1 FHLBank Atlanta Community Investment Services Product Overview Fuller Center for Housing Covenant Partner Conference January 25, 2013 1

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FHLBank Atlanta Community Investment Services Product

Overview

Fuller Center for Housing Covenant Partner Conference

January 25, 20131

Title of Presentation

• Like every “dividend,” predicated upon earnings

• “Equity-like” capital for real estate transactions

• Direct & indirect benefits to shareholders, developers, homebuyers, tenants, and the community

Unique offering to Shareholder and Community

FHLBankProducts

CommunityDividend

10 percent

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=

Connecting the Dots

Growing communitiescreate demand for additional financing

FHLBank Atlanta provides “equity-like” funding enabling shareholders to make

transactions viable and attract new customers

Funds are invested in community-based transactions generating successful lending opportunities

Shareholder originations create demand

for advances

Indirect BenefitNew and rehabbed

housing,growing local

tax base;job creation

Direct BenefitViable lending,new customers;

reduced loan risk

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Connecting the Dots


Benefits for Covenant Partners

• Generate fee income from performing rehabilitation work

• Reach new customer markets and grow your business• Lower energy costs and improve the safety and

accessibility of your customers' homes• Access to products that can be used with other

funding sources• Single source offering purchase or rehabilitation

funding• Streamlined application process • Minimal reporting requirements4


AHP Set-aside Products

Foreclosure Recovery Product (FRP)

Community Stability Product (CSP)

Veterans Purchase Product(VPP)

First-time Homebuyer

Product (FHP)

Returning Veterans Purchase Product (RVPP)

Energy Efficiency/ Weatherization Rehabilitation Product (EWP)

Accessibility Rehabilitation Product (ARP)

Veterans Rehabiliation Product (VRP)

Returning Veterans

Rehabiliation Product (RVRP)


Purchase Products

First-time Homebuyer (FHP)

Community Stability (CSP)

Foreclosure Recovery (FRP)

Eligible Use of Funds Down-payment and closing cost assistance for first-time homebuyers

Down-payment and closing cost assistance for homebuyers purchasing in areas targeted for stabilization by federal, state, or local government

Down-payment and closing cost assistance for homebuyers purchasing properties from an FHLBank Atlanta member’s REO portfolio

Maximum Subsidy Per Unit

$5,000 $5,000 $15,000

Matching Subsidy Ratio 4 to 1 4 to 1 4 to 1

Borrower Minimum Contribution

$1,000 $1,000 $1,000

Retention Period 5 years 5 years 5 years

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Rehabilitation ProductsEnergy Efficiency/ Weatherization (EWP)

Accessibility Rehabilitation (ARP)

Eligible Use of Funds Energy efficiency and weatherization rehabilitation of an existing owner-occupied unit

Safety and accessibility rehabilitation of an existing owner-occupied unit

Maximum Subsidy Per Unit $12,000 $12,000

Qualified Improvements •Exterior Doors•HVAC Systems•Insulation•Water Heaters•Roof •Windows•Low-flow plumbing fixtures•Floors•Walls

•Exterior ramp, sidewalk, or driveway•Handicapped bathrooms, including sink toilet, shower, grab bars, and vanities•Kitchen cabinets and sinks•Carpentry to widen doorways•Replacement of floor coverings

Eligible Borrowers Owner must have at least one year current ownership by life estate or full interest in the fee title

Owner must have at least one year current ownership by life estate or full interest in the fee title

Retention Period 5 years 5 years

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Veterans ProductsVeterans Purchase(VPP)

Returning Veterans Purchase (RVPP)

Veterans Rehabilitation (VRP)

Returning Veterans Rehabilitation (RVRP)

Eligible Use of Funds

Down payment, closing costs, orrehabilitation assistance andcounseling for the purchase orpurchase/rehabilitation of an existingunit

Rehabilitation of an existing owner-occupied unitQualified improvements include: Exterior doors, heating, ventilation and air conditioning systems, insulation, roof,windows, low-flow plumbing fixtures, exterior ramp, sidewalk, or driveway, handicapped bathrooms, including sink, toilet, shower, grab bars, and vanities, kitchen cabinets and sink, carpentry to widen doors, replacement of door coverings

Eligible Borrowers Homebuyers that are currently serving or have served in any branch of theU.S. military, or their surviving spouses

Homebuyers that are currently servingor have served in an overseas militaryintervention for any branch of the U.S.military, or their surviving spouses

Homeowners that are currently servingor have served in any branch of theU.S. military, or their surviving spouses

Homebuyers that are currently serving or have served in an overseas military intervention for any branch of the U.S. military, or their surviving spouses

Maximum Subsidy Per Unit

$7,500 $10,000 $12,500 $15,000

Borrower Minimum Contribution/ Matching Subsidy

No borrower contribution or matching subsidy required

Retention Period 5 years 5 years 5 years 5 years

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Funding Parameters for Rehab Products

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How can Covenant Partners Access Products?• Covenant Partner works with low and moderate income

families as well as the elderly homeowners to achieve the organization’s goal of energy efficient affordable housing

• The partner has identified 15 low and moderate income homeowners in need of energy efficiency/ accessibility repairs

• Total cost will be $12,000 per home (rehab plus soft costs)

• Inspection costs before and after completion of repairs will be $250 per home

How much will the Covenant Partner earn if they coordinate the repairs for all 15 homes?

Note: All participating homeowners must complete financial literacy counseling with CredAbility for a fee of $150

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Rehab Product ExampleApproved Rehab costs $ 10,000Soft Costs – 20% $ 2,000

Total Rehab Cost for Each Home $12,000

Fee Income CalculationMaximum Soft Costs $ 2,000CredAbility Counseling Fee ($150)Inspection fees paid ($250)

Per Unit Fee Income Earned $1,600

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Easily Accessible Funding!

Member financial institutions

submit applications to

FHLBank Atlanta

Upon approval the

Bank will credit funds to the

member financial

institution’s demand deposit

account

Member financial institutions will

disburse funds to intermediaries or contractors after

work is completed for rehab products

Homebuyers and homeowners will

work with Covenant Partners to apply

for funds through a member financial

institution

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Ready to Get Started?

Resources available for identifying FHLBank Atlanta members:

List of Participating Membershttp://www.fhlbatl.com/docs/cis/fhp-participating-members.pdf

FHLBank Atlanta Member Directoryhttp://corp.fhlbatl.com/financialservices.aspx?id=941

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First Tuskegee Bank and the City of Montgomery, AL

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http://youtu.be/1ilfWg1vo8I


Contact Us for More InformationBusiness and Relationship DevelopmentShaDonte Dozier CIS Business and Relationship Development Manager [email protected]

Visit our website at http://www.fhlbatl.com/ahp/Set-aside/

AHP Ownership Products

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Overview

FHLBank Atlanta Questions?

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Documents

1 FHLBank Atlanta Community Investment Services Product Overview Fuller Center for Housing Covenant Partner Conference January 25, 2013 1