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FEDERAL HOME LOAN BANK OF PITTSBURGH PROVIDES FUNDING TO SUPPORT $24.7 MILLION OF LOW-COST HOUSING IN DISTRICT

 PITTSBURGH, March 31 /PRNewswire/ -- Seventeen low-income housing programs were awarded funding today under the Federal Home Loan Bank of Pittsburgh's Affordable Housing Program (AHP), announced bank President James D. Roy.
 "Our $2 million in subsidies to member institutions will help to finance 457 units of affordable housing in Delaware, Pennsylvania and West Virginia," Roy said. Total development costs are $24.7 million.
 The Federal Home Loan Bank's Affordable Housing Program provides member institutions with below-market-rate loans and direct grants that they pass on to qualified project developers. Eleven lead lenders, three additional member institutions and 17 community-based-organization (CBO) sponsors were awarded funding for 17 projects. Eight additional non-member lenders and two CBO co-sponsors also were participants. AHP financing is combined with other funding sources to create housing for moderate-, low-, and very-low-income families. The programs chosen for funding include new construction and rehabilitation projects.
 "It is gratifying to be able to help lower-income families to improve their circumstances," said Roy. "I'm especially pleased that these projects will also meet special needs."
 Almost 75 percent of the units are earmarked for very-low-income families. Among the programs funded are those that provide a place to live for families who would otherwise be homeless, and group housing for persons who have a history of mental illness. Single- and multi-family dwellings are available; some units are available for purchase, often by first-time home buyers. The projects serve rural and urban areas.
 Program sites in Pennsylvania are: Chester, Collegeville, Coplay, Easton, Erie, Fleetwood, Morrisville, Norristown, Oxford, Philadelphia, and Topton. Delaware's project is in Wilmington, and West Virginia's two projects are at sites scattered throughout Kanawha and Putnam counties.
 Since AHP began in 1990, the Pittsburgh bank has awarded $10.5 million in subsidies for housing in the district's three states, Delaware, Pennsylvania and West Virginia. That amount, leveraged with funding from other sources, has resulted in $110.9 million in development, representing 2,204 affordable housing units. The total bank subsidy available for 1993 is $3.6 million. A second round of funding is now open and closes July 15.
 Projects must meet certain criteria in order to compete for funding. Priority is given to projects that set aside a high percentage of units for very-low-income residents and that promote community stability.
 Federal Home Loan Bank of Pittsburgh is part of the Federal Home Loan Bank System, a national network of 12 regional, stockholder-owned banks created by the U.S. Congress in 1932 to promote home finance. The bank's economical funding and correspondent operating services are available to all financial institutions, including thrifts, banks, credit unions and insurance companies. With assets of more than $10 billion, the Pittsburgh bank serves financial institutions in Delaware, Pennsylvania and West Virginia.
 AHP has provided approximately $201.6 million in subsidies nationwide since its inception. This has resulted in more than $2.7 billion for development of about 55,291 housing units.
 Following is a summary of the 17 funded projects.
 SUMMARY OF LENDING
 -- Pennsylvania
 Project Location: Chester
 Lead Lender/Lender City: First Keystone Federal Savings Bank/Media
 Sponsoring Organization: Chester Community Improvement Project
 Project Description: The Chester Revitalization Initiative project will make 10 rehabilitated single-family units available to first-time home buyers, five with very low incomes. Nine will be vacant properties purchased from Housing and Urban Development (HUD). They will be at scattered sites within the Highland Gardens and Buckman Village neighborhoods. Mandatory mortgage counseling will be provided to all purchasers. Total development costs of $484,000 will be subsidized by $45,000 from the bank.
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 Project Location: Collegeville
 Lead Lender/Lender City: Commonwealth Federal Savings Bank/ Valley Forge
 Sponsoring Organization: Community Housing Services and St. Peter's Place
 Project Description: The Stephanie Lane project involves the purchase of land for construction of 24 single-family units. The units will be lease/purchased by very-low-income families, individuals or families who are homeless, and women who have been battered. Support services will be provided to residents. Pennsylvania Housing Finance Agency (PHFA) funding is involved. Total development costs of $2.717 million will be subsidized by $72,000 from the bank.
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 Project Location: Coplay
 Lead Lender/Lender City: Greater Bethlehem Savings and Loan Association/Bethlehem
 Sponsoring Organization: Episcopal Ministries of the Diocese of Bethlehem, Inc.
 Project Description: The Columbia Hotel project will rehabilitate 21 rental units, 20 for very-low-income residents. Twenty of the units are for single-room occupancy. Occupants will share six bathrooms, a living room, television room, laundry room, recreation room and outside patio. About half of the units will be rented to persons with a history of mental illnesses, and the other half is intended for persons with histories of employment difficulties, substance abuse or chronic physical health problems. Twenty units are to be occupied by persons who would otherwise be homeless. The program will provide case-management services to assist residents in adjusting to independent living. Total development costs of $445,000 will be subsidized by $82,000 from the bank. PHFA funds also will be used, as well as low-income tax credits.
