Federal Home Loan Bank of Boston has awarded a $441,244 grant to help rehabilitate Friendship Hill House Apartments in Biddeford. The program is an affordable housing initiative which works with those with mental illness. FILE PHOTO

BIDDEFORD — Federal Home Loan Bank of Boston has awarded $441,244 in grants, loans, and interest-rate subsidies to support an affordable housing initiative in Biddeford.

The grant provides an acquisition loan for Bangor Savings Bank to subsidize rehabilitation of Friendship Hill House’s Phase II project, a three-story apartment building consisting of seven two-bedroom units and two one-bedroom units, plus a separate unit serving as office space, for people with mental illness.

There are four first-floor units, three second-floor units, and two third-floor units. The first floor features a unit that is compliant with the Americans with Disabilities Act.

This project will continue to improve the Friendship Hill House building and add efficiencies, addressing health and safety, energy efficiency, programmatic space, and improving access.

Improvements will have a direct effect on the nine residents who currently have homes at Friendship Hill House. The Intensive Residential Treatment program used by Friendship Hill House provides services for adults with severe and persistent mental illness.

The program provides an alternative to hospitalization by creating homes for clients that include one-on-one care in their own apartments. Bangor Savings Bank will provide an acquisition loan.

As part of this funding round, FHL Bank of Boston awarded nine Maine projects more than $15.3 million for 287 affordable units of rental and ownership housing throughout the state.

The funds were awarded to projects through financial institutions in the region that are members of FHLBank Boston.

“In partnership with our member financial institutions, we are proud to provide this funding which greatly benefits individuals and families struggling to afford housing and supports economic development throughout New England,” said Edward A. Hjerpe III, FHLBank Boston president and chief executive officer.

Member financial institutions work with local developers to apply for funding, which is awarded through a competitive scoring process.

The Federal Home Loan Bank of Boston is a cooperatively owned wholesale bank for housing finance in the six New England states. Its mission is to provide highly reliable wholesale funding and liquidity to its member financial institutions in New England. The Bank also develops and delivers competitively priced financial products, services, and expertise that support housing finance, community development, and economic growth, including programs targeted to lower-income households.

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