CDA Extra CDA. Audio #: Passcode: # Please mute your phone *6. Federal Home Loan Bank of Boston

Transcription

1 CDA Program CDA Extra CDA Audio #: Passcode: # Please mute your phone *6 2012

2 What is the CDA Program Eligible Uses and Benefits Program Limits Rates Application Options Overview CDA Extra and CDA advances How the Application Process Works 2

3 CDA Program The CDA Program has two options to provide financing for predevelopment, purchase, construction, rehabilitation, or refinance: Housing (residential) Economic Development (nonresidential) Mixed Use (combination of residential & nonresidential) 3

4 Program Benefits Bank s lowest cost advances Expand community development lending Meet the credit needs of communities Easy to find qualifying loans Compete on term Lock in spread and term Mitigate interest rate risk Provide lower cost of funding to community CRA benefits 4

5 CDA Program Limits* Member Limits Total per member limit $50 million CDA Extra $15 million CDA $35 million No increases to annual limits are permitted 5

6 CDA is a discounted advance CDA Extra is a deeper discounted advance Available as Classic (bullet), amortizing, and member option advances CDA/CDA Extra available in terms from one year to 20 year maturity/30 year amortization Rates For Current Rates: 6

7 Application Options CDA Extra Housing/Economic Development Mortgage Financing Single or Multifamily Financing Economic Development (nonresidential) Mixed-Use (combined nonresidential/residential structure) Three-Month Look-back CDA Economic Development Economic Development (nonresidential) Mixed-Use (combined nonresidential/residential structure) Three-Month Look-back 7

8 CDA Extra Financing Members may use CDA Extra to fund: Future originations; Originations up to three months prior; Loan refinancing; Entities that make loans for eligible housing or economic development initiatives Participation interest in a loan consortium Purchase Low Income Housing Tax Credits; Purchase Mortgage Revenue Bonds/Mortgage-backed securities; or Creating or maintaining a secondary market for loans. 8

9 CDA Extra - Housing To qualify the initiative must be a residential initiative serving households based on the following: Income Eligibility: Housing initiatives serving families/ households with incomes at or below 115% of area median income for a family of four based on the income guidelines as published annually by HUD; or Manufactured housing parks where the initiative is located in a census tract with a median income at or below 115 percent of area median income based on the income guidelines as published by HUD. 9

10 CDA Extra - Housing Individual Owner-Occupied Units Initiative serving households h with incomes at or below 115% of AMI If initiative supports a mortgage financing program, the program must be: Part of a separate residential mortgage program Loans must be identifiable separate from standard loan portfolio Multifamily Owner-Occupied Units Multiple owner-occupied occupied initiative where 51% of the units are owned or targeted to families with incomes at or below 115% of AMI 10

11 CDA Extra - Housing Rental/Cooperative Units At least 51% units occupied by income-eligible families Rents for >51% units at <30% of income Manufactured Housing Parks At least 51% units occupied by income-eligible families Rents for >51% units at <30% of income Located in a census tract with median income at or below 115% of AMI 11

12 CDA Extra Profile of Success Housing Member: Brookline Bank Eligibility: 51% of units occupied by families with incomes at or below 115% AMI CDA Funds: $540,000 Location: Bedford, MA Rehabilitation of the Bedford Veterans Quarters that will provide 60 units of permanent single-room-occupancy housing on the grounds of the Edith Nourse Rogers VA Medical Center. 12

13 CDA Extra Profile of Success Housing Member: Eligibility: Bank of America 51% of units occupied by families with incomes at or below 115% AMI CDA Funds: $647,000 Location: Dorchester, MA Refinance of a four-story building that will provide 27 affordable housing rental units. All units will be targeted to households earning at or below 80 percent of the area median income. 13

14 CDA Extra Economic Development To qualify, the initiative must be a non-residential initiative serving households based on the following: Income Eligibility: Economic development initiatives benefitting families/households with incomes at or below 80 percent of area median income based on the income guidelines as published by HUD. CDA Extra can be used to support: Commercial initiatives Industrial/manufacturing initiatives Public-facility initiatives Social-service initiatives Public/private infrastructure projects 14

15 CDA Extra Economic Development Located in a census tract or neighborhood in which the median income does not exceed 80% of AMI Located in a Champion Community, Empowerment Zone, Enterprise Community, or Indian area; Creates/retains jobs for at least 51% of workers earning at or below 80% of AMI Benefits 51% of individuals or households earning at or below 80% of AMI 15

16 CDA Extra Profile of Success Economic Development Member: The Hanover Insurance Company Eligibility: Located in a census tract at or below 80% AMI CDA Funds: $46,300,000 Location: Worcester, MA Demolition and renovation of the former Worcester Common Fashion Outlet that will be converted into a 200,000 square foot office building and the creation of an 860-space parking lot. 16

