FHLBank Pittsburgh Community Investment Department Project Financing Tools

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FHLBank PittsburghCommunity Investment
Department Project Financing Tools
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FHLBank Pittsburgh

• One of 12 FHLBanks
• Established by Congress in 1932
• Wholesale bank, providing liquidity to
  owner-members
• District includes Delaware, Pennsylvania, West
  Virginia
• Earnings set-aside for community investments

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Community Investment Products

• Affordable Housing Program
• Banking on Business
• First Front Door
• Community Lending Program
• Other Products
• Letters of Credit

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Affordable Housing Program (AHP)

• Supports the development of affordable housing
  for households at or below 80 of AMI (using
  HUDs guidelines).
• Direct subsidy (grants) or low-interest loan up
  to 650,000
• Competitive application
• Available to private nonprofit, governmental and
  for-profit institutions
• Must be submitted through a FHLBank Pittsburgh
  member in good standing.

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Eligible AHP Activities

• Homeownership
• Multi-family
• Acquisition
• Rehabilitation
• Down payment/closing costs

• Rental
• Single-family
• New construction
• Scattered site
• Mortgage write-down
• Special needs

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2008 Scoring Guidelines100 point system

• Scoring Categories Point Allocation
• Use of Donated Properties 5
• Sponsorship by Nonprofit 5
• Targeting 20
• Housing for the Homeless 5
• Subsidy per Unit 5
• Economic Empowerment 10

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2008 Scoring Guidelines (cont.)

• Scoring Categories Point Allocation
• Community Stability 25
• Special Needs 7
• Economic Diversity 5
• Rural 5
• Operating Efficiency 8

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2008 Application Closed

• 2009 funding round nformation to be announced in
  January 2009. Watch the website for details.
• www.fhlb-pgh.com/housing-and-community
  /programs/affordable-housing-program. html

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Banking on Business Program

• Recoverable assistance financing for small
  businesses (both start-up and expansion)
• Available through FHLBank Pittsburgh Members
• BOB loan flows through member banks to the
  business
• But for criteria
• Can be up to half of members primary loan, but
  no more than 200,000
• Can be in conjunction with EDA and SBA loans

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Eligible Vs. Ineligible Uses

• Eligible
• Real estate (land/bldg)
• Expansion of facility
• Capital equipment
• Leasehold improvements
• Perm. working capital
• Closing costs

• Ineligible
• Small businesses in the financial, insurance,
  investment real estate, or government sectors or
  non-profit organizations
• Illegal, immoral, or other reasons as determined
  by the FHLB.
• To solely reduce/ refinance existing debt
• Housing development

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BOB Repayment Terms

• Year Schedule
• 1 No Repayment
• 2 Principal Amortization
• 3
• 3 Principal Amortization
• 6
• And Primary Loan on Members Standard Commercial
  Terms.

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Recoverable Assistance Repayment Terms

• Term is lesser of seven years or member loan term
• If R.E. 50 of project, then lesser of ten
  years or member loan term

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Important 2008 BOB Notes

• Typical Funding Rounds
• February
• August
• Watch www.fhlb-pgh.com/housing-and-community/progr
  ams/banking-on-business .html for details

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• Down payment/closing cost assistance for
  first-time homebuyers with household income at or
  below 80 of the area median income
• Matching grant, every 1 of the homebuyers money
  is matched with 3 up to a maximum of 5,000
• FFD assistance is only available thru FHLBank
  Pittsburgh members

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Eligibility

• First-time home buyers
• 80 or less of Area Median Income
• Matching requirement 31
• FHLBank Member Bank makes first mortgage

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First Front Door

• Go to www.firstfrontdoor.com
• Links
• Income Limits
• Approved counseling organizations
• FHLBank members enrolled in First Front Door

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FHLBank Pittsburgh Letter of Credit

• Purpose must meet tests of Housing and Economic
  Recovery Act of 2008
• Member Institution LOCs confirmed with a
  AAA-Rated FHLBank LOC

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For more information, check out our web
page www.fhlb-pgh.com Or Call your Community
Investment Department Representative Laura
Kemp-Rye 304-291-5485