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Federal Home Loan Bank of Atlanta AHP Set-aside Product Training Member Education Presentation FEDERAL HOME LOAN BANK OF ATLANTA AHP Set-aside Product.

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Presentation on theme: "Federal Home Loan Bank of Atlanta AHP Set-aside Product Training Member Education Presentation FEDERAL HOME LOAN BANK OF ATLANTA AHP Set-aside Product."— Presentation transcript:

1 Federal Home Loan Bank of Atlanta AHP Set-aside Product Training Member Education Presentation FEDERAL HOME LOAN BANK OF ATLANTA AHP Set-aside Product Training FEDERAL HOME LOAN BANK OF ATLANTA

2 AHP Set-aside Products What you‘ll take away from this session:  An overview of FHLBank Atlanta’s new AHP Set-aside Products  An understanding of how to access product funds 2

3 AHP Set-aside Products FHLBank Atlanta’s Exciting New Product Offering!  5 AHP Set-aside Products are now available Community Stability Product (CSP) Energy Efficiency/ Weatherization Rehabilitation Product (EWP) Accessibility Rehabilitation Product (ARP) Foreclosure Recovery Product (FRP) Rehabilitation Products First-time Homebuyer Product (FHP) Purchase Products

4 AHP Set-aside Products Are you interested in?  The opportunity to generate fee income on purchase transactions  Enhancing and developing realtor partnerships  Reducing loan risk  Additional equity to reduce loan to value  Improving the condition of collateral  Funding that can be combined with down-payment assistance from other sources  A streamlined process with reduced paperwork  Addressing CRA requirements FHLBank Atlanta’s New Set-aside Products can help!

5 AHP Set-aside Products The First-time Homebuyer Product provides matching funds for the down payments and closing costs of first-time homebuyers. Product Highlights:  Maximum subsidy is $7,500 per homebuyer  Funding is provided as a 4 to 1 match  The homebuyer must contribute at least $1,000  The homebuyer must have income that is less than or equal to 80% AMI adjusted for family size  Purchased home must be used as the homebuyer's primary residence  Homebuyer must meet the definition of a first-time homebuyer as defined by the Cranston-Gonzalez National Affordable Housing Act of First-time Homebuyer Product

6 AHP Set-aside Products FHLBank Atlanta's Community Stability product provides up to $7,500 in down-payment and closing-cost funding to first-time homebuyers or non-first-time homebuyers for the purchase or purchase and rehabilitation of an existing home in neighborhoods targeted for stabilization by a government or special district or authority. Product Highlights:  Maximum subsidy is $7,500 per homebuyer  Funding is provided as a 4 to 1 match  The homebuyer must contribute at least $1,000  The homebuyer must have income that is less than or equal to 80% AMI adjusted for family size  Home must be located in a neighborhood targeted for stabilization by a federal, state, or local government entity or any special district or authority. 6 Community Stability Product

7 AHP Set-aside Products Examples of Community Stability target areas include but are not limited to: −Community Development Block Grant Target Areas −Tax Allocation Districts −Community Reinvestment Act Target Areas −Enterprise Zones −Special Planning Areas −State/Local Housing Agency Target Areas −Neighborhood Stabilization Program Target Communities −Disaster Recovery Zones −USDA Rural Designated Areas 7

8 AHP Set-aside Products FHLBank Atlanta's Foreclosure Recovery product provides up to $15,000 in down-payment, closing-cost, and rehabilitation funding for the purchase or purchase and rehabilitation of an existing home from the Real Estate Owned (REO) inventory of an FHLBank Atlanta member financial institution. The funding is available to first-time homebuyers or non-first-time homebuyers. Product Highlights:  Maximum subsidy is $15,000 per homebuyer  Funding is provided as a 4 to 1 match  The homebuyer must contribute at least $1,000  The homebuyer must have income that is less than or equal to 80% AMI-adjusted for family size  Home must be part of an FHLBank Atlanta member's Real Estate Owned property inventory  Purchase price of unit cannot exceed the "as-is" market value 8 Foreclosure Recovery Product

9 AHP Set-aside Products Property Eligibility Requirements for Purchase Products 9 First-time HomebuyerCommunity StabilityForeclosure Recovery AL, DC, FL, GA, MD, NC, SC, VA Home must be located in a neighborhood targeted for stabilization by a federal, state, or local governmental entity AL, DC, FL, GA, MD, NC, SC, VA Eligible Properties  Owner-occupied units that are intended as the primary residence of the homebuyer -Single Family detached -Condominiums -Townhouses -Foreclosed properties -Cooperatives -Manufactured and Mobile Housing Must be titled as real property in accordance with the laws and requirements of the jurisdiction where the property is located -New construction New construction requests are eligible when the home is within 30 days or less of being closed (FHP and CSP only)  Eligible Geographic Areas:

10 AHP Set-aside Products Example Homebuyer: Mr. W… 1 st Mortgage Provided by Your Institution Home Sales Price$99,500 Closing Costs$6,282 Total Costs$105,782 Member First Mortgage$92,536 AHP Set-aside$7,500 Homebuyer down-payment$1,500 Seller Contribution$4,246 Member LTV (First Mortgage/Sales Price) 93% Member LTV without AHP Set-aside (First Mortgage/Sales Price) 101% 10

