Through its Affordable Housing Program (AHP), Federal Home Loan Bank of Boston has allocated $3 million to be used for financing 79 units of affordable rental and ownership housing for households earning at or below 80 percent of area median income in Massachusetts, Maine, and Vermont.

According to the bank, $2.6 million will be awarded as a grant or subsidy, and the remaining $400,000 will be in the form of loans.

“This marks the 20th consecutive year the bank has awarded grants and subsidies under the AHP,” said Edward A. Hjerpe III, president and CEO of Federal Home Loan Bank of Boston. “The funds committed — more than $186 million — have led to more than 22,300 housing units for very low, low, and moderate-income households and have helped stimulate economic development throughout New England.”

By helping to pay construction, acquisition, or rehabilitation costs, AHP funds are used to create or preserve affordable housing. This funding is awarded through a competitive scoring process, which local developers apply for by working with member financial institutions.

Barney Frank, Massachusetts Congressman, said the latest AHP offered by the Federal Home Loan Bank of Boston is a welcome announcement and underlines two important points. It shows the importance of public-private cooperation in meeting an important social need, and it is an example of the constructive role played by community banks, Frank said.

Maine Congressman, Mike Michaud echoed Frank’s support of the funding offered through the bank’s AHP and said, “With the overall decrease in housing construction, our country has experienced severe job losses in the building and trades sector. At the same time, we have seen the demand for affordable housing increase. This funding represents an important investment in our state and will help address both of these challenges.”

Funding was made available to seven banks in Massachusetts. Easthampton Savings Bank received a grant of $59,924 to be used for the construction of two homes on land donated by Amherst College, providing homeownership opportunities for two very low-income, first-time homebuyers.

Bridgewater Savings Bank was awarded a $340,000 grant in order to acquire and rehabilitate a foreclosed rental property which will provide energy-efficient, permanent housing for 17 homeless and low-income families. Fidelity Co-Operative Bank accepted a $500,000 grant for the construction of 20 units of veteran family housing on 10 acres of land donated by Mount Wachusett Community College.

RBS Citizens, National Association received a $28,829 grant which will be used to build a four bedroom home by women as a means of teaching construction skills. The Village Bank was given a $50,000 grant to acquire and rehabilitate a two-family home with the intention of providing supportive housing for two very low-income families. Southbridge Savings Bank received a $539,416 grant and subsidy and a $300,000 advance to acquire, preserve, and rehabilitate a property, making 16 units of single-room occupancy available for very low-income, formerly homeless individuals. Bank of America Rhode Island, N.A., was awarded a $90,000 grant to construct three single-family, energy-efficient homes in a neighborhood with high foreclosure rates for very low and low-income families.

In Maine, two locations of Camden National Bank were awarded funding for affordable housing. The Ellsworth location received a $338,000 grant in order to construct eight rental units on a vacant, previously land-locked and inaccessible lot for households with incomes at or below 50 percent of area median income. The Vinalhaven location was given a $500,000 grant to create affordable housing for four very low-income and two moderate-income households through the renovation of a former general store.

In Vermont, National Bank of Middlebury was given a $174,933 grant and subsidy and an advance of $115,000 to provide transitional and supportive housing for four very low-income, formerly homeless households through the acquisition and rehabilitation of a three-family building

Federal Home Loan Bank of Boston refers to itself as a bank for banks and is cooperatively owned by more than 450 New England financial institutions. By providing what the bank considers highly reliable wholesale funding and liquidity to member financial institutions in New England, Federal Home Loan Bank of Boston says it is able to deliver competitively priced financial products, services, and expertise that support housing finance and community economic growth, including programs targeted to lower-income households.