgh members who served as Home4Good co-applicants: Brentwood Bank, S&T Bank, SSB Bank, Standard Bank and WesBanco Bank.

The Home4Good grant is helping CHS stretch beyond traditional affordable housing services to provide behavioral health assessments, medication management and psychiatric services to individuals who are homeless. CHS expects to double its outreach by increasing its hours of operation and hiring additional qualified staff.

Colin McWhertor, Chief Service Officer for CHS, explained the need for program expansion. “Individuals dealing with mental illness and homelessness live in a cycle that is hard to break,” he said. “The Home4Good grant is allowing us to take behavioral health services to the streets, with the goal of transitioning people to more traditional behavioral health treatment and eventually to stable housing.”

Kate Swanson, Community Investment Manager for FHLBank Pittsburgh, explained how Home4Good grants often support innovative solutions that might not be addressed by traditional funding sources. “Home4Good’s flexibility puts problem-solving into the hands of local providers who best understand the needs of their communities,” said Swanson. “As a result, we are seeing homeless solutions that are both innovative and targeted to the most critical needs in various geographic areas.”

About Home4Good: Home4Good is a unique partnership between FHLBank Pittsburgh and the state housing finance agencies (HFAs) in Delaware, Pennsylvania and West Virginia. It provides grants for activities, programs and services that aid the prevention and diversion of homelessness.

In 2018, Home4Good’s inaugural year, $4.8 million in grant money from FHLBank Pittsburgh was boosted by partial matching grants from participating HFAs, pushing the total funds earmarked for homeless services to more than $7 million and funding 80 projects that might not have occurred otherwise.

Home4Good Provides Housing Support to Delaware Families

YWCA Delaware provides diversion and rapid re-housing services to help local families who are on the brink of homelessness or have recently become homeless. These services offer temporary support most often to those who do not require emergency shelter but do need short-term rental assistance to help regain self-sufficiency.

Participating local landlords make leasing accommodations for tenants, such as more lenient credit or income requirements. Tenants also receive case-management assistance and financial help from YWCA to cover initial deposits, utilities and rental payments.

Through FHLBank’s Home4Good initiative, which was introduced in 2018 to support homeless services, FHLBank member Artisans’ Bank helped YWCA acquire funding to support its diversion and rapid re-housing services.

“Home4Good is a new tool in our toolbox,” said Stephanie Staats, Chief Executive Officer of YWCA Delaware. “The program helps us keep more Delaware families off the streets.” Joel Schiller, Artisans’ Senior Vice President, Chief Risk Officer, and Compliance & Community Reinvestment Act Officer, knows it is difficult for Delaware nonprofits to find funding and is happy that Artisans’ could assist.

“The YWCA is really engaged in helping the community,” Schiller said. “By supporting an organization already helping people stay in homes, Home4Good funding is going to a great place.”

AHP Gives Philadelphia Families a Place to Call Home

In 2015, FHLBank member Customers Bank began partnering with Habitat for Humanity Philadelphia to create affordable homes in Philadelphia.

Together, the two organizations have accessed more than $1.9 million in FHLBank Affordable Housing Program (AHP) grants to help support 22 new homes in previously vacant and blighted areas of the city.

Five of the homes were built in Hope Village, located in the neighborhood of Sharswood, using sustainable construction methods. The remaining energy-efficient homes are being built in Diamond Park in Lower North Philadelphia. All homeowners invest time and effort to assist in the construction process. AHP provides additional funding to housing projects that need it most. "Our partnership with Customers Bank allows us to serve more Philadelphians by giving us access to AHP," said Carrie Rathmann, the Habitat chapter’s Director of Strategic Partnerships.

Joseph Schupp, Customers' Senior Vice President and Community Development Officer, believes AHP is a win-win for the bank and the city. "Our goal was to help get funding back into the community," he said, “and these housing projects would not have been possible without AHP."

BOB Helps a Small Business in Chambersburg Grow

When Rob Almstrom learned that several industry professionals were looking for new jobs, he knew he could recruit the talent to grow his own small business, American Print Consultants (APC).

Based in Chambersburg, Pennsylvania, APC sells specialty printing equipment across the mid-Atlantic region, and additional staff would help increase the company's customer reach and drive additional business.

Almstrom turned to FHLBank member Patriot Federal Credit Union to help fund APC’s immediate increase in payroll. Patriot used FHLBank's Banking On Business (BOB) program to support the small business loan, which otherwise would not have met traditional underwriting standards. As a result, APC was able to add five new staff and purchase a new delivery truck. "We knew it would take time to grow the business," Almstrom said. "By using BOB, Patriot helped us cover our increased expenses until we could build our customer base."

