The Federal Home Loan Bank of Boston last week awarded $212,500 to Habitat for Humanity of Greater Bridgeport for the construction of new homes, including this 1,240-square-foot, three-bedroom house at 1383 Pembroke St. in Bridgeport.
A series of Habitat for Humanity homes in Bridgeport were among the Connecticut affordable housing projects that got a boost last week when The Federal Home Loan Bank of Boston awarded more than $1.2 million to fund affordable ownership and rental units across the state.
The bank awarded $212,500 to Habitat for Humanity of Greater Bridgeport for the construction of 17 ownership units. The project, part of which already is under way, includes 16 single-family homes and the renovation of an existing property. The lots and the property were all donated by the city of Bridgeport.
“[The award] is a helpful piece,” Habitat chapter President and Chief Executive Officer Robert Knebel said. “It provides us with some cash flow.”
Most of the new homes will be on the east side of Bridgeport and within a 10-block radius of each other. One unit, an existing property, will be a five- or six-room rehabilitation project. It is located in a newer section of Bridgeport called The Hollow.
Another of the projects on the east end of the city will be a duplex, Knebel said.
Five of the units are under construction.
The $12,500 per-unit subsidy will flow through to make the homes cheaper for the buyers, according to Knebel.
“It’s a win-win for us and a win-win for the homeowner,” he said.
According to the Federal Home Loan Bank of Boston, all the homebuyers will receive pre- and post-purchase homeownership counseling and services that promote economic empowerment, and participate in a Family Self-Sufficiency Program.
“The project achieves smart-growth goals by reusing property, providing access to public transportation and utilizing high-density design and high-performance building practices,” according to the FHLB.
The participating member bank, Westport-based Connecticut Community Bank, will finance the project’s construction debt in addition to providing the FHLB’s Affordable Housing Program direct subsidy, which will be used for construction, rehabilitation and other development costs.
The FHLB each year sets aside 10 percent of its net profits to provide grants and subsidized, below-market-rate loans through its Affordable Housing Program.
“In New England and elsewhere, demand for affordable housing far exceeds the supply,” said Michael A. Jessee, the FHLB’s president and chief executive officer, in a prepared statement. “The bank’s [Affordable Housing Program] provides members and developers much-needed funds to provide more New Englanders a safe, decent and affordable place to live.”
The funds are used to create or preserve affordable housing and help pay construction, acquisition or rehabilitation costs. The funding is awarded twice a year and member financial institutions work with local developers to apply for it. The application deadline for the first round of next year’s awards is April 28, 2006.
‘Positive Impact’
The FHLB also awarded money to projects in Fairfield, Ledyard and New Haven.
The largest of the awards – $392,689 – went to Operation Hope of Fairfield for the acquisition and construction of a former Navy-owned housing development to create eight units for very low-income residents. The units – called Jarvis Court – will be permanent supportive rental housing for formerly homeless households earning at or below 50 percent of the area median income.
The four houses on the property will be demolished to create four two-family homes. Future tenants will have a diagnosed mental health condition and some may have a co-occurring substance addiction. Operation Hope of Fairfield will provide employment training, financial literacy workshops and small-business training to residents. The member bank, Waterbury-based Webster Bank, is providing a $400,000 permanent loan and the Affordable Housing Program funds will be used for construction and rehabilitation.
In Ledyard, the FHLB awarded a $100,355 grant to Habitat for Humanity of Southeastern Connecticut for the construction of four ownership units. The project, which is called Colonial Arms, will be new construction of four detached, single-family homes on donated land. The homes will be sold to very low-income, first-time homebuyers. Two of the households that will be served are previously homeless and all four will receive services that promote economic empowerment, including pre- and post-purchase homeownership counseling, financial literacy training and training related to the provision of sweat equity in the homes.
“The project achieves the smart-growth goal of utilizing high-performance building practices,” according to the FHLB.
The FHLB member bank, Middletown-based Liberty Bank, will provide the project with both a line of credit and the Affordable Housing Program direct subsidy, and AHP funds will be used for costs associated with construction, rehabilitation, developer fees and other development costs.
The fourth award of a $125,000 grant went to the Neighborhood Housing Services of New Haven for the acquisition and rehabilitation of four blighted houses located in the city’s Hill neighborhood and one located in the Beaver Hill neighborhood.
The homes will be sold to very low-income, first-time homebuyers. The member bank providing permanent financing is Bridgeport-based People’s Bank.
“The need for high-quality affordable housing in Fairfield County and other parts of Connecticut cannot be overstated and I am so grateful for these Federal Home Loan Bank grants,” said Congressman Christopher Shays, R-Bridgeport, in a prepared statement. “I am particularly pleased to know the grants were awarded to Habitat for Humanity of Greater Bridgeport and Operation Hope, two local organizations that have made a huge and positive impact in our community.”
