WATERBURY, Conn, February 23, 2010 -- Webster Bank, N.A., a subsidiary of Webster Financial Corporation (NYSE: WBS), announced today that it has secured a $797,452 affordable housing grant from the Federal Home Loan Bank of Boston on behalf of NeighborWorks® New Horizons to support development of the Highwood Square project in Hamden, Conn.
With 27 affordable housing units and 9,300 square feet of commercial space, the $9.8 million Highwood Square project is being developed by NeighborWorks New Horizons, a nonprofit group that develops and operates affordable housing in the New Haven and New London regions. The mixed-use project broke ground in 2009 and occupancy is planned for July 2010. The $797,452 was awarded by the Federal Home Loan Bank of Boston’s Affordable Housing Program (AHP).
"Webster Bank was founded in 1935 so that people of modest means could build and buy homes," said Jeff Klaus, Webster’s Regional President for New Haven. "Working with groups such as NeighborWorks New Horizons to create affordable housing is key to fulfilling our mission to support the communities we serve."
Webster partners with local non-profit organizations such as NeighborWorks New Horizons to develop strategies and submit applications on their behalf to secure grant funding and below-market rate interest loans through the AHP. The AHP subsidy will allow NeighborWorks New Horizons to leverage a $1.265 million construction loan and a $1.2 million permanent loan provided by Webster.
"Webster has a long established relationship with Federal Home Loan Bank of Boston and their programs," said Peter Mosbacher, Webster’s SVP for Community Development. "These types of grants help to leverage bank financing to support the construction of affordable housing and community facilities, create jobs, and generate economic development in low and moderate income neighborhoods."
Through the AHP, Federal Home Loan Bank of Boston members such as Webster work with community-based housing developers to obtain the Bank's grants and interest-rate subsidies for specific housing initiatives. The 12 Federal Home Loan Banks are government-sponsored enterprises, federally chartered but privately capitalized and independently managed.
"NeighborWorks New Horizons is proud of our partnership with Webster Bank, which allows us to respond to the need for affordable housing and economic development in Hamden. Our collaboration with Webster Bank is in direct response to the needs of the community. Additionally, this project is unique because it brings together private, local, state and federal resources to expand housing and economic opportunities in Hamden," said Seila Mosquera-Bruno, NeighborWorks Executive Director.
"I commend Webster Bank for its efforts to increase the stock of much needed affordable housing in Hamden," said M. Susan Elliott, executive vice president and chief business officer of the Federal Home Loan Bank of Boston. "I’m proud that our contribution will help make the dream of an affordable place to call home a reality for 27 households."
Serving businesses, consumers, and governmental entities stretching from Boston’s financial district through Westchester County in New York with 181 branches, 501 ATMs, and a robust online presence, Webster Bank delivers the full suite of financial products and services of a big bank with the personal service of a local bank.
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About WebsterWebster Financial Corporation is the holding company for Webster Bank, National Association. With $17.7 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust and investment services through 181 banking offices, 501 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, Center Capital Corporation, an equipment finance company headquartered in Farmington, Conn., and provides health savings account trustee and administrative services through HSA Bank, a division of Webster Bank. Member FDIC and equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com.