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 Project Location: Easton
 Lead Lender/Lender City: Valley Federal Savings and Loan Association/Easton
 Sponsoring Organization: City of Easton
 Project Description: The Restlawn project involves the rehabilitation and sale of 22 units and the rehabilitation of 11 rental units. Fifteen units are earmarked for very-low-income households. Units will be sold below market value, and home buyers will receive assistance with closing costs and downpayments. The total development costs of $1.460 million will be subsidized by $139,000 from the bank. This project serves single heads of households, the homeless and first-time home buyers. This program will also involve funds from Department of Consumer Affairs, Commonwealth of Pennsylvania (DCA).
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 Project Location: Erie
 Lead Lender/Lender City: Northwest Savings Bank/Erie
 Sponsoring Organization: Stairways
 Project Description: The Stairways Supervised Group Housing Project involves the modular construction of three scattered site supervised group living facilities for adults with mental illnesses. Each building will be occupied by eight residents, who will each have a separate bedroom and bath. All 24 units will be rented to very-low-income residents. There will be common living and eating areas, supervised 24 hours a day. Personal care technicians will be responsible for cooking, housekeeping and maintenance. Clinical staff will be assigned to manage clients' mental health issues. Total development costs of $567,000 will be subsidized by $104,000 from the bank.
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 Project Location: Fleetwood
 Lead Lender/Lender City: Sovereign Bank, FSB/Wyomissing
 Sponsoring Organization: Tarsus Manor, Inc.
 Project Description: The Fleetwood Senior Citizens Housing Project will be a newly constructed 33-unit facility. All units will be rented by very-low-income residents. The project will serve a rural community. Total development costs of $1.8 million will be subsidized by $99,000 from the bank. PHFA funding also will be used. Low-income housing tax credits will be utilized as well as funds from DCA.
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 Project Location: Morrisville
 Lead Lender/Lender City: First Federal Savings and Loan Association of Bucks County/Bristol
 Sponsoring Organization: Better Homes, Inc. of Bucks County
 Project Description: The Towpath House Apartments, a deteriorated vacant building, will be acquired and rehabilitated to provide 18 rental units. Nine will house very-low-income residents. Persons who are homeless, disabled and single heads of households will live in the development. Residents will be asked to serve on a grievance committee. The project, which involves the purchase of Federal Home Loan Mortgage Corporation property, will be undertaken in conjunction with PHFA. Total development costs of $1.346 million will be subsidized by $62,000 from the bank. Funds are also provided by DCA and the Bucks County Home Program.
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 Project Location: Norristown
 Lead Lender/Lender City: Commonwealth Federal Savings Bank/ Valley Forge
 Sponsoring Organization: Norristown Habitat for Humanity, Inc.
 Project Description: Developers of the Norristown Habitat for Humanity project will acquire and rehabilitate three existing abandoned homes at scattered sites for first-time home buyers. Buyers will be required to provide "sweat equity" by participating in the rehabilitation. Two of the homes will be for purchase by very-low-income buyers. The $173,000 total development cost will be subsidized by $12,000 from the bank.
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 Project Location: Oxford
 Lead Lender/Lender City: Commonwealth Federal Savings Bank/ Valley Forge
 Sponsoring Organization: Neighborhood Services Center, Inc.
 Project Description: A former hotel property will be acquired and converted/rehabilitated into 22 rental units for very-low-income residents who are elderly and disabled. The Oxford Apartments' total development cost will be $2.417 million, which will be subsidized by $88,000 from the bank.
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 Project Location: Philadelphia
 Lead Lender/Lender City: Commonwealth Federal Savings Bank/ Valley Forge
 Sponsoring Organization: Philadelphia Rehabilitation Plan, Inc. (PRP)
 Project Description: The PRP Homeownership Program II will expand PRP's ongoing program by assisting in the rehabilitation and/or the purchase and rehabilitation of 60 units at sites throughout the city. Forty will be set aside for very-low-income residents. Families that apply to PRP either already own the properties or have identified the property they wish to acquire. The project serves a variety of special need groups. Total development costs of $2.520 million will be subsidized by $240,000 from the bank.
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 Project Location: Philadelphia
 Lead Lender/Lender City: Commonwealth Federal Savings Bank/ Valley Forge
 Sponsoring Organization: Philadelphia Community Rehabilitation Corp.
 Project Description: The Rachel Bagby Shared House project in 1988 restored and converted two adjoining, three-story residences into a 12-unit "shared house" rented by very-low-income tenants, including persons who are disabled and/or elderly. Now fully occupied, it requires a major upgrade for its heating system. Total development costs of $26,000 will be fully subsidized from the bank.
