BOSTON – The Federal Home Loan Bank of Boston has awarded more than $1.6 million to fund 57 units of affordable rental housing in Newport, including $560,000 in the form of grants and subsidies, as part of a program that is now supporting 17 initiatives across New England.
A $42-billion, cooperatively owned wholesale bank, Federal Home Loan supports the residential-mortgage and community-development lending activities of its members, which include over 460 financial institutions across New England.
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In this case, Federal Home Loan is providing a $300,000 grant as well as $1.1 million to be used by the Bank of Newport to provide permanent financing through the purchase of tax-exempt bonds.
The project entails the demolition of 91 substandard housing units in a large, subsidized housing development to create 71 units of mixed-income housing, including 57 for very low-income and low-income households.
The initiative is the third phase of a plan to rebuild Newport’s Tonomy Hill neighborhood, which includes a redesign to better integrate the site with the surrounding residential neighborhood. The development will be built on land donated by the Housing Authority of the City of Newport through a 75-year ground lease.
Residents will receive comprehensive supportive services, including family self-sufficiency programs, employment resources, and case management. They will also have opportunities to participate in management through a residents’ council and a formal grievance committee.
Federal Home Loan sets aside 10 percent of its net profits each year to provide grants and subsidized, below market-rate loans for projects such as this.
“Affordable housing is a cornerstone of the Federal Home Loan Bank of Boston’s mission,” said Michael A. Jessee, president and CEO, in a news release. “We are proud of the program’s record of bringing people together to help alleviate the housing-affordability crisis.”
Senator Lincoln D. Chafee hailed the bank’s support of the “continued expansion of this vibrant new community.”
“As Newport Heights rises from the dust of Tonomy Hill,” Chafee said, “we’re seeing a new form of public housing – one that offers families stability, hope, and opportunities for economic independence.”
