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1 FHLBank Atlanta Community Investment Services Product Overview Fuller Center for Housing Covenant Partner Conference January 25, 2013 1.

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Presentation on theme: "1 FHLBank Atlanta Community Investment Services Product Overview Fuller Center for Housing Covenant Partner Conference January 25, 2013 1."— Presentation transcript:

1 1 FHLBank Atlanta Community Investment Services Product Overview Fuller Center for Housing Covenant Partner Conference January 25,

2 Title of Presentation Like every “dividend,” predicated upon earnings “Equity-like” capital for real estate transactions Direct & indirect benefits to shareholders, developers, homebuyers, tenants, and the community Unique offering to Shareholder and Community FHLBank Products Community Dividend Earnings 10 percent 2 = Connecting the Dots

3 Growing communities create demand for additional financing FHLBank Atlanta provides “equity-like” funding enabling shareholders to make transactions viable and attract new customers Funds are invested in community- based transactions generating successful lending opportunities FHLBank Atlanta Shareholder Community Shareholder originations create demand for advances Indirect Benefit New and rehabbed housing, growing local tax base; job creation Direct Benefit Viable lending, new customers; reduced loan risk 3 Connecting the Dots

4 Title of Presentation Benefits for Covenant Partners Generate fee income from performing rehabilitation work Reach new customer markets and grow your business Lower energy costs and improve the safety and accessibility of your customers' homes Access to products that can be used with other funding sources Single source offering purchase or rehabilitation funding Streamlined application process Minimal reporting requirements 4

5 Title of Presentation AHP Set-aside Products Purchase Products Foreclosure Recovery Product (FRP ) Community Stability Product (CSP) Veterans Purchase Product (VPP) First-time Homebuyer Product (FHP) Returning Veterans Purchase Product (RVPP) Energy Efficiency/ Weatherization Rehabilitation Product (EWP) Accessibility Rehabilitation Product (ARP) Rehabilitation Products Veterans Rehabiliation Product (VRP) Returning Veterans Rehabiliation Product (RVRP)

6 Title of Presentation Purchase Products First-time Homebuyer (FHP) Community Stability (CSP) Foreclosure Recovery (FRP) Eligible Use of Funds Down-payment and closing cost assistance for first-time homebuyers Down-payment and closing cost assistance for homebuyers purchasing in areas targeted for stabilization by federal, state, or local government Down-payment and closing cost assistance for homebuyers purchasing properties from an FHLBank Atlanta member’s REO portfolio Maximum Subsidy Per Unit $5,000 $15,000 Matching Subsidy Ratio 4 to 1 Borrower Minimum Contribution $1,000 Retention Period 5 years 6

7 Title of Presentation Rehabilitation Products Energy Efficiency/ Weatherization (EWP) Accessibility Rehabilitation (ARP) Eligible Use of Funds Energy efficiency and weatherization rehabilitation of an existing owner-occupied unit Safety and accessibility rehabilitation of an existing owner- occupied unit Maximum Subsidy Per Unit $12,000 Qualified Improvements Exterior Doors HVAC Systems Insulation Water Heaters Roof Windows Low-flow plumbing fixtures Floors Walls Exterior ramp, sidewalk, or driveway Handicapped bathrooms, including sink toilet, shower, grab bars, and vanities Kitchen cabinets and sinks Carpentry to widen doorways Replacement of floor coverings Eligible Borrowers Owner must have at least one year current ownership by life estate or full interest in the fee title Retention Period 5 years 7

8 Title of Presentation Veterans Products Veterans Purchase (VPP) Returning Veterans Purchase (RVPP) Veterans Rehabilitation (VRP) Returning Veterans Rehabilitation (RVRP) Eligible Use of Funds Down payment, closing costs, or rehabilitation assistance and counseling for the purchase or purchase/rehabilitation of an existing unit Rehabilitation of an existing owner-occupied unit Qualified improvements include: Exterior doors, heating, ventilation and air conditioning systems, insulation, roof, windows, low-flow plumbing fixtures, exterior ramp, sidewalk, or driveway, handicapped bathrooms, including sink, toilet, shower, grab bars, and vanities, kitchen cabinets and sink, carpentry to widen doors, replacement of door coverings Eligible Borrowers Homebuyers that are currently serving or have served in any branch of the U.S. military, or their surviving spouses Homebuyers that are currently serving or have served in an overseas military intervention for any branch of the U.S. military, or their surviving spouses Homeowners that are currently serving or have served in any branch of the U.S. military, or their surviving spouses Homebuyers that are currently serving or have served in an overseas military intervention for any branch of the U.S. military, or their surviving spouses Maximum Subsidy Per Unit $7,500$10,000$12,500$15,000 Borrower Minimum Contribution/ Matching Subsidy No borrower contribution or matching subsidy required Retention Period 5 years 8

9 Title of Presentation Funding Parameters for Rehab Products 9

10 Title of Presentation How can Covenant Partners Access Products? Covenant Partner works with low and moderate income families as well as the elderly homeowners to achieve the organization’s goal of energy efficient affordable housing The partner has identified 15 low and moderate income homeowners in need of energy efficiency/ accessibility repairs Total cost will be $12,000 per home (rehab plus soft costs) Inspection costs before and after completion of repairs will be $250 per home How much will the Covenant Partner 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 10

11 Title of Presentation Rehab Product Example Approved Rehab costs $ 10,000 Soft Costs – 20% $ 2,000 Total Rehab Cost for Each Home$12,000 Fee Income Calculation Maximum Soft Costs $ 2,000 CredAbility Counseling Fee ($150) Inspection fees paid ($250) Per Unit Fee Income Earned$1,600 11

12 Title of Presentation Easily Accessible Funding! Member financial institutions submit applications to FHLBank Atlanta Upon approval the Bank will credit funds to the member financial institution’s demand deposit account Member financial institutions will disburse funds to intermediaries or contractors after work is completed for rehab products Homebuyers and homeowners will work with Covenant Partners to apply for funds through a member financial institution 12

13 Title of Presentation Ready to Get Started? Resources available for identifying FHLBank Atlanta members: List of Participating Members FHLBank Atlanta Member Directory 13

14 First Tuskegee Bank and the City of Montgomery, AL 14

15 Title of Presentation Contact Us for More Information Business and Relationship Development ShaDonte Dozier CIS Business and Relationship Development Manager Visit our website at 15 AHP Ownership Products 15

16 Overview FHLBank Atlanta Questions? 16


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