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Newburgh, NY - Congressman Maurice Hinchey (D-NY) today announced a $70,000 federal grant to Habitat for Humanity of Greater Newburgh that will pay for the construction and renovation of homes for seven low-income, local families. Joining Hinchey for the announcement were officials involved in the securing and administering of the grant, including Al DeSalvo, Capital Region CRA Officer for M&T Bank; Michael Graham, Sr. Business Development Officer for M&T Bank; Deirdre Glenn, Executive Director, Habitat for Humanity of Greater Newburgh; Peter King, Affordable Housing Officer, Federal Home Loan Bank of New York (FHLB-NY); and Newburgh Mayor Nick Valentine; and members of the City of Newburgh Council.
"These funds will allow seven hardworking Newburgh families to finally have a home they can call their own," Hinchey said. "When people own their own home, they have a much greater stake and interest in their neighborhood and their community. Increasing rates of home ownership helps to reduce crime and urban blight, protect and improve the quality of life in our local area and provide economic stability and opportunity for local families. I'm very grateful that Newburgh has received these funds, which will certainly complement and strengthen our efforts to revitalize the city and stabilize neighborhoods throughout Newburgh."
The $70,000 FHLB-NY Affordable House Program (AHP) grant will be awarded through M&T Bank to help Habitat for Humanity renovate or construct seven units of affordable, owner-occupied housing. Habitat will refurbish four abandoned, boarded-up buildings that it has purchased from the City of Newburgh and sell those to eligible, low income families at a reduced cost. This funding will also assist Habitat to construct three additional homes at the site of an abandoned auto body shop. Habitat has worked with the city to clean up this property, demolish the deteriorated buildings on the property, manage the environmental cleanup of the site and subdivide the property into three building lots for new homes. Additional financing for this effort will be provided through private donations and Habitat fundraising.
Eligible families in the Habitat homeowner program have completed 250 hours of work or "sweat equity" and participated in a series of classes on financial management, financial literacy, home maintenance, neighborhood responsibilities, safety and the legal aspects of homeownership. To ensure successful homeownership, Habitat for Humanity will also appoint two advocates for each family to provide support as the family makes the transition to home ownership.
Deirdre Glenn, Executive Director for Habitat for Humanity of Greater Newburgh said, “Habitat is a homeowner program. The principles of homeownership, a no-profit selling price and a no-interest mortgage, are at the heart of Habitat’s vision. The importance of strong neighborhoods is essential to our mission. Rebuilding our neighborhoods, however, does cost money and the support of programs such as the Federal Home Loan Bank not only reduces the cost of buying a home for the homeowner, but fuels our building efforts by providing financial incentive to keep building.”
Newburgh's Habitat for Humanity organization has been tremendously successful in its efforts and has been a critical partner in the revitalization of the City of Newburgh. Habitat has completed 23 houses in the east end of the City of Newburgh and will complete three more during this calendar year. The organization is currently working on six to seven projects at a time and has set a goal be in a position to construct or renovate 10 houses a year by 2009.
Habitat's partner families are working families in the Greater Newburgh area. Despite holding down a job -- or in many instances, two or three jobs per family-- Habitat's families are still in the low income range, earning between 25-50 percent of the median income for the area. These families cannot afford the average rent in Newburgh and often have to forgo food, clothing, heath care and childcare just to maintain a roof over the family.
M&T Bank is a frequent partner with Habitat for Humanity and FHLB-NY in providing much needed affordable housing for Hudson Valley residents. M&T Bank has been actively committed to helping make home ownership attainable for low-income families. M&T Bank, celebrating 150 years of service, is the principal banking subsidiary of M&T Bank Corporation, one of the 20 largest bank holding companies in the U.S. with over $55 billion in assets and more than 650 branches.
“We’re pleased to join M&T Bank to announce this $70,000 affordable housing grant to Habitat for Humanity of Greater Newburgh,” said Alfred A. DelliBovi, President of the Federal Home Loan Bank of New York. “This grant housing is made possible in large measure because of the support and leadership of Congressman Hinchey.”
The FHLB Affordable Housing Program was created by Congress in 1989. Under AHP, the FHLB-NY provides member lenders with grants that are passed on to income-qualified households through sponsoring local organizations. AHP financing is combined with other funding sources to create housing for moderate, low, and very low- income families. Program awardees receive their funding through a competitive application process. Each competing project must be sponsored by a financial organization that is a member of the Bank in partnership with a community-based sponsoring organization.
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