FHLB-NY Offers Flood Relief

The Federal Home Loan Bank of New York will provide up to $250 million of disaster relief loans to member institutions that can turn around and use the money to help troubled homeowners in flood affected areas in parts of New York and New Jersey. The money is being made available through the FHLB's community lending program, and can be used as gap financing while insurance settlements are being worked out. Before a loan can be made the area must be designated as a flood-affected area by the Federal Emergency Management Agency. A few weeks ago parts of New York and New Jersey were affected by heavy flooding caused by heavy rains. Alfred A. DelliBovi, president and chief executive of the FHLB-NY, said, "The funds we are making available today will allow our members to make an immediate, positive impact on recovery efforts, while providing the flexibility our members need to suit these efforts to the individual communities they serve." The money can be used for housing, small business and economic development lending. The funds are available for relief efforts in every county in New Jersey except for Sussex, Warren, Hunterdon and Hudson. In New York, the areas covered are Nassau and Suffolk counties on Long Island, Courtland and Chenango in central New York and Allegany, Cattaraugus, Chautauqua and Erie in western New York.