September 29 – In response to the severe and extensive damage caused by Hurricanes Harvey, Irma and Maria, the Federal Home Loan Bank of New York has made $1 billion in disaster relief funding available to its members to help rebuild communities in FEMA-designated disaster areas in Puerto Rico, the U.S. Virgin Islands, Florida, Texas and the Southeast. The funds are being made available by the FHLBNY through its Community Lending Programs (“CLP”) to be used as both immediate gap financing and longer-term funding to restore homes and businesses.
“Communities across our nation are suffering in the aftermath of the destruction wrought by three powerful storms,” said José R. González, president and CEO of the FHLBNY. “In our District, Puerto Rico and the U.S. Virgin Islands are in the initial stages of recovering from unprecedented damage. As we have seen in past natural disasters, the local lender is key to relief and rebuilding efforts. The $1 billion in funding will help our members – these local lenders serving the affected communities – make a long-term, positive impact on recovery, relief and rebuilding efforts.”
In addition to the disaster relief funding, the FHLBNY will donate $500,000 to charities in Puerto Rico and the U.S. Virgin Islands working on the ground to provide immediate relief. This follows a pair of $1 million donations made by the Federal Home Loan Bank System: one for Hurricane Irma and Maria relief efforts, to be split evenly between Puerto Rico and the U.S. Virgin Islands, and Florida and the Southeast; and another one for Hurricane Harvey relief efforts in Texas. In total, the FHLBNY will channel $1 million in donations to a number of Puerto Rico and U.S. Virgin Islands organizations, including the American Red Cross, The Salvation Army, Americares, Catholic Charities, United Way of Puerto Rico, All Hands and the Community Foundation of the Virgin Islands.
The $1 billion CLP commitment can be used for any residential lending activity for households whose incomes are at or below 115 percent of the area median income, as well as all small business and economic development lending in FEMA-designated disaster areas, and bridge financing. These 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.
Federal Home Loan Bank of New York
The Federal Home Loan Bank of New York is a Congressionally chartered, wholesale Bank. It is part of the Federal Home Loan Bank System, a national wholesale banking network of 11 regional, stockholder-owned banks. As of June 30, 2017, the FHLB of New York serves 322 financial institutions in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands. The Federal Home Loan Banks support the efforts of local members to help provide financing for America’s homebuyers.
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This report may contain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “projected,” “expects,” “may,” or their negatives or other variations on these terms. The Bank cautions that, by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, regulatory and accounting rule adjustments or requirements, changes in interest rates, changes in projected business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our membership profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products, and general economic conditions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.