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2018 NC Affordable Housing Conference “Housing Works”

2018 NC Affordable Housing Conference “Housing Works”. Leveraging FHLBank Atlanta’s Structured Partnerships. Jan Hadder Vice President and Associate Director of Community Investment Services October 25, 2018. Our Discussion Today . Introduction to FHLBanks

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2018 NC Affordable Housing Conference “Housing Works”

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  1. 2018 NC Affordable Housing Conference “Housing Works” Leveraging FHLBank Atlanta’s Structured Partnerships Jan Hadder Vice President and Associate Director of Community Investment Services October 25, 2018

  2. Our Discussion Today • Introduction to FHLBanks • Leveraging our AHP Products and Services to Advance your Objectives • Structured Partnerships with FHLBanks • Community Heroes Initiative • Q & A

  3. FHLBank Atlanta Introduction to FHLBanks

  4. FHLBanks Play a Key Role in Financial Services FHLBank System • 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 • Total Assets: $1.06 trillion* • Total Advances: $705.2 billion* • Net Income: $3.4 billion* • as of December 31, 2016

  5. FHLBank System Overview

  6. FHLBank Atlanta Shareholders As of March 31, 2018 7 CDFIs 219 Credit Unions 34 Insurance Companies 71 Savings Banks Credit Unions Insurance Companies Saving Banks Commercial Banks Community Development Financial Institutions 525 Commercial Banks 856 Total Shareholders FEDERAL HOME LOAN BANK OF ATLANTA

  7. FHLBank Atlanta – Financial HighlightsMarch 31, 2018 • Total Assets: $140.5 billion • Total Advances (loans): $91.7 billion • Net Income:$114 million • Retained Earnings: $2.1 billion • First Quarter 2018 Dividend: 5.78% • Total Membership: 856 institutions FEDERAL HOME LOAN BANK OF ATLANTA

  8. FHLBanks Products and Services

  9. Affordable Housing Products and Services Leveraging our Products and Services to Advance Your Objectives

  10. FHLBank Atlanta AHP Scale and Impact SCALE AND IMPACT

  11. Products and Services 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

  12. Mortgage Purchase and Home Rehab for Veterans Rental and Ownership Development What is the Affordable Housing Program? AHP Set-Aside Program AHP CompetitiveProgram • $500,000 for rental or ownership development projects • Competitive application • Each FHLBank has its own scoring criteria • Accessed only via member • Down payment, closing cost, and principal reduction grants for home purchase or home rehabilitation • Generally first come/first served • Accessed only via member • Member driven • Enables mortgage production • Single-family products • Down-payment assistance • Closing-cost assistance • First-time homebuyer • Developer / Builder driven • New construction • Rehabilitation • Multifamily • Single-family

  13. Rental Transaction Types AHP Competitive Program (Rental) Moore Place | Charlotte, NCAHP Investment: $1,000,000Total Development Cost: $6,240,000 Williams Square Apartments | Durham, NCAHP Investment: $160,000Total Development Cost: $2,242,861

  14. How Often Do We Offer the AHP Competitive Program? FHLBank Atlanta AHP Competitive 3-Year Application Schedule

  15. FHLBank Atlanta’s AHP Homeowner Assistance Products Purchase Products Rehabilitation Products First-time Homebuyer Product Community Partners Product Community Rebuild and Restore Foreclosure Recovery Product Veterans Purchase Product Structured Partnership Products Returning Veterans Purchase Product

  16. Educators FHLBank Atlanta’s AHP Homeownership Assistance Products - Community Partners Product Law enforcement 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 • Available to first-time homebuyers or non-first-time homebuyers Firefighters Law Enforcement Officers Healthcare Workers Households must be at 80 percent or below Area Median Income (AMI) to qualify for any of the products listed here. Households must be at 80 percent or below Area Median Income (AMI) to qualify for any of the products listed here.

