2019 North Carolina Affordable Housing Forum Leveraging FHLBank - - PowerPoint PPT Presentation

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2019 North Carolina Affordable Housing Forum Leveraging FHLBank - - PowerPoint PPT Presentation

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2019 North Carolina Affordable Housing Forum Leveraging FHLBank Atlantas Structured Partnerships Arthur Fleming Fred Dodson FHLBank Atlanta Charlotte Mecklenburg Housing Partnership, Inc. Senior Vice President and Director of Community

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2019 North Carolina Affordable Housing Forum

Leveraging FHLBank Atlanta’s Structured Partnerships

October 8, 2019

Fred Dodson Charlotte Mecklenburg Housing Partnership, Inc. Chief Operating Officer and Executive Vice President Arthur Fleming FHLBank Atlanta Senior Vice President and Director of Community Investment Services

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Our Discussion Today

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Introduction to FHLBank Atlanta Affordable Housing Program Products and Services

Leveraging products as customer lead generators Business development events to drive relationships Enhance your capacity and expertise to generate loans

Structured Partnerships Community Heroes Initiative Questions and Answers POWER of KNOWLEDGE POWER of EQUITY POWER to CONNECT

FEDERAL HOME LOAN BANK OF ATLANTA

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INTRODUCTION TO FHLBANK ATLANTA

FEDERAL HOME LOAN BANK OF ATLANTA 3

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FHLBanks Play a Key Role in Financial Services

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FHLBank System

Increase and expand the availability of funds for residential mortgage and community development lending nationwide Provide wholesale products and services to approximately 6,800 member financial institutions

FEDERAL HOME LOAN BANK OF ATLANTA

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FHLBank System Overview

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The FHLBanks are government-sponsored enterprises, or “GSEs,” created by the Federal Home Loan Bank Act of 1932 FHLBank Atlanta is one of 11 district banks in the Federal Home Loan Bank System FHLBank Atlanta’s district comprises Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and the District

  • f Columbia

FEDERAL HOME LOAN BANK OF ATLANTA

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FHLBank Atlanta – Financial Highlights

As of June 30, 2019

  • Total Assets: $149.7 billion
  • Total Advances (loans): $101.8 billion
  • Second Quarter Net Income: $93 million
  • Retained Earnings: $2.1 billion
  • Second Quarter 2019 Dividend: 6.36%
  • Total Membership: 835 institutions

6 FEDERAL HOME LOAN BANK OF ATLANTA

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FHLBank Atlanta Shareholders

As of June 30, 2019 9 CDFIs 231 Credit Unions 37 Insurance Companies 65 Savings Banks 493 Commercial Banks

835 Total Shareholders

7 Credit Unions Insurance Companies Savings Banks Commercial Banks Community Development Financial Institutions (CDFIs) FEDERAL HOME LOAN BANK OF ATLANTA

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FHLBank Atlanta’s Products and Services

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Affordable Housing Program (AHP)

  • Real estate funding for the

acquisition, development, construction, or rehabilitation of affordable housing

  • Ownership or rental
  • Single-family or multifamily

Community Heroes Initiative

  • Creates partnerships

between FHLBank Atlanta and local governments or housing finance agencies (HFAs)

Letters of Credit

  • Provide credit

enhancement on bonds for residential and economic development

Advances

  • Provide FHLBank

Atlanta shareholders low-cost financing for lending in their communities FEDERAL HOME LOAN BANK OF ATLANTA

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AFFORDABLE HOUSING PRODUCTS AND SERVICES

9 FEDERAL HOME LOAN BANK OF ATLANTA

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Affordable Housing Program

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Products

  • Rental products
  • Homeownership products
  • Structured partnership products
  • Letters of Credit

Services

  • Connecting you with the business drivers in North Carolina

– Realtors, Developers, HFAs, Nonprofits

  • Providing resources to help support your market’s housing needs

FEDERAL HOME LOAN BANK OF ATLANTA

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FHLBank Atlanta Community Investment Services Products

