Overview

The CIP provides favorably priced advances to assist members in funding affordable housing in their communities.

Funds are available throughout the year to support lending for housing-related programs targeted to households earning up to 115 percent of the area median income (AMI).

All member institutions eligible to obtain advances from the Bank can make a CIP advance request.

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Uses of Funds

CIP advances (loans) can be used to: 

• purchase, refinance, construct or rehabilitate individual owner-occupied housing properties that benefit families with incomes at or below 115 percent of the AMI.
• purchase, refinance, construct or rehabilitate projects involving multiple units of owner-occupied housing in which at least 51 percent of all families have incomes at or below 115 percent of the AMI.
• purchase, refinance, construct or rehabilitate rental properties where at least 51 percent of all tenants have incomes at or below 115 percent of the AMI. For refinancing, any equity proceeds of the refinancing must be used to rehabilitate the rental properties or to preserve affordability for current residents.
• purchase state housing finance agency bonds or mortgage-backed securities, representing pools of loans that could be funded directly with CIP advances.
• fund low-income housing tax credits or investments in lender consortia, provided the underlying mortgages could be funded directly with CIP advances.
• make loans to entities that in turn lend funding for eligible housing projects.

  CIP advances can also be used in conjunction with AHP, HUD, FHA, state and local governments, and secondary market agency programs.

  Members may also receive CIP pricing for standby letters of credit and confirmations that will be used to fund affordable housing for eligible households.

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Program Requirements

• The applicant must be a member of the Bank.
• Community development advances (which include CIP, AHP, EDP, 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 capital stock and collateral requirements.
• Members must use their own underwriting criteria
• Members must agree and limit their rate mark-up to 300 basis points on owner-occupied development and 400 basis points on rental housing development.
• The CIP advance must be for financing for mortgage loans that have closed in the past 90 days or that will be originated in the next 180 days from the date of the commitment.

Application

The CIP 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. Please see the application for the complete application process and reporting requirements.

Complete applications and supporting documentation should be mailed to:

Member Sales Group
Federal Home Loan Bank of Dallas
P.O. Box 619026
Dallas, Texas 75261-9026

Applications may be faxed to: 214.441.8551.

For more information on participating in the CIP, please contact the Member Sales Group at 800.442.9841.

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