Federal Home Loan Bank of New York Has Made $120 Million in Affordable Housing and Community Development Support Available Through First Four Months of 2024
May 08 2024 - 4:34PM
The Federal Home Loan Bank of New York (“FHLBNY”) announced that
through the first four months of 2024, it has made available $120
million in support for affordable housing and community development
efforts through a number of programs that will be funded this year:
- On January 8, the FHLBNY launched the 2024 Round of its
Homebuyer Dream Program® (“HDP®”) with $28.9 million in available
grants. The HDP is a Homeownership Set-Aside program managed within
the FHLBNY’s Affordable Housing Program and provides grants to be
used towards down payment and closing cost assistance to first-time
homebuyers earning at or below 80% of the Area Median Income
(“AMI”).
- On March 18, the FHLBNY opened the inaugural Homebuyer Dream
Program Plus (“HDP Plus”) round with $10.3 million in available
grants. The HDP Plus program is complementary to the HDP, and
provides funding support for down payment and closing cost
assistance to first-time homebuyers earning between 80% and
120-150% of AMI.
- On March 18, the FHLBNY also launched the second round of its
0% Development Advance (“ZDA”) Program, which provides members with
subsidized funding in the form of interest rate credits to assist
in originating loans or purchasing loans/investments that meet the
eligibility criteria under its Business Development Advance,
Climate Development Advance, Infrastructure Development Advance
and/or Tribal Development Advance products. The FHLBNY made $10
million in interest rate credits available in the current ZDA
Program round.
- And on April 22, the FHLBNY opened the 2024 General Fund Round
of its Affordable Housing Program (“AHP”) with a total of $70.8
million in grant funds available. The AHP was created by Congress
in 1989, and each year since 1990 the FHLBNY has set aside at least
10% of its private earnings to support the creation and
preservation of housing for lower income households and individuals
through AHP grants.
“Our foundational mission is to provide our members with a
reliable source of liquidity, which supports their local lending
efforts and positions us to make the broadest possible impact in
the communities we serve,” said José R. González, president and CEO
of the FHLBNY. “But we also take great pride in being able to make
a more direct and targeted impact through our housing and community
development programs and products. These offerings are funded by
our earnings and incorporated into our strategy, reflecting a
commitment to strengthening communities that runs through our
entire cooperative.”
Each Federal Home Loan Bank is required by statute to contribute
a minimum of 10% of net income to its Affordable Housing Program,
which for the FHLBNY also includes the Homebuyer Dream Program. In
2023, each of the 11 Federal Home Loan Banks voluntarily agreed to
contribute a total of 15% of its net income to affordable housing
and community development initiatives on a go forward basis. The
FHLBNY has allocated 15% of its 2023 net income to fund these
initiatives for 2024 – starting with the available funding
announced in the first four months of the year.
“As we move through the rest of 2024, we will continue to
identify opportunities to join with our members and community
partners to fund efforts that support housing and community
development throughout our region,” said Mr. González.
On May 7, the Council of Federal Home Loan Banks announced that
the Federal Home Loan Banks expect to collectively contribute
approximately $1 billion toward affordable housing and community
development initiatives in 2024, firmly establishing the Federal
Home Loan Bank System as one of the largest sources of private
funding for affordable housing in the country.
About the Federal Home Loan Bank of New YorkThe
Federal Home Loan Bank of New York is a Congressionally chartered,
wholesale Bank. It is part of the Federal Home Loan Bank System, a
national wholesale banking network of 11 regional,
stockholder-owned banks. As of March 31, 2024, the FHLBNY serves
336 member institutions in New Jersey, New York, Puerto Rico, and
the U.S. Virgin Islands. The FHLBNY’s mission is to provide members
with reliable liquidity in support of housing and local community
development.
Safe Harbor Statement Under the Private Securities
Litigation Reform Act of 1995This report may contain
forward-looking statements within the meaning of the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995.
These statements are based upon our current expectations and speak
only as of the date hereof. These statements may use
forward-looking terms, such as “projected,” “expects,” “may,” or
their negatives or other variations on these terms. The Bank
cautions that, by their nature, forward-looking statements involve
risk or uncertainty and that actual results could differ materially
from those expressed or implied in these forward-looking statements
or could affect the extent to which a particular objective,
projection, estimate, or prediction is realized. These
forward-looking statements involve risks and uncertainties
including, but not limited to, the Risk Factors set forth in our
Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q
filed with the SEC, as well as regulatory and accounting rule
adjustments or requirements, changes in interest rates, changes in
projected business volumes, changes in prepayment speeds on
mortgage assets, the cost of our funding, changes in our membership
profile, the withdrawal of one or more large members, competitive
pressures, shifts in demand for our products, and general economic
conditions. Forward-looking statements speak only as of the date
they are made, and we undertake no obligation to revise or update
publicly any forward-looking statements for any reason.
CONTACT: |
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Brian Finnegan(212) 441-6877brian.finnegan@fhlbny.com |