HIGHTSTOWN, N.J. (11/13/12)--In response to the extensive damage caused by Hurricane Sandy, the Federal Home Loan Bank of New York (FHLBNY) is making $1 billion in disaster relief funding available to nearly 340 community-based lenders, including credit unions, to help rebuild communities in New Jersey and New York designated by FEMA as disaster areas.
The funds are being made available by the FHLBNY through its Community Lending Programs (CLP) to be used as immediate gap financing, the New Jersey Credit Union League reported Friday.
"Hurricane Sandy brought unprecedented destruction to cities and towns across New Jersey and New York," said Alfred A. DelliBovi, FHLBNY president/CEO. "We now begin the long process of recovering and rebuilding. The $1 billion in funding we are making available will help our members--the local lenders serving these communities--make a long-term, positive impact on recovery, relief and rebuilding efforts."
The $1 billion CLP commitment can be used for any residential lending activity for households whose incomes are at or below 115% of the area median income, and all small business and economic development lending in FEMA-designated disaster areas, and bridge financing. The low-cost loans can be used by the FHLBNY's member-lenders to support critical disaster relief financial activities, and meet the short-, medium-, and long-term funding needs of affected communities in New Jersey and New York.
Last year, the FHLBNY announced a $500 million CLP commitment in response to the massive scope of damage created by Hurricane Irene. Home Loan Bank members tapped this funding to make small business loans in the wake of that storm.
Other aid efforts for New Jersey credit unions continue. The National Credit Union Administration collected clothing and non-perishable food items from its employees that were delivered to New Jersey Credit Union League offices Friday. The donations will are available for credit union employees, volunteers, members, and communities affected by Hurricane Sandy.