17 CDA Extra Profile of Success Economic Development Member: Eligibility: Boston Private Bank & Trust Company Located in a census tract at or below 80% of AMI CDA Funds: $14,500,000 Location: Hyde Park, MA Demolition and conversion of the former Bay State Paper Mill into a 106,000 square foot retail complex. 17

18 CDA Extra Mixed-Use To qualify, the application must support a mixed-use initiative comprised of nonresidential and residential space: Eligibility: Initiative must satisfy the targeted income requirements for at least ONE of the eligibility criteria listed under Housing Initiatives AND Economic Development Initiatives. 18

19 Future originations; CDA Eligible Financing Members may use CDA to fund: Originations up to three months prior; Loan refinancing; i Entities that make loans for eligible economic development initiatives; or Participation interest in a loan consortium. 19

20 CDA To qualify, the initiative must be a non-residential, or mixed-use initiative serving households based on the following: Income Eligibility: Economic development initiatives benefitting families/households with incomes at or below: 115% of AMI for a rural initiative or 100% of AMI for an urban initiative CDA can be used to support: Commercial; initiatives Industrial/manufacturing initiatives Public-facility initiatives Social-service initiatives Public/private infrastructure projects 20

21 CDA Economic Development Individual Beneficiaries Creates or retains jobs for at least 51% of income-eligible eligible workers Benefits 51% of income-eligible families Geographic Beneficiaries urban initiatives serving households at or below 100% of AMI rural initiatives serving households at or below 115% of AMI Activity it Beneficiary i Initiative qualifies as a Small Business Located in: Income-eligible census tract Champion Community Empowerment Zone Enterprise Community brownfield Indian area Area affected by military base closing Federal or state-declared disaster area 21

22 CDA Profile of Success Economic Development Member: Eligibility: Passumpsic Bank Small Business Initiatives CDA Funds: $6,000,000 Location: New Hampshire/Vermont Financing to support small business initiatives located through out Vermont and New Hampshire, including Lyndon Rescue in Lyndon, Vermont. Lyndon Rescue is an ambulance service with 35 employees providing medical transportation across a 560-square-mile area of northeastern Vermont. 22

23 CDA Mixed-Use To qualify, the application must support a mixed-use initiative comprised of nonresidential and residential space: Eligibility: Initiatives must meet at least one of the eligibility criteria for economic-development. There are no eligibility requirements for the housing portion of a mixed- use initiative. 23

24 CDA Federal/State Disaster Eligibility: Economic-development initiatives responding to recovery efforts associated with a federal or state declared disaster areas. 24

25 Three-Month Look-back Eligibility Used to fund two or more loans originated up to three months before submitting application Can be used for the CDA Extra or CDA programs One application per application type An Excel spreadsheet is provided for each application type Loans will be reviewed based on application type 25

26 How The Application Process Works Easy to use online application Completed applications processed within 10 business days Approved applications expire after six months No reporting required No commitment to borrow No restrictions on incremental disbursements No obligation to match fund initiative No extension of approvals are permitted 26

27 Additional CDA Programs Benefit GNP Grants for New England Partnerships GNP awards are grants to eligible member institutions for distribution to the nonprofit organizations of their choice. In many cases, the nominating member matches the Bank's grant. Any members who submits and funds a CDA Extra or CDA Program application may also be eligible ibl to receive a GNP award provided d their approved application meets one of the 2012 eligibility criteria. Eligible members may receive an award of $1,000 or $2,000 depending on application eligibility and availability of funds. *As qualifying CDA and CDA Extra advances are disbursed, members will be notified of their eligibility to participate in the GNP program. 27

28 $1,000 GNP Eligibility 2012 GNP Eligibility Member with no CDA Extra or CDA approvals or disbursements in 2010 or 2011 CDA Extra/CDA economic development or CDA small business initiative $2,000 GNP Eligibility Documented mortgage origination or refinancing program designed to support foreclosure prevention CDA application designed to foster efforts to assist areas recovering from disasters 28

29 Where to Get More Information CDA Fact Sheet CDA Extra Fact Sheet HUD Income Guidelines html Income Eligibility (FFIEC) Rural Eligibility Empowerment/Enterprise Communities 29

30 Where to Get More Information *Paulette Vass, CDA Manager Additional Contacts Ken Willis, FVP/Director Mary Ellen Jutras, AVP/Assistant Director Theo Noell, Manager of Programs & Outreach (Fairfield, Hartford, Litchfield, & New Haven County CT) Community Investment Mangers Tobi Goldberg (ME & Essex County MA) Kathy Naczas (NH; VT; Berkshire, Franklin, Hampden, Hampshire, & Worcester County MA) Christine Rogers (RI; Tolland, New London, & Middlesex County CT; Barnstable, Bristol, Dukes, Middlesex, Nantucket, Norfolk, Plymouth, & Suffolk County MA) (toll free) 30

31 Where to Get More Information Paul Peduto First Vice President Thomas Driscoll Vice President Steve McHugh Vice President Loughlin Cleary Assistant Vice President Maria Nichols Assistant Vice President Money Desk (toll free) 31