DALLAS, Aug. 5, 2009 (GLOBE NEWSWIRE) -- A $198,000 Affordable Housing Program (AHP) grant has been awarded to a city of Vicksburg project that will assist very low- to low-income, first-time homebuyers. The AHP grant was made available by the Federal Home Loan Bank of Dallas (FHLB Dallas) through RiverHills Bank, one of its members in Port Gibson, Mississippi.

The city of Vicksburg will use the AHP funds to help eight very low-income and 10 low-income homebuyers with down payment and closing cost assistance. In addition to helping these traditional renters become homeowners, the funds will provide assistance for flood victims, who are relocating from the flooded areas of Mississippi.

David Blackledge, Vice President at RiverHills Bank, said that the bank is seeing positive results from the grant program in helping low-income individuals obtain housing in Vicksburg.

"These families are moving from rental housing to homes of their own. It is really making a huge impact on our housing market," Mr. Blackledge said. "We are very pleased to be a part of this program and to be able to sponsor the grant and help individuals in our community obtain housing. It has been very easy to work with the Federal Home Loan Bank of Dallas and the City of Vicksburg in helping coordinate this program."

Beatrice Moore, Director of Housing and Community Development at the city of Vicksburg, said a total of 18 households will receive money from the grant, with each household receiving $11,000.

"Without these (AHP) funds, many of our potential homebuyers in the very low- to low-income category would be unable to own a home," said Ms. Moore. "RiverHills Bank has been very supportive of our affordable housing programs over the years and we are looking forward to implementing this grant with them."

Each year, FHLB Dallas returns 10 percent of its profits to the communities served by member institutions in the form of AHP grants issued through its member financial institutions. So far in 2009, FHLB Dallas has awarded $5.4 million to projects within its five-state District, including nearly $1.3 million to projects in Mississippi, resulting in the creation or renovation of 136 housing units in the state.

About the Federal Home Loan Bank of Dallas

The Federal Home Loan Bank of Dallas is one of 12 district banks in the FHLBank System created by Congress in 1932. FHLB Dallas, with total assets of $68.7 billion as of March 31, 2009, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to more than 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information, visit the FHLB Dallas web site at fhlb.com.

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