  17. FHLBank Atlanta’s AHP Homeownership Assistance Products - Disaster Recovery

  18. FHLBank Atlanta Affordable Housing Program (AHP) Scale and Impact Profile December 2017 As of December 31, 2017

  19. ServicesExpanding Your Eligible Customer Base FHLBank Atlanta’s AHP Income Limit Methodology and Calculator • New Methodology and Calculator implemented in 2015 • Selects the greatest of four calculation methodologies • Point-and-click calculator automatically provides the highest income limit • 548 of 599 counties in the Bank’s district (91%) now have a higher income limit! Wake County, NC – Example above based on 4 person household FHLBank Atlanta Income Calculator Tool https://cis.fhlbatl.com/ahp/utilities.portal

  20. Services Connecting with Potential Customers • Lenders that participate in AHP Ownership and Multifamily Housing • “Find A Member” on the Bank’s website now includes member business contacts for multifamily in addition to existing homeownership • Helps connect developers with shareholders http://corp.fhlbatl.com/find-member/ 206 Shareholder Business Contacts Search Options Messages below sent to members via locator tool “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 FHLB. I am interested in a first time homebuyers or REO GRANT from FHLB 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..”

  21. Structured Partnerships with FHLBank Atlanta

  22. Description Structured arrangement between the Federal Home Loan Bank of Atlanta (FHLBank Atlanta) and a HFA, state, or local municipality (Entity) • Support the homeownership or rehabilitation of homes purchased or owned by low to moderate income households Lender Role and Participation • Grants funds will be delivered to eligible households exclusively via member financial institutions of the FHLBank Atlanta • Member financial institutions will manage intake, processing, and funding of transactions via the Bank’s online portal Match Requirement • 2:1 Match requirement (Partner : FHLBank Atlanta) • Carried out on a transactional basis

  23. Description Joint, Operational Workflow • Implemented as per a joint operational workflow that streamlines the application, processing, and funding requirements to create ease of use for the Bank’s member financial institutions Timeline • “Use it or lose it” philosophy where FHLBank Atlanta funds allocated to the arrangement will be released back to FHLBank Atlanta if not committed by a predetermined time period • “Sunset date” approximately first week in October of the calendar year in which the agreement is executed

  24. Value To You And The Communities You Serve • Additional, dedicated dollars for our partner’s designated focus/initiative, through FHLBank’s member financial institutions • Provides opportunity for our partner to become engaged with: • Additional lenders • Contractors • Nonprofits • Realtors • Other business drivers in your area

  25. Structured Partnership Products (SPP) Measures of Success: • Shareholder penetration • Production • Franchise value • Advancing shareholders’ brand through media

  26. Atlanta BeltLine, Inc.Housing Initiatives Program (HIP) Product Launched on March 2, 2015 • Purchase and rehabilitation of properties along the Atlanta BeltLine corridor • Member financial institutions will originate first mortgages with FHLBank Atlanta and provide customers with down payment assistance/rehabilitation grants • $600,000 Total – Phase One • $400,000 Atlanta Beltline • $200,000 AHP • Available to FHLBank Atlanta member financial institutions only • “Use it or Lose it” Deadline: October 2015 • Nine participating lenders

  27. Palm Beach County’sVeterans Homeownership Preservation Program Launched on January 9, 2015 • Purchase and rehabilitation assistance for Veterans and active duty military personnel • Member financial institutions will originate first mortgages with FHLBank Atlanta and provide customers with down payment assistance/rehabilitation grants • $1,500,000 Total • $1,000,000 Palm Beach County • $500,000 AHP • Available to FHLBank Atlanta shareholders only • “Use it or Lose it” Deadline: October 2015 • Five participating lenders

  28. City of Savannah, GA“Banking Works, Savannah!” Housing Initiative Launched on February 13, 2015 • Purchase and rehabilitation assistance for borrowers within the City limits of Savannah, GA • Member financial institutions will originate first mortgages with FHLBank Atlanta and provide customers with down payment assistance/rehabilitation grants • $600,000 Total • $400,000 City of Savannah • $200,000 AHP • Available to FHLBank Atlanta member financial institutions only • “Use it or Lose it” Deadline: October 2015 • Ten participating lenders

