HAMMOND, La., Dec. 4, 2013 (GLOBE NEWSWIRE) -- The Federal Home Loan Bank of Dallas (FHLB Dallas) and First Guaranty Bank were joined by Mayor Mayson Foster as they announced a $500,000 Affordable Housing Program (AHP) grant to Nebillie, Inc. for an extensive rehabilitation of an aging Hammond apartment complex.

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The grant will be combined with other funding to enable Nebillie, Inc. to embark on a $7.9 million renovation of 11 residential buildings and clubhouse at Terrace of Hammond apartments in Hammond, Louisiana.

Mayor Foster, along with representatives from First Guaranty Bank and FHLB Dallas officially announced the grant at an event at First Guaranty Bank Monday.

"The Affordable Housing Program's mission is to assist members, like First Guaranty Bank, in addressing the affordable housing needs in their communities," said Greg Hettrick, FHLB Dallas vice president and director of community investment. "We're pleased that this AHP grant will help provide 79 families with newly renovated housing."

The project will convert what had become substandard housing into energy-efficient apartment units with all the latest amenities, helping to transform the surrounding neighborhood, according to Kristina Knight, vice president of acquisitions at RichSmith Development.

The AHP grant helped make the project feasible, Ms. Knight said.

"In all honesty, the Federal Home Loan Bank of Dallas AHP grant made this project possible," she said. "The AHP grant will allow us to rehabilitate the apartments and provide unit and community amenities the residents deserve. The condition of the property is so substandard, and no one should have to live in that type of environment."

Randal McDonald, senior vice president and chief risk officer of First Guaranty Bank, said First Guaranty is committed to contributing to the growth and wellbeing of the communities it serves.

"We believe the Terrace of Hammond project aligns well with our mission to be a socially responsible corporate citizen," Mr. McDonald said. "These apartments are going to provide much-needed safe and affordable housing to the residents of Hammond. We are thankful for the commitment that Nebillie and RichSmith Development have made to provide high-quality, affordable housing to our city's residents."

Each unit will include a microwave with range hood, refrigerator, stove, dishwasher, garbage disposal, washer and dryer, and ceiling fans. Other amenities include on-site management and maintenance, a gated entrance, fitness center, playground, and a business center. The complex will also provide employment workforce development and financial literacy training.

Renovation work will involve reconfiguring two-, three-, and four-bedroom apartments into one-, two-, and three-bedroom units. Each of the two- and three-bedroom units will receive a second bathroom.

Work is expected to begin on or about February 1 and be completed in about seven months.

AHP grants are awarded through FHLB Dallas member financial institutions, such as First Guaranty Bank, to assist in the development of affordable owner-occupied and rental housing for very low- to moderate-income households. This year, FHLB Dallas awarded $11.3 million in AHP funding to 36 projects across its five-state District of Arkansas, Louisiana, Mississippi, New Mexico, and Texas. The funding will result in the creation or rehabilitation of 1,654 housing units across the District.

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 $31.3 billion as of September 30, 2013, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to approximately 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico, and Texas. For more information, visit the FHLB Dallas website at fhlb.com.

The photo is also available via AP PhotoExpress.