Bulletin No.: 2018-01
January 9, 2018
SUBJECT: 2018 Community Investment Offerings
The Federal Home Loan Bank of Dallas (Bank) is pleased to announce the 2018 Community Investment offerings.
Community Investment Program (CIP)
The Community Investment Program (CIP) provides advances to assist members in financing owner-occupied and rental housing by providing a favorably priced, match-funding source. Funds are available year-round and can be used for a variety of purposes including, for example: (1) the purchase or rehabilitation of owner-occupied and rental housing for income-qualified families; (2) the purchase of mortgage-backed securities representing a pool of loans that could be funded directly with CIP advances; and/or (3) investment in low-income housing tax credits.
Economic Development Program (EDP)
The Economic Development Program (EDP) offers advances to assist members with financing economic development or revitalization projects in targeted communities by providing a favorably priced, match-funding source. These projects can provide job creation and job retention for low- and moderate-income wage earners, and can provide services to low- and moderate-income families and communities. EDP advances are often used to finance purchases, as well as to finance renovation, small business, capital improvement and historic preservation projects. The EDP is noncompetitive, and funds are available year-round. All member institutions that are eligible to obtain standard advances from the Bank may apply for EDP advances.
Economic Development Program Plus (EDPPlus)
The Bank has allocated $750,000 to the Economic Development Program Plus (EDPPlus) program for 2018. If a member funds a loan to a qualifying small business using an EDP advance, the business may be eligible for an accompanying EDPPlus grant through the member up to $20,000. (Members are subject to an $80,000 per year cap.) Grant funds are typically used to finance start-up or expansion activities. The Bank began accepting EDPPlus applications on January 2, 2018, and will continue accepting applications on a first-come, first-served basis until all funds are awarded, or December 31, 2018, whichever occurs first.
An EDP advance obtained in conjunction with an EDPPlus grant must have a minimum term of one year. The EDP advance term can be equal to or shorter than the term of the loan made using the advance. In addition, members are required to limit the interest rate mark-up to 400 basis points on loans made to small businesses funded with an EDP advance.
Disaster Relief Program (DRP)
The Disaster Relief Program (DRP) is designed to help finance any project that assists in recovery efforts in federally-declared disaster areas within the Bank's five-state District. Individuals and business owners located within federally declared disaster areas may apply for the funds through the Bank's member financial institutions. For more information, go to fhlb.com/communityadvances.
Affordable Housing Program (AHP)
The Affordable Housing Program (AHP) is the Bank's competitive housing grant program. AHP funds are used to purchase, construct or rehabilitate owner-occupied, supportive housing and rental projects that serve income-qualified households. AHP grants are awarded once a year through the Bank's member institutions. The Bank will accept AHP grant applications from April 2 through May 17, 2018. The level of funds for the 2018 AHP will be announced later in the first quarter. All applications for AHP grants must be submitted through the Bank's online system, which will be available during the application period. Please check fhlb.com/ahp for additional details and program announcements. Detailed information about the AHP is available in the Bank's Implementation Plan, which can be found in the Community Investment section of fhlb.com.
Registration for the 2018 Affordable Housing Workshops will open soon at fhlb.com/events.
Homebuyer Equity Leverage Partnership (HELP)
The Homebuyer Equity Leverage Partnership (HELP) program provides grants that can be used for down payment and/or closing cost assistance for eligible first-time homebuyers. Members interested in participating in HELP must submit a one-time enrollment application and agreement; thereafter, they will be eligible to request HELP funds during each annual offering. Members that have previously enrolled for HELP need not enroll again. For 2018, the Bank has set aside $2 million of its annual AHP funds for HELP grants. The Bank began accepting member requests for HELP funds on January 2, 2018. Members may use up to $25,000 (half of the member cap) to support homebuyers residing out-of-District.
Special Needs Assistance Program (SNAP)
The Special Needs Assistance Program (SNAP) provides grants that can be used for housing rehabilitation to meet the needs of homeowners with special needs. Members interested in participating in SNAP must submit a one-time enrollment application and agreement; thereafter, they will be eligible to request SNAP funds during each offering. Please refer to the Bank's Implementation Plan for more detailed information about SNAP. For 2018 SNAP grants, the Bank set aside $2 million from its AHP funds. SNAP grants will become available on Wednesday, January 10, 2018. Visit fhlb.com for updates.
Disaster Rebuilding Assistance
For 2018, $500,000 has been set aside in Disaster Rebuilding Assistance funds and will be available in March 2018. Details will be announced soon on fhlb.com.
Housing Assistance for Veterans (HAVEN)
Housing Assistance for Veterans (HAVEN) is a unique housing program designed to provide grants to households of veterans or active service members who were disabled as a result of an injury during their active military service since the tragic events of September 11, 2001. The program is designed to support necessary home modifications.
To qualify for HAVEN, the veteran or active service member must have received a certain type of award. In addition to a Purple Heart or higher award, applicants may also qualify for HAVEN if they have received one of the following awards: Afghanistan Campaign, Iraq Campaign, Global War on Terrorism Expeditionary or Global War on Terrorism Service. Applicants must also be qualified as disabled by the U.S. Department of Veterans Affairs, a branch of the U.S. military, the federal government or other acceptable source. Under HAVEN, the Bank grants recipients up to $5,000 toward the modification of a qualifying home. If the Bank's member institution or another lender contributes at least $350 toward financial or other concessions in connection with the home modification, up to $7,500 is available toward the modification. The Bank made available $75,000 in HAVEN funds beginning January 2, 2018.
Partnership Grant Program (PGP)
The Partnership Grant Program (PGP) provides funding for the operational needs of community-based organizations (CBOs), which are comprised of nonprofit organizations involved in affordable housing, local community development funds and small business technical assistance providers within the District. The Bank partners with its members by matching at a 3:1 ratio the contributions made by members to eligible CBOs. The Bank has allocated $300,000 in PGP funds for 2018. PGP applications will be available online beginning May 21, 2018 and will be due on June 21, 2018.
How to Apply
Detailed information on each of these programs, including applications or enrollment forms, guidelines and other information may be found on the Bank's website at fhlb.com/community.
Please check fhlb.com periodically for program announcements. For questions regarding AHP, HELP, SNAP, PGP or HAVEN grants, please contact Community Investment at 800.362.2944. For questions regarding CIP, DRP, EDP and EDPPlus, please contact Member Services at 844.FHL.BANK (844.345.2265).
I hope you will utilize our affordable housing and economic development programs in 2018.
Sanjay K. Bhasin
President and Chief Executive Officer