AHP Competitive

Rental and Ownership Development Mortgage Purchase

CIP/EDP Homeowner Assistance

Advance

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  • Down payment, closing costs, and

principal reduction funding for home purchase or home rehabilitation

  • Generally first come, first served
  • Shareholder contacts:
  • Single-family mortgage loan
  • fficers
  • CRA officers
  • Business development officer

Mortgage Professional Driven

Owner-occupied Products: First-time homebuyer, Community Partners, Veteran, Community Rebuild and Restore, Foreclosure Recovery

  • Discounted advance products for

residential or economic development projects

  • Generally first come, first served
  • Shareholder contacts:
  • Commercial loan officers
  • CRA officers
  • Business development officers

Shareholder Driven

Enables Housing Development and Community Revitalization Activities

  • $500,000 for rental or ownership

development projects

  • Competitive application - each

FHLBank has its own scoring criteria

  • Shareholder contacts:
  • Commercial loan officers
  • CRA officers
  • Business development officers

Developer / Builder Driven

New construction Rehabilitation Multifamily Single-family Acquisition Construction and/or permanent financing

FEDERAL HOME LOAN BANK OF ATLANTA

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AHP Competitive Program (Rental)

12 FEDERAL HOME LOAN BANK OF ATLANTA

Moore Place Charlotte, NC AHP Investment: $1,000,000 Total Development Cost: $6,240,000 The Mulberry Senior Apartments Charlotte, NC AHP Investment: $500,000 Total Development Cost: $15,870,068

Reduces Project Debt Service Use of Funds

  • Permits a reduction in project

rents to enable affordability

  • Acquisition
  • Rehabilitation
  • New construction
  • Permanent funding

Low-Income Housing Tax Credit (LIHTC) Non-LIHTC Multifamily Mixed-use Supportive Housing

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How Often Do We Offer the AHP Competitive Program?

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FHLBank Atlanta AHP Competitive 3-Year Application Schedule

FEDERAL HOME LOAN BANK OF ATLANTA

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Shareholder-focused Homeownership Products

First-time Homebuyer Product $5,000 Foreclosure Recovery Product $15,000 Veterans Purchase Product $7,500 Returning Veterans Purchase Product $10,000 Community Rebuild and Restore $10,000 Community Partners Product $7,500

Purchase Products Rehabilitation Products Structured Partnerships

HFAs, cities, and counties Amounts vary per partner

14 FEDERAL HOME LOAN BANK OF ATLANTA

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Community Partners Product

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Designed to assist those who help others as a profession including current or retired law enforcement officers, educators, healthcare workers, firefighters, and other first responders Product Highlights:

  • Maximum subsidy is $7,500 per homebuyer
  • Funding is provided as a 4-to-1 match
  • The homebuyer contributes at least $1,000

Healthcare Workers Law Enforcement Officers

FEDERAL HOME LOAN BANK OF ATLANTA

Teachers Healthcare Workers Firefighters Law Enforcement Officers

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Disaster Recovery

16 FEDERAL HOME LOAN BANK OF ATLANTA

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Power of Equity

FEDERAL HOME LOAN BANK OF ATLANTA 17

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Case Study: The Mulberry Senior Apartments

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POWER of EQUITY

The Mulberry Senior Apartments is a 104-unit apartment community on Tuckaseegee Road off of Yahtzee Lane in West Charlotte. The community spans more than six acres and is for seniors age 55 and

  • lder. There are 54 two-bedroom units at 942 square

feet and 50 one-bedroom units at 670 square feet.

FEDERAL HOME LOAN BANK OF ATLANTA

Financing

  • $15.9 million project
  • The Home Depot Foundation
  • North Carolina Housing Finance

Agency – LIHTC Equity

  • SunTrust Community Capital –

construction loan and permanent mortgage loan

  • City of Charlotte’s Housing Trust

Fund

  • The Housing Partnership

Status

  • Completion Date:

February 2019

  • Fully leased
  • 100 percent occupied

The Numbers

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Impact of AHP on Rental, Home Construction, and Rehabilitation Activities

The multiplier is calculated based on factors presented in the study “Enhancing Lives, Impacting Communities: The Federal Home Loan Bank System” prepared by the Center for Economic Forecasting and Analysis, Florida State University, 2018.