Patriot was excited to help the small business expand and to support the community. "APC needed help to grow, and we wanted to provide a solution that also helped mitigate the business risk for us," said Eric Foreman, the credit union's Senior Vice President of Business Lending. "BOB was the glue that brought the deal together."

CLP Helps Lackawanna County Improve Public Spaces

In 2018, officials of Lackawanna County, Pennsylvania, needed to make county-wide improvements and turned to FHLBank Pittsburgh member Fidelity Bank for help with funding.

Fidelity used FHLBank’s Community Lending Program (CLP) to provide the County with flexible, competitive financing. The funds supported a variety of capital projects, including repairs to government buildings, improvements to a bridge and several local roads, and updates to an 840-acre park used year-round by residents and visitors.

"CLP's flexible terms and low interest rate helped Lackawanna County get the funding it needed, while ultimately saving the taxpayers money," said Timothy O'Brien, Fidelity’s Senior Executive Vice President and Chief Lending Officer. Salvatore DeFrancesco, Fidelity's Executive Vice President and Chief Financial Officer, agrees that using the program benefited the County and, ultimately, the community. "Because of CLP’s flexibility, we were able to help support local jobs and improve infrastructure for residents."

FFD Provides a Path to Homeownership in Pittsburgh

In just four years, FHLBank member First Commonwealth Bank has helped more than 100 first-time homebuyers purchase a home by using FHLBank’s First Front Door (FFD) program.

One of those buyers, Jodeci Jackson, was a single mother working overtime to afford a family home. Once she found her ideal house in east Pittsburgh, local housing programs helped reduce the purchase price, and FFD provided $4,900 to help cover the down payment and closing costs.

"FFD helped me a lot," said Jackson. "As a single mom focused on daily life, like paying bills and raising a small child, the extra money was a big help for my family." Evan Zuverink, First Commonwealth’s Vice President and CRA Officer, agrees that FFD helps those who need it most.

"It gives homebuyers who can afford a mortgage payment, but have limited savings for down-payment and closing costs, the resources they need to succeed," Zuverink said. "With FFD, First Commonwealth has been able to help Jodeci, and families like hers, find a place to call home."

Shinnston Celebrates a Decade of Blueprint Communities Revitalization

In 2007, the town of Shinnston, West Virginia, joined FHLBank's Blueprint Communities initiative, and that choice continues to pay dividends more than a decade later.

Town leaders received training and help to implement a comprehensive community revitalization plan. Thanks to FHLBank member WesBanco, the leaders were also connected to FHLBank funding to help put their ideas into action.

Within five years, Shinnston had attracted 12 new businesses. By year 10, the community had added apartment complexes, improved signage and landscaping, launched summer events in the park and updated a 16-mile walking trail for residents. Today, the town's growth shows no signs of slowing. "Without Blueprint, we would not have been able to accomplish this," said Kathleen Panek, City Clerk and Shinnston Blueprint Community team member.

LaReta Lowther, WesBanco’s Senior Vice President of Community Reinvestment Act Compliance – Community Development, agrees. "The town has participated in other initiatives before," she said, "but the Blueprint Communities training laid the groundwork for Shinnston's revitalization."

BOB Helps Child Care Center Expand in Allentown

By 2017, the Watch Us Grow Childcare Learning Center had been serving the child care and education needs of families in Allentown, Pennsylvania, for only a few years. The center was, however, already experiencing growing pains, with a long waiting list of families who wanted to take advantage of its services. When the tenant next door vacated, the building’s landlord offered the center a new 10-year lease that would more than double its existing space.

Watch Us Grow sought financing for the expansion from FHLBank Pittsburgh member Community First Fund, which offers entrepreneurs access to financing and technical assistance for projects that help to revitalize communities. In addition to arranging a government-guaranteed loan to the center, Community First Fund sought assistance from FHLBank’s Banking On Business (BOB) product. BOB was able to provide $35,000 in secondary financing to make the deal work.

"Financing this day care expansion right in the heart of Allentown is a perfect example of how collaboration in our communities creates jobs, child care opportunities and prosperity for owners and stakeholders," said John Scott, Vice President of Community First Fund. "Our loan to Watch Us Grow wouldn't have been possible without BOB."

With construction now completed, Watch Us Grow will soon employ up to 50 local workers and provide services to more than 500 children. Services include full-time day care, after-school programs and tutoring, and drop-in care. The center offers a curriculum that includes arts and crafts, dance and gymnastics. The fact that the center is open around the clock makes it especially appealing to parents who work third shifts or swing shifts.

"Our child care center fills a vital need in the community," said Jerresky Martinez, Watch Us Grow's CEO. "We're fortunate to be able to use Community First Fund and FHLBank Pittsburgh financing to expand our facilities and serve more families, challenging the minds of children today so they become leaders tomorrow."