Congressman Kanjorski, Mayor Rockovich Unveil $650,000 Grant: Plans for conversion of former school site to affordable housing get boost

Posted by RealEstateRama

July 1, 2008

West Hazleton Borough, PA, July 1, 2008 - Congressman Paul E. Kanjorski (PA-11) and West Hazleton Mayor Mark Rockovich today announced the final piece of funding needed to convert the old E. A. Encke Elementary School site to a new affordable housing complex serving the elderly.

The $650,000 grant, from the Federal Home Loan Bank of Pittsburgh (FHLBank) and provided through Luzerne Bank, represents the remaining 16 percent of funding needed for the project, which will create 30 apartments for seniors and the disabled with incomes at or below 80 percent of the area median income. The amount granted was the maximum possible under recently-revised funding guidelines at FHLBank, a congressionally-chartered wholesale bank that uses private dollars in pursuit of its public mission of affordable housing and community and economic development. Only ten of 26 projects funded across Delaware, Pennsylvania and West Virginia by FHLBank’s Board of Directors on June 20 received this new, maximum grant award.

“I am pleased to be able to announce this funding so work can continue on the creation of 30 units of much-needed rental housing for some of our area’s most needy citizens,” said Congressman Kanjorski, Chairman of the House Financial Services Committee’s Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises. “Mayor Rockovich, the Housing Authority of Luzerne County, Luzerne Bank and the Federal Home Loan Bank of Pittsburgh are to be commended for their first-rate stewardship in ensuring that this vital project is fully funded and can proceed on schedule.”

Congressman Kanjorski’s Subcommittee has jurisdiction over the Federal Home Loan Banks.

“We thank Luzerne Bank for helping guide us through the grant application process so we could make the strongest possible case for these funds,” said Mayor Rockovich at the announcement, held in City Council Chambers. “We are honored to receive the maximum amount available for such funding. Now, it’s full speed ahead.”

The new apartment complex, to be built on Madison Avenue, addresses a chronic need.

“The Borough of West Hazleton currently has no housing for seniors with incomes at or below 80 percent of the area median income,” said Dave Fagula, the housing authority’s executive director. “However, the senior population in West Hazleton stands at 26 percent, compared to 22 percent for all of Luzerne County and 18 percent for the entire state. Further, all current subsidized housing in the area is full, with a long waiting list. This project will help close a major gap in affordable housing.”

The housing authority, which serves as project sponsor, has successfully developed and manages 22 buildings consisting of 1,342 units of affordable housing. The project’s architect, The A+E Group, also has extensive experience in the design and construction management of such projects.

Pending approval of zoning variances, construction is expected to begin this fall, with completion by the end of 2009.

A broad range of financial support

Chartered by Congress in 1932, FHLBank Pittsburgh, one of 12 regional Banks comprising the FHLBank system, delivers low-cost and at-cost loans as well as grants to the 333 financial institution members of its private cooperative so a steady stream of money is available to strengthen communities during all economic cycles.

FHLBank liquidity, which helps fund local mortgages, also plays a special role during periods of market disruption. The Bank has made a record number of low-cost loans to community financial institutions in recent months in order to pump sufficient liquidity into local banking markets during a period of severe credit tightening. As of March 31, 2008, FHLBank had $105 billion in assets.

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