1. 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

2. 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?

3. FHLBank Atlanta Overview

4. 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.

5. 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

6. 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

7. 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

8. FHLBank Atlanta Affordable Housing Products (AHP)

9. 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

10. 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

11. 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

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

13. FHLBank Atlanta AHP Supportive Housing

14. 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

15. 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

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

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

18. % Total Projects With Supportive Housing
Supportive Housing Rental LIHTC vs. Rental Non-LIHTC,
Over the last five years,
50.2% of all rental projects awarded include supportive housing units
Project Type
Total # Projects
# 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%

19. 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 /2016

20. 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 /2016

21. How Can We Help You Succeed?

22. How Can We Help You Succeed? Contact Us
Contact Us For More Information
, Option 3, Option 1, Option 3
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