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 Project Location: Philadelphia
 Lead Lender: Commonwealth Federal Savings Bank/Valley Forge, and a consortium of member lenders including William Penn Savings and Loan Association/Levittown, National Bank of the Main Line/Wayne, Regent National Bank/Philadelphia
 Sponsoring Organization: Delaware Valley Community Reinvestment Fund (DVCRF)
 Project Description: The DVCRF Long-Term Affordability Fund I project creates a pool of money that will be loaned to various community-based organizations for new construction or rehabilitation of 60 housing units at scattered sites. Priority will be given to housing developments that utilize government properties. Twenty-five of the units will be occupied by very-low-income residents. Twelve units will be available for purchase, and 48 will be maintained as rental units. All residents will receive housing and/or pre-purchase counseling. This housing is intended to serve the needs of single heads of households and persons who are homeless. The $1.9 million development costs will be subsidized by $250,000 from the bank.
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 Project Location: Philadelphia
 Lead Lender/Lender City: Firstrust Savings Bank/Philadelphia
 Sponsoring Organization: Clergy Housing Support Group, Inc.
 Project Description: Tioga Gardens will be a 30-unit multi-family rental project in North Philadelphia. It includes 24 units of modular new construction and six rehabilitated units. Half of the units are earmarked for very-low-income residents, and six apartments will be set aside at subsidized rates to provide permanent housing for homeless families that currently are living in transitional housing. Fifteen units will be occupied by single heads of households; three by elderly; two by handicapped. The total development costs of $2.832 million will be subsidized by $150,000 from the bank. PHFA monies also will be used. Low-income housing tax credits will be involved.
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 Project Location: Topton
 Lead Lender/Lender City: Sovereign Bank, FSB/Wyomissing
 Sponsoring Organization: The Lutheran Home at Topton and Topton Apartment Associates
 Project Description: The Topton Apartments for the Elderly project involves the conversion of an old mill into 18 rental units. Some new construction also will be required. All units are intended for very-low-income residents. Self-help programs will be available to enable residents to remain independent. Financial counseling and health education and screening will be offered, and a tenant association will be established. The project will serve a rural area. Total development costs of $1.170 million will be subsidized by $73,000 from the bank through a combination of loan and grant. PHFA and DCA funds also will be used.
 -- West Virginia
 Project Location: Kanawha and Putnam counties; Charleston and Hurrican
 Lead Lender/Lender City: Charleston National Bank/Charleston
 Sponsoring Organization: Mountaineer Habitat for Humanity, Inc.
 Project Description: This project involves the purchase of the current value of existing Mountaineer mortgages to allow the funding of five new rural homes at scattered sites. The sponsoring group eventually will purchase these mortgages, as well. Each home will be purchased by a very-low-income buyer. Buyers provide "sweat equity" by helping with construction. Total development costs of $256,000 will be subsidized by $34,000 from the bank.
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 Project Location: Kanawha and Putnam counties; Charleston, St. Albans and Hurrican
 Lead Lender/Lender City: First Empire Federal Savings and Loan Association/Charleston
 Sponsoring Organization: Mountaineer Habitat for Humanity, Inc.
 Project Description: Mountaineer Habitat will purchase the current value of existing Mountaineer mortgages to fund the construction of 30 more homes. The group eventually will purchase these mortgages as well. Each home will be purchased by a very-low-income buyer. Ten of the families will have been homeless; 10 are handicapped; all are first-time home buyers. Buyers provide "sweat equity" by helping with construction. Total development costs of $1.585 million will be subsidized by $230,000 from the bank.
 -- Delaware
 Project Location: Wilmington
 Lead Lender: Ninth Ward Savings Bank/Wilmington, and a consortium of eight other non-member financial institutions
 Sponsoring Organization: Interfaith Housing of Delaware and St. Andrews Episcopal Church
 Project Description: 701 Shipley St. will be rehabilitated into 54 single-room rental units, all for very-low-income residents. Each residential floor will have a lounge area, a mini-kitchen and a full kitchen. A dining area will occupy a separate floor. In general, two units will share a bath. All units are to be occupied by persons who otherwise would be homeless. The ground floor of the building will house a "bread and coffee house," which will employ as many as 25 persons. The now-vacant building formerly was a Sears store and a United Way headquarters. The total development costs of $3.052 million will be subsidized by $345,000 from the bank.
 -0- 3/31/93
 /CONTACT: Rosemary A. Abendroth of Federal Home Loan Bank of Pittsburgh, 412-288-2830/


CO: Federal Home Loan Bank of Pittsburgh ST: Pennsylvania, West Virginia, Delaware IN: FIN SU:

DM-KC -- PG003 -- 1351 03/31/93 08:48 EST
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