2019 North Carolina Affordable Housing Forum Leveraging FHLBank Atlanta’s Structured Partnerships Arthur Fleming Fred Dodson FHLBank Atlanta Charlotte Mecklenburg Housing Partnership, Inc. Senior Vice President and Director of Community Chief Operating Officer and Investment Services Executive Vice President October 8, 2019
Our Discussion Today Introduction to FHLBank Atlanta Affordable Housing Program Products and Services POWER of EQUITY Leveraging products as customer lead generators POWER to CONNECT Business development events to drive relationships POWER of KNOWLEDGE Enhance your capacity and expertise to generate loans Structured Partnerships Community Heroes Initiative Questions and Answers FEDERAL HOME LOAN BANK OF ATLANTA 2
INTRODUCTION TO FHLBANK ATLANTA FEDERAL HOME LOAN BANK OF ATLANTA 3
FHLBanks Play a Key Role in Financial Services FHLBank System Increase and expand the availability of Provide wholesale products and services to funds for residential mortgage and approximately 6,800 member financial community development lending nationwide institutions FEDERAL HOME LOAN BANK OF ATLANTA 4
FHLBank System Overview The FHLBanks are government-sponsored enterprises, or “GSEs,” created by the Federal Home Loan Bank Act of 1932 FHLBank Atlanta is one of 11 district banks in the Federal Home Loan Bank System FHLBank Atlanta’s district comprises Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and the District of Columbia FEDERAL HOME LOAN BANK OF ATLANTA 5
FHLBank Atlanta – Financial Highlights As of June 30, 2019 • Total Assets: $149.7 billion • Total Advances (loans): $101.8 billion • Second Quarter Net Income: $93 million • Retained Earnings : $2.1 billion • Second Quarter 2019 Dividend: 6.36% • Total Membership: 835 institutions FEDERAL HOME LOAN BANK OF ATLANTA 6
FHLBank Atlanta Shareholders As of June 30, 2019 9 CDFIs 231 Credit Unions 37 Insurance Companies 65 Savings Banks Credit Unions Insurance Companies 493 Commercial Banks Savings Banks Commercial Banks Community Development 835 Total Shareholders Financial Institutions (CDFIs) FEDERAL HOME LOAN BANK OF ATLANTA 7
FHLBank Atlanta’s Products and Services Affordable Housing Letters of Credit Program (AHP) • Provide credit •Real estate funding for the enhancement on bonds acquisition, development, for residential and construction, or rehabilitation of economic development affordable housing •Ownership or rental •Single-family or multifamily Community Advances Heroes Initiative • Provide FHLBank Atlanta shareholders • Creates partnerships low-cost financing for between FHLBank lending in their Atlanta and local communities governments or housing finance agencies (HFAs) FEDERAL HOME LOAN BANK OF ATLANTA 8
AFFORDABLE HOUSING PRODUCTS AND SERVICES FEDERAL HOME LOAN BANK OF ATLANTA 9
Affordable Housing Program Products • Rental products • Homeownership products • Structured partnership products • Letters of Credit Services • Connecting you with the business drivers in North Carolina – Realtors, Developers, HFAs, Nonprofits • Providing resources to help support your market’s housing needs FEDERAL HOME LOAN BANK OF ATLANTA 10
FHLBank Atlanta Community Investment Services Products Mortgage Purchase Advance Rental and Ownership Development CIP/EDP AHP Competitive Homeowner Assistance $500,000 for rental or ownership Down payment, closing costs, and Discounted advance products for • • • development projects principal reduction funding for home residential or economic development purchase or home rehabilitation projects Competitive application - each • FHLBank has its own scoring criteria Generally first come, first served Generally first come, first served • • Shareholder contacts: Shareholder contacts: Shareholder contacts: • • • Commercial loan officers Single-family mortgage loan Commercial loan officers • • • officers CRA officers CRA officers • • CRA officers • Business development officers Business development officers • • Business development officer • Developer / Builder Driven Mortgage Professional Driven Shareholder Driven New construction Owner-occupied Products: Enables Housing Rehabilitation First-time homebuyer, Development Multifamily Community Partners, and Community Single-family Veteran, Community Revitalization Acquisition Rebuild and Restore, Activities Construction and/or permanent financing Foreclosure Recovery FEDERAL HOME LOAN BANK OF ATLANTA 11
