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					                                                                                         NEWS RELEASE
FOR IMMEDIATE RELEASE                                                          CONTACT: Mark S. Zelermyer
November 23, 2005                                                                             617-292-9750
                                                                              mark.zelermyer@fhlbboston.com

      SALEM, NH AWARDED FUNDS FOR AFFORDABLE HOUSING

                   INITIATIVE RECEIVES $1.2 MILLION FOR 24 UNITS

BOSTON — The Federal Home Loan Bank of Boston (the Bank) awarded more than $1.2
million to fund 24 units of affordable rental housing in Salem, New Hampshire. Of this amount,
$588,509 was in the form of a grant and advance subsidy. In all, 16 initiatives in New England
received nearly $9.7 million in grants, loans, and rate subsidies as part of the Bank’s Affordable
Housing Program (AHP) to create or preserve 284 rental and ownership units for very low-, low,
and moderate-income individuals and families.


Each year, the Bank sets aside 10 percent of its net profits to provide grants and subsidized,
below market-rate loans through the AHP. “In New England and elsewhere, demand for
affordable housing far exceeds the supply,” said Michael A. Jessee, the Bank’s president and
chief executive officer. “The Bank’s AHP provides members and developers much needed funds
to provide more New Englanders a safe, decent, and affordable place to live.”


United States Senator John Sununu, a member of the Senate Committee on Banking, Housing,
and Urban Affairs, said, “Senior citizens, the disabled, and low income individuals and families
deserve the security and peace of mind of knowing that safe and affordable housing will be
available to them if they need it. The many parties who have joined together on this initiative are
to be commended for their foresight in working to make this goal a reality.”




                                                      —more—


 Federal Home Loan Bank of Boston       |     111 Huntington Avenue     |    Boston, MA 02199   |   617-292-9600
                                    |       FAX: 617-292-9645   www.fhlbboston.com
SALEM, NH AWARDED FUNDS FOR AFFORDABLE HOUSING
Page 2 of 2

AHP funds are used to create or preserve affordable housing and help pay construction,
acquisition, or rehabilitation costs. Member financial institutions work with local developers to
apply for AHP funding, awarded twice a year through a competitive scoring process. The
application deadline for the first round of next year’s AHP awards is April 28, 2006.


The Federal Home Loan Bank of Boston (www.fhlbboston.com) is a cooperatively owned
wholesale bank for housing finance in the six New England states. Its mission is to support the
residential-mortgage and community-development lending activities of its members, which
include over 460 financial institutions across New England. To accomplish its mission, the Bank
utilizes private-sector capital to provide members and other qualified customers with reliable
access to low-cost wholesale funds, liquidity, a competitive outlet for the sale of loans, special
lending programs, technical assistance, and other products and services.


Information on the award follows, and is also available at www.fhlbboston.com/ahp.
Location: Salem, New Hampshire
Member: Salem Co-Operative Bank
Sponsor: Salem Housing Authority
Number and Type of Units: 24 rental units
Amount and Type of Subsidy: $588,509 grant and advance subsidy, $650,000 advance

Salem Elderly Housing. Acquisition and new construction of a 24-unit apartment building for
the elderly and disabled on town-donated land. The facility will provide 20 one-bedroom and
four two-bedroom units that will be affordable for 15 very low-income households and nine
households earning between 51 and 60 percent of the area median income. The limited
partnership will give a right of first refusal at the end of the tax credit period to the Salem
Housing Authority. Economic empowerment services include employment training, financial
planning, and transportation assistance. This initiative benefits from several smart growth
elements including access to transit services; density; high-performance, energy-efficient
housing; and resident-led crime watches. The member will provide construction financing and
the permanent debt through the AHP-subsidized advance. Additional funding includes Low
Income Housing Tax Credit equity and a grant from the New Hampshire Housing Finance
Authority.
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