Download - 2019 North Carolina Affordable Housing Forum

2019 North Carolina Affordable Housing Forum

Leveraging FHLBank Atlanta’s Structured Partnerships

October 8, 2019

Fred DodsonCharlotte Mecklenburg

Housing Partnership, Inc.Chief Operating Officer and Executive Vice President

Arthur FlemingFHLBank Atlanta

Senior Vice President and Director of Community Investment Services

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

INTRODUCTION TO FHLBANK ATLANTA

FEDERAL HOME LOAN BANK OF ATLANTA 3

FHLBanks Play a Key Role in Financial Services

4

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


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 of Columbia


FHLBank Atlanta – Financial HighlightsAs 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

6FEDERAL HOME LOAN BANK OF ATLANTA

FHLBank Atlanta Shareholders As of June 30, 2019

9 CDFIs231 Credit Unions

37 Insurance Companies

65 Savings Banks

493 Commercial Banks

835 Total Shareholders

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Credit Unions

Insurance Companies

Savings Banks

Commercial Banks

Community DevelopmentFinancial Institutions (CDFIs)


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 FHLBankAtlanta shareholders low-cost financing for lending in their communities


AFFORDABLE HOUSING PRODUCTS AND SERVICES


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


FHLBank Atlanta Community Investment Services Products

AHP Competitive

Rental and Ownership Development Mortgage Purchase

CIP/EDPHomeowner 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

officers• CRA officers• Business development officer

Mortgage Professional DrivenOwner-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 DrivenEnables 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 DrivenNew construction

Rehabilitation

Multifamily

Single-family

Acquisition

Construction and/or permanent financing


AHP Competitive Program (Rental)


Moore Place Charlotte, NCAHP Investment: $1,000,000Total Development Cost: $6,240,000

The Mulberry Senior ApartmentsCharlotte, NCAHP Investment: $500,000Total 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

How Often Do We Offer the AHP Competitive Program?

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FHLBank Atlanta AHP Competitive 3-Year Application Schedule


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 countiesAmounts vary per partner


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


Teachers Healthcare Workers Firefighters Law Enforcement Officers

Disaster Recovery


Power of Equity


Case Study: The Mulberry Senior Apartments

18POWER 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 older. There are 54 two-bedroom units at 942 square feet and 50 one-bedroom units at 670 square feet.


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 EQUITYFEDERAL 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 EQUITYFEDERAL HOME LOAN BANK OF ATLANTA

Power to Connect


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

22FEDERAL 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 CONNECTFEDERAL HOME LOAN BANK OF ATLANTA

Power to Connect: Homebuyer to Shareholder

24POWER 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.”

200+Shareholder

Business Contacts


Power of Knowledge


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

Power of Knowledge: Achieving CRA Success

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The Bank’s CRA Center of Excellence

CRA BusinessDevelopment

Forum

CRA Consultation

CRA Follow-up Session

Business Development

Luncheon

FEDERAL HOME LOAN BANK OF ATLANTA POWER of KNOWLEDGE 28

STRUCTURED PARTNERSHIPS


Description

Structured arrangement between FHLBankAtlanta 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 online portal

Fund Matching• Grant funds committed on at least a 2:1 ratio, carried

out on a transactional basis


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

Structured Partnership Product (SPP)P

alm

Bea

ch C

ount

y •$1.5 Million Total

•$1.0 Million Palm Beach

•$500,000 AHP

•Focused on veterans

City

of S

avan

nah •$600,000 Total

•$400,000 City of Savannah

•$200,000 AHP

•Borrowers within the city limits of Savannah Atla

nta

Bel

tLin

e •$600,000 Total

•$400,000 Atlanta Beltline

•$200,000 AHP

•Borrowers along the Atlanta Beltline Planning Area C

ity o

f Col

umbi

a •$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


COMMUNITY HEROES INITIATIVE


Shareholder-focused Products: Community Heroes

Community Heroes$4.5 Million

Leveraging up to $13.5 Million

Up to a total of $18 Million

Structured ArrangementPower 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

opportunities


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

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


Community Heroes Structured Partnerships As of August 2019

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Alabama Housing Finance Authority

City of Tampa, FLHousing 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


QUESTIONS?


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Contact Us

Contact Us For More Information800.536.9650, Option 3, Option 1

Visit our website at www.fhlbatl.com

Arthur FlemingSVP, Director of Community Investment [email protected]

ShaDonte ButlerAVP, Community Investment Business Development Manager [email protected]

Joel BrockmannAVP, Production [email protected]

Jan HadderVP, Associate Director of Community Investment [email protected]

Rasheed BraceyAVP, CIS Strategic Initiatives Lead404.888.8366 [email protected]
