Bank Invests in Economically Viable Solution to Prevent and End Homelessness
(New York, NY)— The Federal Home Loan Bank of New York (FHLBNY), a cooperative liquidity provider which advances housing opportunity and local community development, has generously invested $250,000 in a new fund that supports an upstream intervention to keep New Yorkers at immediate risk of homelessness in their homes, preventing them from ending up in shelters or on the streets.
The Save Homes Fund, created by The Partnership To End Homelessness, aims to raise $12 million over three years to strengthen its homelessness prevention services and support 6,000 New Yorkers.
“At the Federal Home Loan Bank of New York, we know that a stable home is the foundation from which we grow as individuals, families and communities,” said José R. González, President and CEO of the FHLBNY. “The Partnership to End Homelessness’s work is essential to ensuring housing security for those who need it most, and we are honored to support the vital Save Homes Fund. Creating and preserving access to housing opportunities is a mission we are proud to share with The Partnership.”
The FHLBNY, which is part of the congressionally chartered, nationwide Federal Home Loan Bank System, provides members with access to economical wholesale credit and assistance through its credit products, mortgage finance program, housing and community lending programs and correspondent services to increase the availability of home finance to families of all incomes in communities across New York, New Jersey, Puerto Rico and the U.S. Virgin Islands.
The investment in the Save Homes Fund illustrates FHLBNY’s ongoing commitment to support New Yorkers at risk of homelessness.
“Thanks to partners like Federal Home Loan Bank of New York, the Save Homes Fund will keep New Yorkers safely housed and can serve as a model of solving homelessness that could be replicated across New York City and State,” said Áine Duggan, President and CEO of The Partnership. “Homelessness disproportionately hurts women and children of color. Together, with Federal Home Loan Bank of New York, we can correct this inequity and set and achieve the goal of making New York City a place that guarantees safe, affordable housing for all its residents.”
The contribution – FHLBNY’s second quarter-of-a-million investment in the last two years – will support the nonprofit’s ability to provide rental and financial assistance, rehousing, crisis, counseling and education services.
Such investments in prevention yield cost-savings to the City, because prevention is the most cost-effective and humanitarian solution to homelessness. The current average rent arrears of a family in need of assistance is $4,000, a mere fraction of the $100,000 cost of providing shelter for that same family in New York City if they lose their home; and, paying a family’s annual rent bill (typically between $20,000 and $25,0000) is only approximately one-quarter of the cost of shelter.
By paying a family’s rent arrears, the Save Homes Fund effectively prevents an eviction and safeguards a family in their home, ensuring that instead of being burdened with the stress of homelessness, family members can immediately focus on their well-being and rebuilding (including work, school and health) and create intergenerational opportunity rather than intergenerational poverty.
Photo Credit: Lorenzo Donvito