Progress

West Hazleton Luzerne County Housing Authority receives $650,000 grant from Federal Home Loan Bank for new complex

July 30, 2008

Senior housing funding in place

By Steve Mocarsky smocarsky@timesleader.com
Staff Writer
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WEST HAZLETON – The final piece of funding for construction of a $4.2 million apartment complex for the elderly fell into place on Tuesday when officials announced the awarding of a $650,000 grant to the Luzerne County Housing Authority.

Officials from the Federal Home Loan Bank in Pittsburgh presented a check to county and local officials at a ceremony in West Hazleton Borough Council Chambers.

John Bendel, director of community investment for FHL Bank in Pittsburgh, said his is one of 12 FHL banks across the country that are owned by 320 financial institutions and provide liquidity to help keep those banks afloat.

“They come to us when they need to borrow money,” he explained.

Bendel said the FHL banks put 10 percent of their annual profits into an Affordable Housing Program, which is the source of the $650,000 grant. The money is distributed on a competitive basis to projects that provide affordable housing to seniors, families, the homeless and those with special needs.

This project was one of 26 funded projects that were selected out of 91 applicants this funding cycle.

“It was very fierce competition, … and those of you involved … ought to be proud,” Bendel said.

Dave Fagula, executive director of the housing authority, thanked FHL Bank officials for their help. He also said there is “no one-stop shop anymore for funding” for such projects, and several other people and agencies were essential to the project’s success.

West Hazleton donated the land; the Luzerne County Office of Community Development provided a $1.5 million grant with county commissioners’ approval; the housing authority chipped in $1.55 million, and Luzerne Bank provided a $500,000 conventional loan, Fagula said.

Mayor Mark Rockovich said it was obvious that the former E.A. Encke Elementary School that once stood on the property could not be remodeled.

“This land has stood for something in our community, and we need to have an excellent purpose for it. I think this project is the excellent purpose,” Rockovich said.

U.S. Rep. Paul Kanjorski, D-Nanticoke, the keynote speaker, said such a project “doesn’t happen without unique and exciting leadership, and that’s what the mayor and council have exhibited here.”

Fagula said he expects construction to begin by the fall after local building variances are secured and the project is bid out. He hopes it will be complete by the end of 2009.

“Everybody knows what’s happening with taxes and the cost of fuel oil. We’re hoping that those elderly individuals in this community who can no longer take care of themselves in their own homes will have the opportunity to move into this building and have nice, affordable housing in the community,” Fagula said.

Banking legislation

John Bendel, director of Community Investment for the Federal Home Loan Bank in Pittsburgh, said an important piece of legislation, supported by U.S. Rep. Paul Kanjorski, D-Nanticoke, has passed muster in the U.S. House of Representatives and is working its way through the Senate.

Section 149 of the U.S. Tax Code would give Federal Home Loan Banks the authority to issue letters of credit and stand behind member banks for issuance of tax-exempt municipal bonds. That would allow the banks to finance such things as municipal building projects, fire trucks and economic development, he said.

Kanjorski said the legislation would allow municipalities to save millions on bond insurance because of the FHL Banks’ Triple-A credit rating.

Steve Mocarsky, a Times Leader staff writer, may be reached at 49-2005.

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