Overview

Uses of Funds

Program Requirements

Application

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Overview

• The EDP provides favorably priced advances to assist members in funding economic development projects and community revitalization in targeted communities. 
• EDP funds are available throughout the year to support lending for economic development-related programs, qualified by location, income, or services to activities rendered.
• All member institutions eligible to obtain advances through the Bank may make EDP advances.

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Uses of Funds

· EDP advances (loans) can be used for:

Construction	Small business funding
Nursing homes	Civic Centers
Historic preservation	Hospitals
Capital improvement	Public works projects
Industrial facilities	Social services facilities
Construction line of credit	Letter of credit
Water/Wasterwater infrastructure financing

EDP advances can be used to purchase participations or provide financing to participate in a loan consortium for EDP-eligible economic development projects; or

To make loans to third-party entities that in turn lend for EDP-eligible economic development projects; or

To purchase mortgage revenue bonds or mortgage-backed securities (MBS), when all of the loans financed by the bond and all of the loans backing the securities meet EDP requirements.

EDP advances can be used to fund qualified projects that have closed in the past 90 days, or will close in the next six months.

Funds can be used to purchase state finance agency bonds that meet EDP requirements.

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Program Requirements

Qualifying projects must meet at least one of the following criteria: 

Project is located in a neighborhood in which the majority of households have incomes at or below the qualifying percent of the area median income (AMI):

• Project is located in a rural area (population < 25,000) in which the average family income is at or below 115 of AMI.
• Project is located in an urban area (population > 25,000) in which the average family income is at or below 100 percent of the AMI.

Services will be provided from the finished project that will benefit at least 51% of households with incomes at or below the qualifying percent of the AMI.

Project will create and/or retain jobs for low- to moderate-income individuals

Projects may automatically qualify if they are located in one of the following target areas:

Federal Champion Community	Federal Enterprise Community
Federal Empowerment Zone	Community impacted by NAFTA
Brownfield Tax Credit	Declared Federal or State Disaster Area
Native American Indian area	Area impacted by a military base closing
Area currently supported by Community Adjustment & Investment Program (CAIP)

Community development advances (which include EDP, CIP, AHP, and Disaster Relief Program advances) may not exceed, at the time the advance is approved, the lesser of 15 percent of an institution's total assets, or $200 million.

Members must meet the Bank's standard collateral requirements and must limit their rate mark-up to 400 basis points.

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Application

Members must agree to comply with the Community Investment policies and procedures established by the Bank.

A transaction verification form is required from the member institution within 30 days of funding.

The EDP application may be downloaded. The EDP application is presented in the Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat you may download the "free" Adobe Acrobat reader.

Complete applications and supporting documentation should be mailed or faxed (214.441.8577) to the following:

                  Community Investment Department 
                    Federal Home Loan Bank of Dallas
P.O. Box 619026
Dallas, TX 75261-9026

For more information or questions regarding qualification, please contact the Community Investment Department at 800.362.2944 or your Lending Officer at 800.442.9841, or e-mail the Community Investment Department at cip@fhlb.com.

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