Federal Home Loan Bank of Des Moines

Transcription

1 Federal Home Loan Bank of Des Moines Community Investment Programs November 2013

2 Introduction Phil Everitt Des Moines Vice President Member Services Stacy Snyder Des Moines Rental Housing Manager

3 History Federal Home Loan Banks

4 History - FHLBanks Authorized by Congress in 1932, the Home Loan Bank System is a government sponsored enterprise comprised of 12 regional, independent Banks. Nearly 7,600 commercial banks, thrifts, insurance companies and credit unions are cooperative members of the Home Loan Banks. The mission of the Banks is to provide liquidity and stability to the nation s financial system, and promote housing and economic development in communities. 4

5 History - FHLBanks Member financial institutions borrow funds from the Banks to finance housing, economic development, infrastructure and jobs. About 80 percent of U.S. lending institutions rely on the Federal Home Loan Banks. As part of the mission, the Banks reserve 10% of net income each year for Affordable Housing Programs. 5

6 Community Investment Programs Des Moines Homeownership Fund Chicago Downpayment Plus Programs Affordable Housing Program Community Investment Advances Affordable Housing Program CICA Advances

7 Homeownership Fund Available to member financial institutions Assists owner-occupant homebuyers in rural and urban areas Funds for down payment and closing cost assistance Funds may be used for rehabilitation assistance in connection with the purchase of the home 7

8 Homeownership Fund At least one third must be first time homebuyers $2,000,000 available in 2013, applications taken September 2013 Funds recently awarded by lottery Individual member award $15,000; homebuyer award $5,000 Homebuyers at or below 80% median income NOTE: Replaces Rural Homeownership Fund and Urban First-time Homebuyer Fund 8

9 Program Guidelines and Forms 9

10 Affordable Housing Program Competitive award program Receive applications annually Fund 25%-40% Funds can be used for the purchase, construction or rehabilitation of affordable housing units Maximum award $500,000 Maximum subsidy of $30,000 per unit Lesser of the two limits 10

11 Affordable Housing Program Households must be at or below 80% of Area Median Income (AMI) ** NOTE: At least 20% of units must be targeted at 50% AMI or below on rental projects Retention periods / deed restrictions: Homeownership = 5 years Rental = 15 years 11

12 AHP Project Types Rental New construction Acquisition/rehabilitation Rehabilitation Homeownership New construction Acquisition/rehabilitation Habitat For Humanity Owner occupied rehabilitation Down payment and closing cost assistance 12

13 AHP Application Process Sponsor (applicant) must partner with a FHLB Des Moines member and request their support Sponsor registers with FHLB Des Moines Member provides Sponsor with user ID and password Sponsor completes online AHP application Member approves AHP application NOTE: The AHP application is not considered complete and eligible to receive AHP funds until the member approves it 13

14 Important Dates 2014 AHP Applications Pre-application Start: 7:00 AM February 1, 2014 Pre-application End: 4:30 PM March 30, 2014 Registration Start: 7:00 AM March 15, 2014 Registration End: 4:30 PM April 15, 2014 Application Start: 7:00 AM April 15, 2014 Application End: 4:30 PM May 15, 2014 Member Institution Approval Start: 7:00 AM April 15, 2014 Member Institution Approval End: 4:30 PM May 15, 2014 AHP AWARDS ANNOUNCED November 2014 No applications will be accepted after the AHP deadline. In addition, any applications with missing exhibits at the time of the deadline will be considered incomplete. 14

15 Points AHP Scoring Criteria Priority 1 Donated property Priority 2 Non-profit or Government Entity Sponsorship Priority 3 Income Targeting Priority 4 Homeless Households Priority 5 Promotion of Economic Empowerment Priority 6 First District Priority (in-district, special needs households) Priority 7 Second District Priority (Native American, acq/rehab) Priority 8 Subsidy Per Unit Priority 9 Community Stability (vacant and abandoned, adaptive re-use, new construction and no displacement) Scoring priorities change from year-to-year. Keep up-to-date with the scoring criteria in the AHP Implementation Plan. NOTE: Commitments made in the application must be met for the entire retention period (Rental = 15 years / HO = 5 years) 15

