NC Affordable Housing Conference 2017 Leveraging Federal Home Loan Bank of Atlanta Financing for Supportive Housing Presented by Art Fleming, Senior Vice President and Director of Community Investment Services Thursday, October 26, 2017 Raleigh, NC

Our Discussion Today Opening Remarks FHLBank System Overview FHLBank Atlanta Affordable Housing Program (AHP) Products FHLBank Atlanta AHP Supportive Housing Connecting the Dots – Scale and Impact North Carolina Supportive Housing Deals How Can We Help You Succeed?

FHLBank Atlanta Overview

FHLBank System Overview Support housing finance and community investment Cooperative Commercial banks Credit unions Insurance companies CDFIs Housing Associates State and local housing finance agencies Each FHLBank is owned and operated independently Federal Housing Finance Agency regulates the FHLBank system Federal Home Loan Banks all are regulated by the Federal Housing Finance Agency (FHFA) FHFA also regulates Fannie and Freddie. So what’s the difference between the FHLBanks and Freddie/Fannie? We’re not in conservatorship, for one , but primarily the difference is that Fannie and Freddie create liquidity by purchasing whole loans, but the FHLBanks provide liquidity by raising capital on the international markets. Borrowing rate are based on risk, and the FHLBanks raise capital with the implied full faith and credit of the US government, which is to say at a very favorable rate. We can then pass those savings on to our shareholders with a small markup, which generates revenue for the FHLBanks.

FHLBank System Overview FHLBanks Play a Key Role in Financial Services Total Assets: $1.06 trillion* Total Advances: $705.2 billion* Net Income: $3.4 billion* as of December 31, 2016 Provide wholesale products and services to approximately 7,000 member financial institutions Increase and expand the availability of funds for residential mortgage and community development lending nationwide

FHLBank Atlanta – Financial Highlights December 31, 2016 Total Assets: $138.7 billion Total Advances (loans): $99.1 billion 2016 Net Income: $278 million Retained Earnings: $1.9 billion Fourth Quarter 2016 Dividend: 4.77% Total Membership: 901 institutions

FHLBank Atlanta Shareholders 212 Credit Unions 79 Savings Banks 29 Insurance Companies 16 Housing Associates 7 Non-Depository CDFIs 2 Corporate Credit Unions 2 Captive Insurance Companies This slide shows the types of institutions make up the Atlanta Bank…. 545 Commercial Banks 892 Total Members As of September 30, 2017

FHLBank Atlanta Affordable Housing Products (AHP)

FHLBanks Products and Services Advances Provides FHLBank members low-cost financing for lending in their communities Mortgage Partnership Finance ® (MPF ®) Program and Mortgage Purchase Program (MPP) Empowers small- to medium-size FHLBank members to originate more mortgages. Provides an alternative to Fannie Mae, Freddie Mac, and Ginnie Mae for the sale/securitization of mortgage loans Letters of Credit Provide credit enhancement on bonds for residential and economic development Affordable Housing Program (AHP) Real estate funding for the acquisition, development, construction, or rehabilitation of affordable housing Ownership or rental Single-family or multifamily

Value to Your Business AND Your Community Affordable Housing Program (AHP) AHP Competitive – rental and ownership New construction/rehabilitation Single-family/multi-family Acquisition/owner-occupied AHP Set-aside – ownership only Down payment and closing cost assistance Rehab assistance Veterans Focus Commercial loan officers CRA officers Business development officers Single-family mortgage loan officers CRA officers Business development officers Community Investment Program (CIP)/ Economic Development Program (EDP) Commercial loan officers CRA officers Business development officers Discounted advance products for residential or economic development projects

Connecting the Dots: Scale and Impact of AHP $734.9 million since 1990 116,276 units Leverage ratio = 1:14 AHP Competitive Program $190.8 million since 1997 28,018 units Leverage ratio = 1:21 AHP Set-aside Program 10 percent Community Investment Program Real estate finance “equity” enables residential development and/or rehabilitation Enable Shareholders to grow business, reduce transactional risk and achieve CRA regulatory objectives Capitalized via 10% of Net Earnings Economic Development Program $7.8 billion Low-cost CICA advances for community economic & affordable housing As of September 2017