11 AHP Set-aside Products Are you interested in?  Enhancing your existing collateral  Developing strategic partnerships with key stakeholders in your market  City, county and state government agencies  Community development groups and nonprofit organizations  Contractors  Funding that can be combined with other sources  Cross selling products to current and potential customers  Improving the condition of properties to facilitate refinancing  A streamlined process with reduced paperwork  Paperwork can be initiated by community development groups or nonprofit organizations  Addressing CRA requirements

12 AHP Set-aside Products FHLBank Atlanta's Energy Efficiency and Weatherization product provides up to $15,000 for weatherization and energy efficient improvements of an existing owner-occupied home. Eligible improvements include but are not limited to exterior doors, HVAC systems, insulation, water heaters, roof, windows, and low-flow plumbing fixtures Product Highlights:  Maximum subsidy is $15,000 per homebuyer  Have incomes at or below 80% AMI adjusted for family size  Home must be owner-occupied and used as the borrower's primary residence  Borrower must have at least one year of ownership by a life estate or a full interest in the fee title Rehabilitation products allow for the involvement of an intermediary organization or corporation working with the member. Soft costs, including intermediary fees, of up to 20% of hard costs are allowed. 12 Energy Efficiency and Weatherization

13 AHP Set-aside Products FHLBank Atlanta's Accessibility Rehabilitation product provides up to $15,000 to pay for accessibility improvements of an existing owner- occupied home. Eligible improvements include but are not limited to exterior ramps and sidewalks, bathroom and kitchen renovations, door widening, and floor replacement Product Highlights:  Maximum subsidy is $15,000 per homebuyer  Have incomes at or below 80% AMI adjusted for family size  Home must be owner-occupied and used as the borrower's primary residence  Borrower must have at least one year of ownership by a life estate or a full interest in the fee title Rehabilitation products allow for the involvement of an intermediary organization or corporation working with the member. Soft costs, including intermediary fees, of up to 20% of hard costs are allowed. 13 Accessibility Rehabilitation

14 AHP Set-aside Products Eligible Uses of Funds  Maximum funding of $15,000 available per homeowner  Funds are to be used for the rehabilitation of an existing owner-occupied unit 14

15 AHP Set-aside Products Property Eligibility Requirements 15 Eligible Properties  Owner-occupied units that are intended as the primary residence of the homebuyer -Single Family detached (1-4 Units) -Condominiums -Townhouses -Cooperatives -Manufactured and Mobile Housing Must be titled as real property in accordance with the laws and requirements of the jurisdiction where the property is located  Have at least one year current ownership -Life estate -A full interest in the fee title  Eligible Geographic Areas: FHLBank Atlanta District Alabama, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia

16 AHP Set-aside Products Example Habitat for Humanity works with low and moderate income families as well as the elderly homeowners throughout the state to achieve the organization’s goal of safe and decent affordable housing Habitat has identified 15 low and moderate income homeowners in need of energy efficiency/ accessibility repairs Rehabilitation cost will be $10,000 per home Inspection costs before and after completion of repairs will be $250 per home How much will Habitat earn if they coordinate the repairs for all 15 homes? Note: All participating homeowners must complete financial literacy counseling with CredAbility for a fee of $150

17 AHP Set-aside Products Maximum Available Funding (per home) $ 15,000 Rehab costs $ 10,000 Soft Costs – 20% $ 2,000 Total Cost for this Home$12,000 Maximum Soft Costs $ 2,000 Member Financial Institution ($200) CredAbility Counseling Fee ($150) Inspection fees paid ($250) Habitat will earn $1,400 * 15 $21,000 Example

18 AHP Set-aside Products 18 Tools for Success Product Expertise Technical Assistance Webinars/ Workshops Product Brochures Training Materials Interactive Website Customizable Product Brochures Audience Specific Messaging FHLBank Atlanta will provide:

19 AHP Set-aside Products Member financial institutions will submit applications to FHLBank Atlanta on behalf of the homebuyer/ homeowner Upon the approval of all documentation required for funding FHLBank Atlanta will credit funds to the member financial institution’s demand deposit account Member financial institutions will disburse funds: Prior to loan closing for purchase products After work is completed for rehabilitation products Intermediaries apply for funds for eligible homebuyers/ homeowners through an FHLBank Atlanta member financial institution How To Apply

20 AHP Set-aside Products Do You Have Deal?...Give us a call! How To Get Started New AHP Set-Aside Product Users 1.Execute the Set-aside Product Agreement 2.Designate a Program Manager 3.Submit Your Applications Required with initial application for funding: –Sample retention documents (note and mortgage) – Completion of product training 20

21 AHP Set-aside Products We are happy to help Do You Have Any Questions?

22 AHP Set-aside Products Business and Relationship Development General Information, Member Activation, Product Eligibility, etc. (800) , Option 3, Option 3 ShaDonte Dozier (DC, MD, SC, VA) CIS Business and Relationship Development Manager Louis Freeman (AL, FL, GA, NC) CIS Business and Relationship Development Manager Johnetta Tinsley CIS Lending & Disbursement Documentation Specialist Contact Us For More Information 22


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