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Lenders Summit

FHLBank TopekaSpecial Programs for Housing, Commercial Loans and CommunityDevelopment

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FHLBank Topeka

• Government-sponsored enterprise (GSE) established in 1932

• Created 12 district FHLBanks

• Tenth District includes Colorado, Kansas, Nebraska and Oklahoma

• Currently serve more than 838 banks, thrifts and credit unions

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FHBLTopekaMission Statement

We make a difference by helping our members build their communities.”

We assist them in addressing a broad range of economic development and housing needs in their communities through:

-FHLBank Topeka’s primary product lines; and-Special housing and community development programs

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FHLBank Topeka Role

• To work with our owner/members to address this broad view of economic development needs in their communities through– FHLBank Topeka’s primary product lines, and

– Special programs

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Community and Economic Development

• Grants – JOBS

• Advance Funding for stockholders– CDP– HELP

• Technical assistance

Community Development Loans -- Non-housing commercial, economic development, farm, agribusiness, public facility, social services, medical and other loans/leases

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Joint Opportunities for Building Success (JOBS)An Economic Development initiative that assist members in promoting employment growth in their communities.

Community Development Program (CDP) – Commercial and community development

Community Housing Program (CHP) Single And multifamily housing

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JOBS

• $1,500,000 for 2011 • Recoverable grant, grant, interest rate buy-down, principal

reduction, equity• Emphasis on:

– Job impact– Community support– Project viability and readiness to proceed– Leveraging

• $25,000 max per member• $25,000 max per project• Deadline was - April 1 – 51 out of 95 projects awarded – 2

from Colorado, 22 from Kansas, 13 from Nebraska and 14 from Oklahoma

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CHPCommunity Housing Program Advance

• Owner-occupied Housing Families < 115% of medianSF Home Loan Pools based on eligible loans from HMDA LAR -

• Rental HousingMinimum 51% of units with tenants earning < 115% of median or minimum 51% affordable units

• CHP advances priced below FHLBank’s market rates• No limit on total annual approvals• No limit on markup• No maximum per member per year• 4 month to 30 year terms• No restriction on approvals per year per member

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CHP Plus Advance- Rental Housing

• Rental housing occupied by, or affordable to, 80% AMI or less

• CHP Plus advances priced below FHLBank’s cost of funds

• $25 million pool annually• Minimum amount of a CHP Plus advance is $10,000• 200 bp maximum markup• $1 million max• 20-year term max for CHP Plus pricing• Two CHP Plus approvals per year per member• Members may obtain CHP Plus advances for additional projects after June 15 if CHP Plus funds remain available.

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CHP Owner 115% Area Median

Colorado $93,840 - 126,155

Kansas $83,450 - 93,236

Nebraska $81,995 - 92,443

Oklahoma $71,547 - 78,557

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Denver – Aurora MSA Adams, Arapahoe, Broomfield, Clear Creek, Denver, Douglas,

Elbert, Gilpin, Jefferson, ParkCHP Plus and CHP Rental Income Limits

• CHP “Plus” 80% AMI

• CHP “Plus” Affordable Rent

• CHP 115% AMI

• CHP Affordable Rent

$60,700

$1,518

$87,256

$2,181

CDP Advance

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Community lending financing for:•Commercial loans•Loans to municipalities•Utility financing•Educational•Medical•Agricultural•Other non-housing. E.g. churches, day care

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CDP

• Commercial Loans, Loans to Municipalities, Utility Financing, Educational Loans, Medical Facility and Clinic Loans, Agricultural Loans and Other Non-housing Projects (churches, day care )

• CDP advances priced below FHLBank’s market rates• No limit on total annual approvals• No limit on markup• No maximum per member per year• 4 month to 30 year terms• No restriction on approvals per year per member

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Qualifying for CDP

• Four ways to qualify: - Must meet only one

– Meets SBA definition of small business concern

– Located in an income-targeted geographic area

– Located in a designated targeted program area, or

– Targeted employee wage levels

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CDP Small Business Qualifying Factors

• 500 employees for most manufacturing and mining industries

• $7 million in annual receipts for retail and service industries

• 100 employees for most wholesale operations• $750,000 in annual receipts for farm operations• $7 million Health Services/Clinic/ Doctors Offices • $7 million Education or Social Services

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CDP Qualified Geographic Area

• Rural Areas 115% of AMI • Urban Areas 100% of AMIRural- A unit of local government with a population of 25,00 or less.An unincorporated area outside the MSAAn unincorporated area within an MSA that qualifies for assistance

from USDAhttp://www.ffiec.gov/geocode/default.htm

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CDP Targeted Wage Levels

• At least 51% of the employees must have incomes at or below the targeted income levels

Rural areas use 115% of published MRB limits

Denver MSA 100% MRB Income limit = $87,400

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CHP/CDP Process

• CHP/CDP application– Open, non-competitive window

• HCD approval– Approval within one week, usually less

– Approval good for one year

– Approval letter to stockholder and lending department

• Lending Department– Regular advance process, except for price

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Technical Assistance

• Community capacity building• Housing resources• Economic development resources• Rural homeownership counseling

Resources

Tom Thull Vice President, HCD Director 785.438.6029

Michael Borcher HCD Financial Manager NewJeff Ragsdale HCD Financial Specialist II 785.438.6034Noelle St. Clair Community Programs Specialist 785.438.6033

Michele Carter HCD Program Manager 785.438.6032Utika Scales HCD Specialist I 785.438.6035Terri Smith HCD Specialist I 785.438.6289Amy Apitz HCD Specialist I 785.438.6031Dawn Harris HCD Specialist I 785.438.6030

Mark Ward HCD Quality Control Manager 785.438.6037

Housing and Community Development StaffToll Free # 866.571.8155

http://www.fhlbtopeka.com/s/index.cfm?SSID=41