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Scarborough Maine Real Estate - DOC

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					                                                                                         NEWS RELEASE
FOR IMMEDIATE RELEASE                                                          CONTACT: Mark S. Zelermyer
November 20, 2006                                                                             617-292-9750
                                                                              mark.zelermyer@fhlbboston.com

  MAINE AWARDED $3.6 MILLION IN FUNDING FOR AFFORDABLE
                        HOUSING

   ALFRED, BATH, SCARBOROUGH, AND VEAZIE INITIATIVES TO CREATE 92
                          RENTAL UNITS

BOSTON — The Federal Home Loan Bank of Boston (the Bank) awarded more than $3.6
million to fund 92 units of affordable rental housing in Alfred, Bath, Scarborough, and Veazie,
Maine. More than $1.6 million is in the form of a grant or advance subsidy. In all, 15 initiatives
in New England received almost $15.0 million in grants, loans, and rate subsidies as part of the
Bank’s Affordable Housing Program (AHP) to create or preserve 449 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. “The AHP is an important way the Bank, our
members, and local sponsors address the need for safe, decent affordable housing in New
England,” said Michael A. Jessee, the Bank’s president and chief executive officer. “This
round’s funds will help diverse population groups, including the elderly, the homeless, and the
disabled.”

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 27, 2007.

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.

                                                      —more—


 Federal Home Loan Bank of Boston       |     111 Huntington Avenue     |    Boston, MA 02199   |   617-292-9600
                                    |       FAX: 617-292-9645   www.fhlbboston.com



MAINE AWARDED $3.6 MILLION FOR AFFORDABLE HOUSING
Page 2 of 3
Information on the awards follows, and is also available at www.fhlbboston.com/ahp.

Location: Alfred, Maine
Member: Kennebunk Savings Bank
Sponsor: York County Shelters
Number and Type of Units: 8 rental units
Amount and Type of Subsidy: $50,000 grant

Shaker Hill Housing. New construction of eight single-room-occupancy units for very low-
income individuals with mental illness, substance-abuse problems, or other disabilities that have
contributed to repeated episodes of homelessness. Residents will benefit from extensive
supportive services including financial planning, transportation, participation on the residents’
council, and the ability to participate on the sponsor’s board of directors. This initiative
incorporates numerous high-performance, energy-efficient design and construction elements, and
contributes to community-organizing activities. The Brothers of Christian Instruction donated the
land through a 30-year ground-lease. Kennebunk Savings Bank is providing permanent debt, and
a right of first refusal will ensure continuance of use as affordable housing.

Location: Bath, Maine
Member: Bath Savings Institution
Sponsor: Tedford Shelter
Number and Type of Units: 6 rental units
Amount and Type of Subsidy: $358,000 grant

Evergreen Woods. New construction of six units of permanent rental housing for very low-
income, chronically homeless families. The property will be comprised of three three-bedroom
and three two-bedroom apartments. All residents will benefit from extensive services and
activities including financial planning, employment training, participation on the residents’
council, and the opportunity to participate on the sponsor’s board of directors. This initiative
reuses previously developed land, is accessible to public transportation, incorporates numerous
high-performance, energy-efficient elements, and contributes to community-organizing
activities. In addition to the AHP direct subsidy, Bath Savings Institution is providing
construction financing and a $10,000 grant. Other funding includes grants from HUD, the Maine
State Housing Authority, and owner equity.


Location: Scarborough, Maine
Member: TD Banknorth, N.A.
Sponsor: Housing Initiatives of New England
Number and Type of Units: 54 rental units
Amount and Type of Subsidy: $798,514 grant and subsidy, $1,890,000 advance

Bessey Commons Senior Housing. Acquisition and adaptive reuse of the former Bessey School
to create 14 apartments for the elderly. Forty additional apartments for the elderly will be created
in a new building linked to and compatible with the historic school structure. Thirty-three units
                                                more
MAINE AWARDED $3.6 MILLION FOR AFFORDABLE HOUSING
Page 3 of 3
will be designated for very low-income households and 21 units will be targeted to low-income
households. Residents will have the opportunity to participate in educational programs, on the
residents’ council, and the sponsor’s board of directors. This initiative also incorporates high-
performance, energy-efficient design and construction. The Town of Scarborough donated the
property. TD Banknorth, N.A. is providing construction financing and an AHP-subsidized
advance for permanent financing. Additional funding includes HOME funds, Low Income
Housing Tax Credit equity, and owner equity.

Location: Veazie, Maine
Member: Merrill Merchants Bank
Sponsor: Penquis Community Action Program, Inc.
Number and Type of Units: 24 rental units
Amount and Type of Subsidy: $436,798 grant and subsidy, $100,000 advance

Veazie Village Senior Housing. Construction of a 24-unit elderly development consisting of 20
one-bedroom and four two-bedroom units targeting 15 very low-income and nine low-income
elders. The development will be built in accordance with the Maine State Housing Authority’s
green-building standards. Supportive services include transportation, financial literacy and
planning, and the establishment of a residents’ council. Sources of funding include Low Income
Housing Tax Credits, Maine State Housing Authority Capital Subsidy Loan, and use of Maine’s
Tax Increment Financing District law, whereby the Town of Veazie will set up a Tax Increment
Financing District and return to the project 100 percent of annual real estate taxes for up to 30
years.

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