POWER of EQUITY

FEDERAL HOME LOAN BANK OF ATLANTA

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The multiplier is calculated based on factors presented in the study “Enhancing Lives, Impacting Communities: The Federal Home Loan Bank System” prepared by the Center for Economic Forecasting and Analysis, Florida State University, 2018.

Impact of AHP on Home Purchase Activities

POWER of EQUITY

FEDERAL HOME LOAN BANK OF ATLANTA

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Power to Connect

FEDERAL HOME LOAN BANK OF ATLANTA 21

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Power to Connect: Business Drivers

  • Connecting: Developers, realtors, contractors, nonprofits, etc.
  • Marketing: Templates for marketing homeowner assistance products

available on FHLBank Atlanta’s website

  • Education and Outreach: FHLBank Atlanta will work with

shareholders to conduct webinars and other events to help attract, train, or retain customers

  • Scale and Impact Profiles: Reports for demonstrating shareholder

impact on job creation, local taxes, and local economies

22 FEDERAL HOME LOAN BANK OF ATLANTA

POWER to CONNECT

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https://cis.fhlbatl.com/ahp/utilities.portal

Easy to Use Point and Click Prequalification Tool Highest of Four Income Methodologies

Expanding Your Eligible Customer Base

POWER to CONNECT

FEDERAL HOME LOAN BANK OF ATLANTA

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Power to Connect: Homebuyer to Shareholder

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POWER to CONNECT Find a Member

  • Lenders that participate in AHP ownership and multifamily housing
  • Includes shareholder business contacts for multifamily and homeownership
  • Helps connect developers with shareholders

Messages below sent to shareholders

“I am interested in becoming a homeowner. I am a veteran and need additional information as to what I need to do to qualify. Please contact me as soon as possible.”

  • “Hello, I see your bank is a member of FHLBank Atlanta. I am

interested in a first time homebuyers or REO GRANT from FHLBank Atlanta. May I please have a current list of your REO PROPERTIES? Please contact me by email with a property list. I would like to purchase something in the next 1-3 months.”

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Shareholder Business Contacts

FEDERAL HOME LOAN BANK OF ATLANTA

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Power of Knowledge

FEDERAL HOME LOAN BANK OF ATLANTA 25

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Power of Knowledge: Forums to Discover New Opportunities

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Subject Matter Experts Roundtable Discussions

Business Development Forums and Events

  • Hosting events that focus on information gathering and fostering partnerships

to meet shareholders’ business objectives

– Inaugural CDFI and Minority Depository Institution (MDI) Forum held in April 2018 – CDFI Roundtable – Annual Member Conference – National Interagency Community Reinvestment Conference sessions

FEDERAL HOME LOAN BANK OF ATLANTA

POWER of KNOWLEDGE

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  • Community Reinvestment Act (CRA) purposes
  • Government relations
  • Press releases/branding

Shareholder Scale and Impact Profiles

Power of Knowledge: Telling Your Story

FEDERAL HOME LOAN BANK OF ATLANTA

POWER of KNOWLEDGE

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Power of Knowledge: Achieving CRA Success

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The Bank’s CRA Center of Excellence

CRA Business Development Forum CRA Consultation CRA Follow-up Session Business Development Luncheon

FEDERAL HOME LOAN BANK OF ATLANTA

POWER of KNOWLEDGE

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STRUCTURED PARTNERSHIPS

29 FEDERAL HOME LOAN BANK OF ATLANTA

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Description

Structured arrangement between FHLBank Atlanta and a state, local municipality, or HFA

  • Support the homeownership or rehabilitation of homes

purchased or owned by low- to moderate-income households

Lender Role and Participation

  • Funds are delivered to eligible households exclusively

via FHLBank Atlanta member financial institutions

  • Member financial institutions will manage intake,

processing, and funding of transactions via the Bank’s

  • nline portal

Fund Matching

  • Grant funds committed on at least a 2:1 ratio, carried
  • ut on a transactional basis

30 FEDERAL HOME LOAN BANK OF ATLANTA

FHLBank Atlanta funding for Structured Partnership Products is derived from the Bank’s annual contribution of 10 percent of net earnings to its AHP.

