January 14 – The Community Loan Fund of the Capital Region is now a member of the Federal Home Loan Bank of New York (FHLBNY). The Federal Home Loan Bank of New York is a major financier for affordable housing and community development loans across New York, New Jersey, Puerto Rico and the Virgin Islands. The Community Loan Fund is one of just six CDFIs in New York who are members of the Federal Home Bank of New York.
“Housing discrimination has made an impact on our region, which also struggles with income inequality and years of neglect brought on by the redlining of city neighborhoods,” says Linda MacFarlane, Executive Director of the Community Loan Fund of the Capital Region. “Our partnership with the Federal Home Loan Bank of New York will put us in an even stronger position to address these issues, and to help us create more affordable homes for working families.”
“At the Federal Home Loan Bank of New York, we know the importance of creating and preserving access to affordable housing for all, and that is why we are proud to welcome the Community Loan Fund to our cooperative,” said José R. González, president and CEO of the FHLBNY. “It is our belief that the funding access and products we offer our members will help the Community Loan Fund further its mission, benefitting households and communities across our region.”
The Community Loan Fund started 35 years ago chiefly to address the affordable housing gap in Albany; studies show that in the Capital Region, 46.4% of families are rent burdened, spending more than 30% of their income on rent. Twenty-four percent are severely rent burdened, meaning that 50% of their income goes to rent.
Unfortunately, affordable housing developers face significant challenges when it comes to financing projects in this market, including higher than average construction costs and limited funder options, making it hard to create stable, affordable housing for residents.
The Community Loan Fund helps affordable housing developers by providing term loans and lines of credit for property acquisition, predevelopment, and construction. They also provide low- and moderate-income homebuyers with financing to bring abandoned and neglected properties up to code.
To date, CLFCR has provided $20.5 million in affordable housing financing, which has leveraged more than $163 million and created, preserved or rehabilitated 1,569 units of housing.