Growing Communities FHLBank Atlanta The Value of the Community Dividend 1
Growing Communities The Federal Home Loan Bank System • Government Sponsored Enterprise chartered by Congress in 1932 • The 12 district FHLBanks are each privately- held cooperatives composed of more than 8,100 member/owner financial institutions • Vital component of U.S. banking system and liquidity source for the majority of domestic financial institutions 2
Growing Communities FHLBank Atlanta Membership 1,195 Financial Institutions in the Southeast 3
Growing Communities Characteristics of FHLBank Atlanta as a Cooperative • Shareholder/customer dynamic Stock • Have not experienced Members FHLBank a credit loss in 75 years Advances • Annual reinvestment of at least 10 percent of net income into affordable housing Community Dividend 4
Growing Communities The Community Dividend • FHLBank Atlanta views the 10 percent income allocation as the dividend that we pay the community • Like every other dividend, the payment is predicated upon the positive financial performance of FHLBank Atlanta 5
Growing Communities How We Grow Communities Developer requests funds Community for Affordable Housing Funds are invested Development in the community AHP Financial Community Community Grows Institution Dividend FHLBank Atlanta Member institution FHLBank approves funding applies for funds from on competitive basis FHLBank Atlanta 6
Growing Communities CIS Overview AHP - Funding to create rental Product Portfolio Affordable and homeownership Housing opportunities for moderate-, Program low- and very low-income (AHP) households First-time Community Homebuyer Investment FHLBanks Program Program (FHP) (CIP) FHP - Down payment EDP & CIP - Discounted Economic and closing cost advances to support Development assistance for housing and economic Program first-time homebuyers development (EDP) 7 7
Growing Communities Affordable Housing Program (AHP) • Funding to create rental and homeownership opportunities for moderate-, low- and very low-income households • Beneficiaries ― Residents at or below 80 percent of Area Median Income (AMI) • Competitive Application Process • Uses: – New construction or rehabilitation – Acquisition – Permanent financing – Down payment and closing cost assistance 8
Growing Communities Major Initiatives last Three Years Policy Project Readiness Foreclosure Prevention and Recovery Member Financial Participation Operational Operational Efficiency and Productivity Improvements Metric driven environment 1 9
Growing Communities Progress Milestones Timeframe After Milestone AHP Award 6 months • Proper zoning and land use designation obtained and evidence submitted – Except for single-family foreclosure and ownership post-development projects 12 months • Funding sources committed – Evidence must be received indicating that all other funding sources for the proposed project have been committed 18 months • Start of construction on the proposed project • AHP funds disbursed 24 months • Minimum of 25% of the construction complete 30 months • Construction on the proposed project substantially complete 36 months • Project complete – Draw down of all AHP funds – Construction complete – All requested documents received and approved by the Bank – All owner-occupied units must be sold and occupied by eligible households – Rental projects must have a certificate of occupancy and be at least 75% occupied 10 10
Growing Communities 2010 ALLOCATION CATEGORY POINTS Donated Government-Owned or Other Property 5 variable Nonprofit or Government Sponsor 5 variable Targeting 20 variable Housing for Homeless Households 5 fixed Empowerments 5 variable First District Priority Rural 5 variable Disaster Areas 5 variable Member Participation 15 fixed Second District Priority Foreclosure Recovery 15 fixed AHP Subsidy per Unit 10 variable Community Stability 10 variable 11 Total Points 100 11
Growing Communities Members Stimulating Local Economies Leverage Effect For every $1 million of AHP funding, $14.3 million of housing is built or rehabilitated $1 $14.3 Million Million AHP Housing Built or Rehabilitated Without the substantial leveraging of AHP funds, the economic impact of the program would be only 1.7-1.8 Source- Beyond Units: Economic Benefits of Federal Home Loan Bank of Atlanta’s Affordable Housing Program 12 by The Hendrickson Company and The Shimberg Center for Housing Studies at the University of Florida
Growing Communities Members Stimulating Local Economies Tax Revenue Over $811 million of federal, state, and local taxes has been generated as a result of FHLBank Atlanta AHP funding Corporate State Income Taxes Taxes Real Estate Federal Income Taxes Taxes 13
Growing Communities Members Stimulating Local Economies Job Creation For every $1 million of AHP funding, 158 jobs are created. FHLBank Atlanta’s AHP has helped create an estimated 46,000 jobs during its 20 year history Jobs created: Industry supported: Retail Builders Insurance Architects Real Estate Supplies Services Utilities Transportation Bankers Government 14
Growing Communities Affordable Housing Program Florida Project Summary Total number of projects 20 Total number of AHP units 897 Total subsidy awarded $12,005,499 Total development cost $97,896,592 Total units above 80% AMI 0 Total moderate-income units 30 Total low-income units 267 Total Very low-income units 600 Total rural units 430 Total ownership units 139 Total rental units 758 15
Growing Communities First-time Homebuyer Program (FHP) Down payment and closing cost assistance • – 5:1 Match (Minimum borrower contribution of $500) – Maximum $7,500 per borrower – Registered members eligible for up to $1,000,000 per year – First-come, first-served Benefits homebuyers at or below 80% AMI • Five year retention agreement • 16
Growing Communities Community Investment Program (CIP) and Economic Development Program (EDP) • Discounted advances (up to 10 basis points) • Always available, simple application, no maximum amount • Complements government programs • One advance can fund multiple loans • Discounted loans approaching $5 billion 17
Growing Communities How We Connect Webinars In-market workshops Forums Sponsorships Business Development and Relationship Management Jackson Cosey Shadonte Dozier Louis Freeman 800.536.9650 www.fhlbatl.com 18
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