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Structured Partnership Product (SPP)

Palm Beach County

  • $1.5 Million Total
  • $1.0 Million Palm

Beach

  • $500,000 AHP
  • Focused on

veterans

City of Savannah

  • $600,000 Total
  • $400,000 City of

Savannah

  • $200,000 AHP
  • Borrowers within the

city limits of Savannah

Atlanta BeltLine

  • $600,000 Total
  • $400,000 Atlanta

Beltline

  • $200,000 AHP
  • Borrowers along the

Atlanta Beltline Planning Area

City of Columbia

  • $900,000 Total
  • $600,000 City of

Columbia

  • $300,000 AHP
  • Purchase of new

homes in targeted neighborhoods and energy efficiency rehab

Measures of Success:

  • Shareholder penetration
  • Production
  • Franchise value
  • Advancing shareholders’ brand through media

FEDERAL HOME LOAN BANK OF ATLANTA 31

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COMMUNITY HEROES INITIATIVE

32 FEDERAL HOME LOAN BANK OF ATLANTA

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Shareholder-focused Products: Community Heroes

Community Heroes $4.5 Million Leveraging up to $13.5 Million Up to a total of $18 Million

Structured Arrangement

Power of Equity Power to Connect Power of Knowledge

  • Customers earning >80 percent to 120

percent of area median income (AMI)

  • 3-to-1 funding match
  • HFAs, cities, and counties
  • Police, firefighters, and teachers
  • Media
  • Local government business
  • pportunities

33 FEDERAL HOME LOAN BANK OF ATLANTA

Though structured similarly, the Community Heroes initiative is not a Structured Partnership Product. Funding for Community Heroes is separate and distinct from AHP funding.

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New Initiative

  • Local structured partnerships focused on Community Heroes
  • Revitalization and stabilization objectives

Structured Partnership Entities

  • Municipalities
  • Counties
  • States
  • HFAs

Targeted Consumers

  • Community Heroes earning greater than 80 percent up to 120 percent AMI

– Law enforcement officers – Public school educators – Firefighters – Other first responders

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Description

FEDERAL HOME LOAN BANK OF ATLANTA

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Community Heroes Structured Partnerships

As of August 2019

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Alabama Housing Finance Authority City of Tampa, FL Housing Finance Authority of Pinellas County, FL Atlanta Police Foundation City of Asheville, NC South Carolina State Housing Finance and Development Authority Virginia Housing Development Authority City of Jacksonville, FL City of Charlotte, NC City of Gaithersburg, MD

FEDERAL HOME LOAN BANK OF ATLANTA

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QUESTIONS?

36 FEDERAL HOME LOAN BANK OF ATLANTA

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Contact Us

Contact Us For More Information

800.536.9650, Option 3, Option 1 Visit our website at www.fhlbatl.com

Arthur Fleming SVP, Director of Community Investment Services 404.888.8359

afleming@fhlbatl.com

ShaDonte Butler AVP, Community Investment Business Development Manager 404.888.8416

sbutler@fhlbatl.com

Joel Brockmann AVP, Production Manager 404.888.8156

jbrockmann@fhlbatl.com

Jan Hadder VP, Associate Director of Community Investment Services 404.888.8355

jhadder@fhlbatl.com

Rasheed Bracey AVP, CIS Strategic Initiatives Lead 404.888.8366

rboyd@fhlbatl.com

FEDERAL HOME LOAN BANK OF ATLANTA