Award recognizes M&T Bank's continuing commitment to affordable housing and community development
José R. González, president and CEO of the Federal Home Loan Bank of New York, announced the bank has recognized its member, M&T Bank, with the Community Pillar Award, which recognizes the institution's ongoing dedication to creating affordable housing opportunities in the communities it serves.
"Since making its first affordable housing program grant 25 years ago, M&T has become our most active partner in our community investment programs," González said. "The community support M&T provides assists households and families in Buffalo and Western New York, across the state, throughout our region and beyond. They are active supporters of the communities they serve - a true community bank. We are proud to honor M&T with our Community Pillar award, and even more proud to be their partner."
"Every day, my colleagues at M&T Bank work hard to help families and neighborhoods grow stronger, and the Federal Home Loan Bank of New York is an important partner and resource. Together, we have facilitated more than $111 million in additional investments within the communities we serve to develop new affordable housing units and provide mortgages to first-time homebuyers. We're honored to be recognized, and we're deeply grateful for your continued support of M&T's community-focused initiatives," said M&T Bank Chairman and CEO Robert G. Wilmers.
The Community Pillar Award was presented to M&T Bank at one of the projects it has supported, Hope Gardens, a supportive, permanent-living facility for homeless women, which received a $280,000 affordable housing program grant from M&T Bank and the Federal Home Loan Bank in 2011. The AHP was created by Congress in 1989, and provides member-lenders with direct subsidies, which are passed on to income-qualified households through sponsoring local nonprofit organizations. AHP financing is combined with other funding sources to create housing for moderate-, low- and very low-income families.
Program awardees receive this funding through a competitive application process. Each competing project must be sponsored by a financial organization that is a member of the bank in partnership with a community-based sponsoring organization. Since making its first grant in 1991, M&T Bank has partnered with the Federal Home Loan Bank to support 257 projects with $94.2 million in grants to help build or preserve 12,316 units of affordable housing. These projects have also generated an estimated $1.6 billion in total development costs, driving economic growth at the local level.
M&T Bank has also been very active in the Federal Home Loan Bank's "First Home Club," a program that was launched by the bank in 1995 to offer an incentive for households with incomes at or below 80 percent of area median income to save toward the purchase of a new home. The program is a non-competitive set-aside of the AHP and is administered through approved members of the HLB. The "First Home Club" provides down payment and closing cost assistance by granting $4 in matching funds for each $1 saved in a dedicated account (up to $7,500 in matching funds) to an eligible first-time homebuyer purchasing a home through one of the Federal Home Loan Bank's approved members.
In total, M&T Bank has accessed $17 million in grant funding to help 2,201 households become homeowners. M&T Bank currently supports more than 1,100 households enrolled in the "First Home Club" program.
M&T is a financial holding company headquartered in Buffalo. Its principal banking subsidiary, M&T Bank, operates banking offices in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia and the District of Columbia. Trust-related services are provided by M&T's Wilmington Trust-affiliated companies and by M&T Bank.