Federal Home Loan Bank of Indianapolis

1. Federal Home Loan Bank of Indianapolis Funding Opportunities

2. FHLBI grant programs at work • Rental housing development • Homeownership rehabilitation grants • Downpayment assistance grants

3. FHLBI Programs • Affordable Housing Program • Homeownership Initiatives • HOP • NIP • Community Investment Program

4. Support Living

5. Senior Housing

6. Downpayment assistance for first-time homebuyers

7. Temporary shelter for victimized children

8. New medical Facility Saginaw

9. 220 Indiana members

10. Important partner Sponsors Project Local financial institution Flow of information and funds Develops Project Local government or nonprofit Makes Award FHLBI

11. FHLBI’s Contribution • Homeownership • Downpayment/closing cost assistance • Rehab dollars • Rental • Development/construction/rehab assistance

12. Contribution Allocation (10% of net income)

13. Affordable Housing Program (AHP) • Direct subsidy for acquisition, construction or rehab of affordable housing • Eligible Uses • Land acquisition • Construction subsidy for single family homes • Rehabilitation costs on multifamily or single-family rental units • Downpayment and closing cost assistance to low-mod buyers • Soft costs - developer fees, construction interest, environmental assessments, other pre-development costs

14. Affordable Housing Program (AHP) • Maximum grant $500,000 per project • Competitive application process • Two funding rounds per year • Spring round announcements in June • Fall round to open during August 2005

15. Retention and monitoring • Retention commitments • 5 years homeownership • 15 years rental • Monitoring requirements • Semi-annual reporting • Long term reporting for rental projects

16. Allocation Process • Applications are scored • Read 2005 Implementation Plan • Changes to be published in June • Complete detailed application with member financial institution • Applications must demonstrate “readiness”

17. Equity $ 50,000 Bank Loan 970,500 Development Budget without Soft Dollars For 11 apartment units Uses Sources Land $ 37,500 Pre-Development 36,000 Construction 775,000 Developer Fee 100,000 Loan and other fees 72,000 Total $ 1,020,500 Total $ 1,020,500 Loan payments: $970,500 @ 7.5% for 15 yrs = $9,000 per month or $108,000 per year

18. Rents withOUT soft dollars 1 bedroom $650 2 bedroom $735 3 bedroom $755 4 bedroom $1,000

19. Development Budget with Soft Dollars For 11 apartment units Sources Uses Equity $ 50,000 AHP 300,000 HOME 420,000 Bank Loan 250,500 Total $ 1,020,500 Land $ 37,500 Pre-Development 36,000 Construction 775,000 Developer Fee 100,000 Loan and other fees 72,000 Total $ 1,020,500 Loan payments: $250,500 @ 7.5% for 15 yrs = $2,300 per month or $28,000 per year

20. Rents with soft dollars 1 bedroom $229 2 bedroom $435 3 bedroom $600 4 bedroom $850

21. Contribution Allocation (35% of AHP)

22. Homeownership Opportunities Program (HOP) • $5,000 maximum grant • Downpayment/closing cost assistance • 3 to 1 match • $500 cash contribution from homeowner • Other grants/funds can be matched including member home equity loans

23. HOP • Express • $1.0 million available in 2005 • First-come, first-served basis • $700,000 released in spring (exhausted) • $300,000 released in fall • Reserve • Approximately $1.6 million awarded on March 1 • Member has 1 year to exhaust award

24. Single Parent – 2 Children Single Parent with 2 Children Family of 4 with Stay-home Mom $3,250 from paralegal job and child support ▪ $1,300/month for housing Needs 3-bedroom house; only has $2,500 to put towards house

25. Mortgage Monthly $ Monthly payment $ 780 Taxes & insurance 130 Total payment $910 Sale Price $130,000 Downpayment (6,500) Total Mortgage $123,500 Downpayment $6,500 Closing costs 3,000 Total up-front costs $9,500 Short $7,000 Affordable! Single Family Purchase - Without Subsidies $1,300/month

26. Total up-front costs $2,500 Enough Up-Front $$ Single-Family Purchase - With Subsidies Closing funds Downpayment 6,500 Closing costs 3,000 Total 9,500 Homebuyer funds (2,500) FHLBI grant (5,000) HOME grant (2,500) Total 10,000

27. Neighborhood Impact Program (NIP) • Owner-occupied rehabilitation assistance for existing homeowners • 3 to1 match • Other grants/funds can be matched • Cash contribution not required

28. Experienced nonprofit FHLBI Member • Qualifies household • Counseling • Oversees rehab work • Makes payments • Provides grant to homeowner through nonprofit FHLBI • Provides fund from net income NIP best practice

29. NIP • Express • $500,000 total available • For emergency-type repairs • First-come, first-served basis • $300,000 released in spring (exhausted) • $200,000 released in fall • Reserve • $1.3 million awarded on March 1 (includes carryovers) • $15,000 max. per home • Home must be in targeted area • Member has 1 year to exhaust award

30. Common Uses of NIP • Small scale projects • New roof or repairs • Modifications for disabled individuals • Ramps • Grab bars • Furnaces • Siding, gutters, soffit and facia • Windows

31. What is Community Economic Development? The process by which local people build organizations and partnerships that interconnect profitable business with other interests and values - for example, skills and education, health, housing and the environment.

32. Government or nonprofit initiatives Business development and expansion Retail/commercial development Housing development

33. Community Investment Program (CIP) • Below market rate loans for community economic development in low-income areas • Longer terms available than with traditional financing • Member mitigates interest rate risk on long term deals

34. FHLBI Advance Rates Advance Information as of 4/18/05

35. Borrows from FHLBI Adds Spread Loans to Project Determined by member based on credit quality Project benefits from attractive financing package Long term – up to 20 years/30 year amortization Low rate How it Works Local financial institution

36. CIP Examples • Commercial real estate financing • Multifamily housing 1st mortgage financing • Small business • Real estate purchase • Equipment • Public facilities • Medical facilities • New construction or expansion

37. The Community Benefits + Housing Jobs = Sustainable neighborhoods and communities