FHLBank Atlanta Affordable Housing Program (AHP) Scale and Impact Profile May 2017

FHLBank Atlanta AHP Supportive Housing

FHLBank Atlanta Supportive Housing Housing projects that include low- to moderate-income units reserved for individuals and families that are homeless, mentally or physically disabled, recovering from physical or substance abuse, or have HIV/AIDS. Project: Moore Place, Charlotte, NC Sponsor: Charlotte Center for Urban Ministry, Inc. $1 million AHP award for supportive housing for homeless residents AHP Rental Supportive Housing AHP Cumulative Impact

Supportive Housing Embedded in a Variety of AHP Transactions Rental (Income Producing) Types LIHTC Non-LIHTC multi-family Mixed-use Use of Funds Acquisition New construction and/ or rehabilitation Development soft costs Supportive Housing (Non Income Producing) Low to moderate income units reserved for individuals and families that are homeless, mentally or physically disabled, recovering from physical or substance abuse, or have HIV/AIDS. Ownership Transactions Down-payment assistance Owner-occupied rehabilitation Project: Williams Square Apartments, Durham, NC AHP Investment: $160,000 (Direct Subsidy) / $316,000 AHP Advance Total Development Cost: $2,242,861 24 Units of Supportive Housing Project: New Hope, Winston-Salem, NC AHP Investment: $150,000 Total Development Cost: $1,499,021 10 Units of Supporting Housing

Scale of AHP Supportive Housing Projects, 1990-2017 NC 15% (186) 186 of the 1,212 (15%) Supportive Housing projects are located in North Carolina

% Total Projects With Supportive Housing Supportive Housing Rental LIHTC vs. Rental Non-LIHTC, 1990-2017 Project Type Total # Projects # Projects With Supportive Housing % Total Projects With Supportive Housing 1990-2017 Rental - LIHTC 948 494 52% Rental Non-LIHTC 569 410 72% Total 1,517 904 60%

% Total Projects With Supportive Housing Supportive Housing Rental LIHTC vs. Rental Non-LIHTC, 2013-2017 Over the last five years, 50.2% of all rental projects awarded include supportive housing units Project Type Total # Projects 2013-2017 # Projects With Supportive Housing % Total Projects With Supportive Housing Rental - LIHTC 179 71 40% Rental Non-LIHTC 74 56 76% Total 253 127 50.2%

FHLBank Atlanta’s Supportive Housing AHP Example Project: Moore Place, Charlotte, NC – Supportive Housing for Homeless Units: 85 Very Low-income Units Sponsor: Charlotte Center for Urban Ministry, Inc. AHP Award: $1 million awarded for supportive housing for homeless residents Permanent Sources and Uses Total Costs AHP Member Other Sources Acquisition $169,833 Construction $4,357,300 $1,000,000 $61,600 $3,295,700 Soft Costs $1,243,565 $469,098 $774,467 Other Costs $469,302 Total Development Budget $6,240,000 $4,240,000 Supportive housing data 1991- 9/2016

FHLBank Atlanta’s Supportive Housing AHP Example Supportive Housing, New Construction Sanford, NC - 29 Very Low-income Units Construction Sources and Uses Total Costs AHP Member Other Sources Acquisition $100,000 Construction $1,464,367 $350,000 $198 $1,114,169 Soft Costs $193,717 $74,170 $119,547 Other Costs $103,000 Total Construction Budget $1,861,084 $277,368 $1,233,716 Supportive housing data 1991- 9/2016

How Can We Help You Succeed?

How Can We Help You Succeed? Contact Us Contact Us For More Information 800.536.9650, Option 3, Option 1, Option 3 Visit our website at www.fhlbatl.com