The Federal Home Loan Bank of Boston last week awarded a $300,000 grant to fund the construction of 24 units of affordable rental housing units for very low income elderly in Windham.

The 1.15-acre site is a portion of the Keddy Mill abandoned mill located in South Windham. The remainder of the site is being developed as condominiums. The design of the three-story structure, which invokes traditional New England architecture, encourages and supports independence, discourages isolation, and provides a safe and secure environment.

Avesta Housing will offer a wide range of supportive services, and residents will have access to nutritional, housekeeping, personal care, and health services, as well as affordable transportation and financial assistance. The property will be funded primarily through a capital advance from the HUD Section 202 program. Gorham Savings Bank is also providing a $3 million construction loan. AHP funds will be used for acquisition, construction, and rehabilitation.

In all, 12 initiatives in New England received more than $14.5 million in grants, loans, and rate subsidies as part of the Federal Home Loan Bank of Boston’s Affordable Housing Program (AHP) to create or preserve 361 rental and ownership units for very low, low, and moderate-income individuals and families. The Bank sets aside 10 percent of its net profits each year to provide grants and subsidized, below market-rate loans through the AHP.

“Members and their community partners turn to the AHP as an important resource for funding affordable housing,” said Michael A. Jessee, the Bank’s president and chief executive officer. “Together we’re helping to increase the supply of affordable housing throughout New England.”

“Maine has an affordable housing crisis, and the 24 affordable units this grant funds is a step toward meeting this challenge,” U.S. Representative Tom Allen said. “I am also pleased that Congress approved funding I requested for road and sewer improvements in Windham necessary for this development. I remain a strong supporter of the Federal Home Loan Bank of Boston, and will continue to work in Congress to ensure that it remains strong and provides resources for more important projects like this one.”

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.

Copy the Story Link