1 Lenders Summit FHLBank Topeka Special Programs for Housing, Commercial Loans and Community Development

2 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

3 FHBLTopeka Mission 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

4 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

5 Special Programs Overview CHP and CHP Plus) Community and Economic Development (JOBS, CDP, HELP)

Programs Mandatory Programs –Affordable Housing Program (AHP) –HCD Advance Programs (CIP dba CHP/CDP) Discretionary Programs –Community Housing Program Plus (CHP Plus) –Community Development Program (CDP) –HCD Emergency Loan Program (HELP) –Joint Opportunities for Building Success (JOB

7 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

8 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

9 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

10 CHP Community Housing Program Advance Owner-occupied Housing Families < 115% of median SF Home Loan Pools based on eligible loans from HMDA LAR - Rental Housing Minimum 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

11 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, 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.

12 CHP Owner 115% Area Median

13 Denver – Aurora MSA Adams, Arapahoe, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, Park CHP 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 14 Community lending financing for: Commercial loans Loans to municipalities Utility financing Educational Medical Agricultural Other non-housing. E.g. churches, day care

15 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

16 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

17 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

18 CDP Qualified Geographic Area Rural Areas 115% of AMI Urban Areas 100% of AMI Rural- A unit of local government with a population of 25,00 or less. An unincorporated area outside the MSA An unincorporated area within an MSA that qualifies for assistance from USDA

19 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

20 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

21 Technical Assistance Community capacity building Housing resources Economic development resources Rural homeownership counseling

Resources Tom ThullVice President, HCD Director Michael Borcher HCD Financial ManagerNew Jeff RagsdaleHCD Financial Specialist II Noelle St. ClairCommunity Programs Specialist Michele CarterHCD Program Manager Utika ScalesHCD Specialist I Terri SmithHCD Specialist I Amy ApitzHCD Specialist I Dawn HarrisHCD Specialist I Mark WardHCD Quality Control Manager Housing and Community Development Staff Toll Free #