Federal Home Loan Bank's
Community Investment Program (CIP) |
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| TARGET USERS: |
Community organization providing housing; Cities; County |
| WHAT IS THE FEDERAL HOME LOAN BANK & CIP PROGRAM: |
The FHLB is a government-sponsored
correspondent bank that can be used as an alternative source of funds for
member institutions. The FHLB’s
Community Investment Program has a component which allows member banks to obtain
fixed rate funds at a cost which may be below the institution’s normal cost,
thus allowing the institution to lend these funds at a lower rate. |
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The CIP is designed to finance the acquisition,
construction or rehabilitation of owner-occupied and rental housing for
families with incomes that do not exceed 115% of the HUD adjusted area median
income in any census tract. In
low-income census tracts (i.e. census tracts at or below 80% of area median
income) housing for families with incomes up to 115% of area median income
may be financed. |
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The CIP also provides financing for community
economic development, commercial/industrial, and small business
activities. In addition, the activity
must be located in one of the following specifically defined areas: |
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The project is located in a Champion Community, or an
Empowerment Zone or Enterprise Community, as designated by USDA or HUD; |
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The project is located in an Indian area, as defined by the
Native American Housing Assistance and Self-Determination Act of 1996,
Alaskan Native Village, or Native Hawaiian Home Land. |
| ADVANTAGES: |
1) |
The lender may provide funds at a below market
rate. |
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The lender may provide these funds on a long term, fixed rate
basis. |
| DISADVANTAGES: |
Due to higher administrative costs, the lender
may limit these types of loans to higher dollar amounts. Loan may have pre-payment penalty. |
| HOW TO
APPLY: |
Through a local financial institution that is a
member of the Federal Home Loan Bank (FHLB). |
| CONTACT: |
Information and technical assistance, please contact: |
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Lisa Robinson, FHL Bank Atlanta |
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(800)
536-9650 ext. 8576 |
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www.FHLBatl.com |
| Source: Federal Home Loan Bank, 2003 |
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