  29. VHDA PilotStrategic Home Improvement Program (SHIP) • Purchase and rehabilitation of REO properties in Virginia • Member financial institutions will originate first mortgages with FHLBank Atlanta and VHDA to provide customers with down payment assistance/rehabilitation grants • VHDA • $1 million used for rehabilitation grants/principal reduction • FHLBank Atlanta AHP Set-aside “Structured Partnerships Product” funding • $400 K down payment assistance • Available to FHLBank Atlanta member financial institutions only

  30. SPP Media Examples Press Release, City of Savannah Website Fri Feb13 2015 Palm Beach County Press Release, Tues Jan 12 2015 WSAV, Fri Feb13 2015 Palm Beach Post, Tues Jan 13 2015 Joint Press Release, Atlanta BeltLine Website Tues March 3 2015 WJCL News, Tues Feb 13 2015 WSB-TV, Action News Mon April 27 2015 Atlanta Business Chronicle, Wed March 4 2015

  31. Community Heroes Grant Funding Initiative A Federal Home Loan Bank of Atlanta Product

  32. Content • Description • Use of Funds • Purchase/Homebuyer Eligibility • Timeline • Structure of Proposal FEDERAL HOME LOAN BANK OF ATLANTA

  33. Description New Initiative • Local structured partnerships focused on Community Heroes • Revitalization and stabilization objectives Structured Partnership Entities • Municipalities • Counties • States • Housing Finance Agencies (HFAs) Targeted Consumers • Community Heroes earning greater than 80 percent up to 120 percent area median income (AMI) • Law enforcement officers • Public school educators • Firefighters • Other first responders FEDERAL HOME LOAN BANK OF ATLANTA

  34. Description Up to $4.5 Millionin Grants from FHLBank Atlanta Households must be greater than 80 percent AMI and shall not exceed 120 percent of AMI • Community Heroes • Leveraging up to $13.5 million in additional grants from local sources to support home purchase activities Local Structured Partnership entity (HFA, state, or local municipality) must provide at least 3 to 1 match All funding shall be extended exclusively via FHLBank Atlanta shareholder financial institutions Local entity will manage local structures, intake, processing, and funding $18 Million in Total Funding Available FEDERAL HOME LOAN BANK OF ATLANTA

  35. Description Funding Access and Availability • Accessible for all shareholders throughout the FHLBank Atlanta district • Access to every state in FHLBank Atlanta’s district • Encourages local and government initiatives in both urban and rural communities Structured Partnership • Generally 18 month Memorandum of Understanding (MOU) term • MOUs include a “use it or lose it” provision where Bank funds committed will be released back to the Bank for redeployment to another structured partnership if not used by the sunset date • Proposals accepted as long as there are available funds • Proposals to be submitted by local entities FEDERAL HOME LOAN BANK OF ATLANTA

  36. Use of Funds FEDERAL HOME LOAN BANK OF ATLANTA

  37. Purchase/Homebuyer Eligibility FEDERAL HOME LOAN BANK OF ATLANTA

  38. Timeline June 2018 through December 2018 FEDERAL HOME LOAN BANK OF ATLANTA

  39. Structure of Proposal FEDERAL HOME LOAN BANK OF ATLANTA

  40. Contact Us Arthur Fleming SVP, Director of Community Investment Services 404.888.8359 afleming@fhlbatl.com Jan Hadder VP, Associate Director of Community Investment Services 404.888.8355 jhadder@fhlbatl.com Joel Brockmann AVP, Production Manager 404.888.8156 jbrockmann@fhlbatl.com Rob Boyd CIS Strategic Initiatives Lead 404.888.8366 rboyd@fhlbatl.com ShaDonte Butler AVP, Community Investment Business Development Manager 404.888.8416 sbutler@fhlbatl.com Contact Us For More Information 800.536.9650, Option 3, Option 1, Option 3 Visit our website at www.fhlbatl.com

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