AHP Competitive Program (Rental) Low-Income Non-LIHTC Supportive Housing Tax Mixed-use Housing Multifamily Credit (LIHTC) Reduces Project Debt Service • Permits a reduction in project rents to enable affordability Use of Funds • Acquisition • Rehabilitation • New construction Moore Place The Mulberry Senior Apartments • Permanent funding Charlotte, NC Charlotte, NC AHP Investment: $1,000,000 AHP Investment: $500,000 Total Development Cost: $6,240,000 Total Development Cost: $15,870,068 FEDERAL HOME LOAN BANK OF ATLANTA 12
How Often Do We Offer the AHP Competitive Program? FHLBank Atlanta AHP Competitive 3-Year Application Schedule FEDERAL HOME LOAN BANK OF ATLANTA 13
Shareholder-focused Homeownership Products Purchase Products Rehabilitation Products First-time Homebuyer Veterans Purchase Foreclosure Recovery Community Rebuild and Product $7,500 Product $15,000 Product $5,000 Restore $10,000 Structured Partnerships Community Partners Returning Veterans Product $7,500 Purchase Product $10,000 HFAs, cities, and counties Amounts vary per partner FEDERAL HOME LOAN BANK OF ATLANTA 14
Community Partners Product Designed to assist those who help others as a profession including current or retired law enforcement officers, educators, healthcare workers, firefighters, and other first responders Product Highlights: • Maximum subsidy is $7,500 per homebuyer • Funding is provided as a 4-to-1 match • The homebuyer contributes at least $1,000 Law Firefighters Teachers Healthcare Workers Law Enforcement Healthcare Enforcement Workers Officers Officers FEDERAL HOME LOAN BANK OF ATLANTA 15
Disaster Recovery FEDERAL HOME LOAN BANK OF ATLANTA 16
Power of Equity FEDERAL HOME LOAN BANK OF ATLANTA 17
Case Study: The Mulberry Senior Apartments The Numbers Financing Status • $15.9 million project • Completion Date: • The Home Depot Foundation February 2019 • North Carolina Housing Finance • Fully leased The Mulberry Senior Apartments is a 104-unit Agency – LIHTC Equity • 100 percent occupied apartment community on Tuckaseegee Road off of • SunTrust Community Capital – Yahtzee Lane in West Charlotte. The community spans construction loan and permanent more than six acres and is for seniors age 55 and mortgage loan older. There are 54 two-bedroom units at 942 square • City of Charlotte’s Housing Trust feet and 50 one-bedroom units at 670 square feet. Fund • The Housing Partnership POWER of EQUITY FEDERAL HOME LOAN BANK OF ATLANTA 18
Impact of AHP on Rental, Home Construction, and Rehabilitation Activities The multiplier is calculated based on factors presented in the study “Enhancing Lives, Impacting Communities: The Federal Home Loan Bank System” prepared by the Center for Economic Forecasting and Analysis, Florida State University, 2018. POWER of EQUITY FEDERAL HOME LOAN BANK OF ATLANTA 19
Impact of AHP on Home Purchase Activities The multiplier is calculated based on factors presented in the study “Enhancing Lives, Impacting Communities: The Federal Home Loan Bank System” prepared by the Center for Economic Forecasting and Analysis, Florida State University, 2018. POWER of EQUITY FEDERAL HOME LOAN BANK OF ATLANTA 20
Power to Connect FEDERAL HOME LOAN BANK OF ATLANTA 21
Power to Connect: Business Drivers • Connecting: Developers, realtors, contractors, nonprofits, etc. • Marketing: Templates for marketing homeowner assistance products available on FHLBank Atlanta’s website • Education and Outreach: FHLBank Atlanta will work with shareholders to conduct webinars and other events to help attract, train, or retain customers • Scale and Impact Profiles: Reports for demonstrating shareholder impact on job creation, local taxes, and local economies POWER to CONNECT FEDERAL HOME LOAN BANK OF ATLANTA 22
Expanding Your Eligible Customer Base Easy to Use Highest of Four Income Point and Click Methodologies Prequalification Tool https:// cis.fhlbatl.com/ahp/utilities.portal POWER to CONNECT FEDERAL HOME LOAN BANK OF ATLANTA 23
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