16 AHP Projects Funded Minnesota = $65.7 million 382 projects Missouri = $50.2 million 244 projects Iowa = $38.0 million 283 projects South Dakota = $27.9 million 145 projects North Dakota = $15.1 million 96 projects Out of District = $0.6 million 5 projects Total AHP funds awarded = $197.4 million Total projects = 1,155 Total units created/rehabbed = 40,679 Total development costs = $1.6 Billion 16

17 Member & Sponsor Roles /Responsibilities FHLB Des Moines send Progress Reports to the member to complete semiannually (April & October) Sponsor has 12 months to request disbursement of funds and 24 months to complete the project Member responsible for ensuring retention documents/ deed restrictions have been recorded 17

18 Member & Sponsor Roles /Responsibilities At completion, sponsor and member certify projects served eligible households (HO) Rental projects complete initial monitoring and long term monitoring (every 2-6 years) Sponsors conducts project in accordance with commitments in application Members assist in resolving compliance issues 18

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20 Leasburg Rehabilitaiton 20

21 Rosati House 21

22 Community Investment Advance Discounted advance program Loans to members to support affordable housing and economic development loans Match funding to manage long term interest rate risk Maximum $6 million CIA per member Minimum $100,000 residential advance Minimum $25,000 commercial advance $1 billion in CIA currently outstanding 22

23 Lower Cost Member Financing Long term, low cost advances to members Terms 1 year to 20 years Discounted interest rate rate is Bank s cost of funds, plus reasonable administrative cost Example: regular rate CIA rate 15 year advance 4.49% 4.17% Member saves 0.32% Note: Rate indications as of 10/15/13 23

24 Targeted Geographies Low-to moderate-income census tracts Below 115% AMI in rural areas Other Federally designated target areas Champion Community Empowerment Zone Enterprise Community Community Adjustment & Protection Area (CAIP) Brownfield Tax Credit area Military base closing area Indian areas Federal or state declared disaster areas Applicable qualifier for residential loans including rentals and commercial loans for agriculture 24

25 Targeted Individuals Individuals who benefit from a project as service recipients or employees, includes: Housing for families below targeted income levels; based on household income for owner occupied units and affordable rent for rental units Projects that create or retain jobs where at least 51% of employees are below targeted income levels Applicable qualifier for residential loans including rental and some commercial loan types 25

26 Targeted Activities Commercial and Agricultural Loans Loans to small businesses (per SBA and FFIEC reporting requirements) Small agricultural production loans (per FFIEC reporting requirements) Small agricultural land loans (per FFIEC reporting requirements) Beginning or young farmer loans as defined by state programs Production, processing or distribution for Local Foods or Urban Farming as defined by state or federal programs Alternative energy loans as defined by state or federal programs Except for loans to small businesses, borrowers must be located in a targeted area or serve targeted beneficiaries such as lower-wage workers. 26

27 CIA Program Guidelines and Forms 27

28 Typical Community Investment Program Calendar Native American Homeownership Initiative AHP Pre-applications AHP Registration AHP Application Homeownership Fund AHP Awards Announced January - December February - March March - April April - May September November 28

29 Community Investment Department Rental Housing Stacy Snyder, Rental Housing Manager Brandon Wiltgen, Rental Analyst Renee Marrs, Rental Housing Specialist Homeownership Rick Bloxham, Homeownership Manager Mary Jo Vogl, Homeownership Analyst Evelyn Bengtson, Set Aside Homeownership Analyst Administrative Gary Dodge, Director Community Investment Laura Newberry, Operations Manager Cheryl McCollum, Community Investment Specialist 29

30 Contact Information Community Investment Department , ext Fax: Phil Everitt Vice President - Member Services peveritt@fhlbdm.com Stacy Snyder Rental Housing Manager ssnyder@fhlbdm.com 30