Each year, the Bank commits 10 percent of its net profits to providegrants and subsidized, below market-rate loans through the AHP. "The awardswill help stimulate economic development during these tough times," saidMichael A. Jessee, the Bank's president and chief executive officer. "Icommend our member banks for their efforts to increase the stock of decentaffordable housing in our communities."

Congressman Peter Welch added, "As the financial situation worsens, wemust bolster our commitment to our most vulnerable neighbors, including thosein need of affordable housing, Vermonters must have access to affordablehousing, and it will require local support and community-based projects totackle this important challenge."

AHP funds are used to create or preserve affordable housing and help payconstruction, acquisition, or rehabilitation costs. Member financialinstitutions work with local developers to apply for AHP funding, awardedtwice a year through a competitive scoring process. The application deadlinefor the first round of next year's AHP awards is April 17, 2009.

The mission of the Federal Home Loan Bank of Boston is to support theresidential-mortgage and community-development lending activities of itsmembers, which include over 450 financial institutions across New England. Toaccomplish its mission, the Bank utilizes private-sector capital to providemembers and other qualified customers with reliable access to low-costwholesale funds, liquidity, a competitive outlet for the sale of loans,special lending programs, technical assistance, and other products andservices.

Information on the awards follows, and is also available athttp://www.fhlbboston.com/ahp.

Location: Burlington Member: Chittenden Trust Company Sponsor: Cathedral Square Corporation Units: 101 rental Subsidy: $794,547 grant and subsidy, $2.45 million advance Three Cathedral Square. Renovation of an existing downtown property toproduce 101 units of affordable, energy-efficient housing for very low- andlow-income seniors. Built in 1979, this initiative represents a significantportion of the city's affordable senior housing stock. Residents will continueto benefit from nearby transportation, a licensed health-care facility, and aresidents council. Chittenden Trust Company provides permanent financingthrough an AHP-subsidized advance. Additional funding will come from LowIncome Housing Tax Credits, the Department of Housing and Urban Development,and the Vermont Housing and Conservation Board.

Location: Enosburg Falls Member: Merchants Bank Sponsor: Vermont State Housing Authority Units: 30 rental Subsidy: $424,861 grant and subsidy, $425,000 advance River Bend Senior Housing. Acquisition and rehabilitation of an occupiedapartment building to preserve 30 units of senior housing for households at orbelow 60 percent of area median income. All units will be energy efficient anduse Section 8 subsidies to keep rents affordable. Residents will benefit frommanaged healthcare and an onsite resident coordinator, as well as theopportunity to participate in community organizing activities. Merchants Bankprovides permanent financing though the AHP-subsidized advance. Additionalfunding comes from Low Income Housing Tax Credit equity, the USDA, and theVermont Housing and Conservation Board.

Location: West Brattleboro Member: Chittenden Trust Company Sponsor: Housing Vermont Units: 21 rental Subsidy: $267,673 grant and subsidy, $225,000 advance Ann Wilder Richards Building Redevelopment. Acquisition of a vacantcommercial building to create 21 energy-efficient units of rental housing andcommercial space, cosponsored with Brattleboro Housing Authority. The studio,one-, and two-bedroom units will target seven very low-income households, 11low-income households, and three moderate-income households. Seven units areexpected to receive Section 8 operating subsidies. The development is adjacentto a Brattleboro Housing Authority senior housing development and will createa campus-type setting with many services, such as GED training,transportation, and after-school programs. Chittenden Trust Company providesthe permanent financing through the AHP-subsidized advance in addition toother permanent debt. Low Income Housing Tax Credit equity and Vermont Housingand Conservation Board are providing additional funding.

Location: Winooski Member: Opportunities Credit Union Sponsor: Burlington Housing Authority Units: 6 rental Subsidy: $208,960 grant and subsidy, $250,000 advance Webster House. Acquisition, renovation, and partial demolition of a six-unit historic downtown building to create affordable rental housing for verylow-income, formerly homeless individuals with disabilities. All units, whichwill be energy efficient, will benefit from project-based Section 8 funding.The sponsor is proposing a partnership with ReCycle North, which will use theproject as a training and demonstration site for their YouthBuild Program andrecycle all salvageable materials. Opportunities Credit Union provides thepermanent financing through the AHP-subsidized advance, as well as employmenttraining and financial literacy counseling. Vermont Housing and ConservationBoard, Burlington Housing Authority, and the City of Winooski provideadditional funds.

CONTACT: Mark S. Zelermyer

617-292-9750 mark.zelermyer@fhlbboston.comSOURCE Federal Home Loan Bank of Boston