FHLBank Atlanta

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Federal Home Loan Bank of AtlantaVirginia Housing Credit Conference

September 5, 2013 Joel Brockmann

Rental Production Manager Community Investment Services

FHLBank Atlanta

• FHLBank Atlanta Overview

• Community Investment Services (CIS)– Overview– Product and Services– Connecting the Dots: Value and Benefits

• What Can We Do To Assist You?

Our Discussion Today

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FHLBank Atlanta

FHLBanks Perform Critical Function• Cooperative, regional structure of FHLBanks

helps reduce risk; increases responsiveness to shareholders

• FHLBanks meet liquidity and risk management needs of financial institutions of all sizes

• Via our shareholders, provide essential “equity-like” funding for locally based affordable housing and community development

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FHLBank Atlanta

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• 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

FHLBankProducts

CommunityDividendEarnings

10 percent

=

FHLBank Atlanta

Growing communities create 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

FHLBank Atlanta

Shareholder

Community

Shareholder originations create demand

for advances

BenefitViable lending;new customers

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BenefitNew and Rehabbed

Housing,Growing Local

Tax Base;Job Creation

Connecting the Dots

FHLBank Atlanta

EconomicDevelopme

nt Program

AHPCompetitiv

eProgram

AHPSet-asideProgram

Community

Investment

Program

$441 Millioncompetitive funding to create over 73,000 rental and homeownership opportunities for moderate-, low- and very low-income households since 1990.AHP Competitive Leverage Ratio – 1:15

$121 Millionfunded through AHP Set-aside products and supporting more than 18,000 units since 1997.AHP Set-aside Leverage Ratio – 1:18

$6.5 Billionof low-cost CICA advances supporting community economic initiatives and affordable housing development.

Scale and Impact of our Shareholder Leveraging of AHP

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*As of 7/31/13

FHLBank Atlanta

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Products Responsive to Market• Affordable Housing Program (AHP)

– AHP Competitive – rental and ownership• Rental or Ownership• New construction or rehabilitation• Single-family or multi-family• Mixed-use• Acquisition/owner-occupied

– AHP Set-aside – ownership only• First-time Homebuyer Product (FHP) • Community Stability Product (CSP)• Foreclosure Recovery Product (FRP)• Energy Efficiency/Weatherization Rehabilitation Product (EWP)• Accessibility Rehabilitation Product (ARP)• Veterans Products

• Community Investment Program (CIP)/Economic Development Program (EDP)

– Discounted advance products for residential or economic development projects

Commercial Opportunities

Single-Family Mortgage Opportunities

Commercial Opportunities

FHLBank Atlanta

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• Funding to create rental and homeownership opportunities for moderate-, low- and very-low income households

• Maximum $500,000 per project• Competitive Application Process (1 round per year)• Beneficiaries

• Residents at or below 80% of Area Median Income (AMI)• Uses:

• New construction/rehabilitation• Single-family/multi-family• Acquisition/Owner-occupied rehabilitation

AHP Competitive Product - Rental

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FHLBank Atlanta

Multi-family Purchase and RehabilitationWashington, DC, 43 units

Housing for homeless veterans AHP Shareholder VAAcquisition $850,000 $450,000 $400,000Construction $500,000 $50,000 $450,000Soft CostsOther Costs $83,000 $83,000Total Development Budget $1,433,000 $500,000 $533,000 $400,000Total Shareholder Debt – First Mortgage $533,000Shareholder Loan-to-value (LTV)/cost 37.2%AHP Competitive $500,000

Total Shareholder Debt if AHP converted to Debt

$1,033,000

Shareholder LTV/cost if AHP converted to Debt

72.1%

DCR 1.15DCR if AHP converted to debt (7.5% for 15 years) 0.67

9“AHP has the ability to fill funding gaps.” – FHLBank Atlanta Shareholder

AHP Competitive Product – Rental Example

FHLBank Atlanta

Multifamily Rental Multi-family Acquisition/Rehabilitation

Newport News City, VA, 80 units

AHP MemberOther

SourcesAcquisition $1,350,000 $950,000 $400,000Construction $6,579.724 $714,000 $950,000 $4,915,724Soft Costs $1,380,734 $1,380,734Other Costs $1,914,619 $1,914,619Total Development Budget $11,225,07

7$714,000 $1,900,000 $8,611,077

Total Member Debt – First Mortgage $1,900,000Member Loan-to-value (LTV)/cost 16.9%AHP Competitive $714,000

Total Member Debt if AHP converted to Debt $2,614,000Member LTV/cost if AHP converted to Debt 23.3%

DCR 1.36DCR if AHP converted to debt (7.5% for 15 years) .91

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FHLBank Atlanta

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• Ownership transactions• Types

• Ownership new construction • Acquisition / rehab• Owner-occupied rehab• Downpayment assistance

• Use of Funds • Acquisition • Rehabilitation• New Construction and/ or • Permanent funding

AHP Competitive Product - Ownership

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FHLBank AtlantaValue and Impact to You as a Business Developer• Enables extension of credit• Reduces loan risk• Compatible with public or private debt and equity • Equity for difficult to develop/critical deals• Magnet to create new relationships

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FHLBank Atlanta

Stimulates Real Estate ActivityHousing

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*Beyond Units: Economic Benefits of the

Federal Home Loan Bank’s Affordable Housing Program

Additional$8.3 Billion

local economic Impact*

AHP Bank funds circulate through the economy of your local communities multiple times

Tax Revenue$932 Million*

Local Development

$4.8 Billion*

46,000 Jobs*

FHLBank AtlantaValue and Impact to Shareholder Financial Institutions• Business Opportunities • Commercial / construction loans• First mortgage origination

• Reduces loan risk• Public perception• CRA and compliance friendly• Stimulates real estate activity and economic

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FHLBank Atlanta

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• Village Bank, Richmond, VAVirginia Success Stories

Leverages AHP to assist first time homebuyers

FHLBank Atlanta

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Virginia Success StoriesUnion First Market Bank, Ruther Glen, VA

– “The Federal Home Loan Bank has help realized the dream of persons with disabilities gaining access to affordable and accessible housing in King George County.  We could not have done it without you!”

- Fronce Wardlaw, Project FAITH, Inc.

Virginia Heritage, Vienna, VA“We are a big fan of the Federal Home Loan Bank of Atlanta. They werecritical in helping us establish our mortgage operation.  We see the

strategic marketing advantage of using AHP programs.  We just got done with a Fair Lending review with our regulator who was very pleased with Virginia Heritage

Bank’s first time homebuyer activity.”

- Richard Hutchison, Chief Mortgage Officer, Virginia Heritage Bank

FHLBank Atlanta

Just Announced! Virginia Winning Projects in 2013• Virginia Projects were awarded $2,886,789 in affordable housing

funding for the 2013 round– 447 rental units funded– Leveraging $55,331,371 in total development - 19:1 leveraging

• Armstrong Place, Lynchburg, VA– Member: Community Capital Bank of Virginia– Sponsor: Rush Lifetime Homes– AHP Amount: $195,477 for 27 rental units– Total Development Cost: $6,232,771– (28) 1- and 2-bedroom affordable units for special needs residents

• Pine Ridge Apartments, Louisa VA– Member: EagleBank– Sponsor: REBJ, Inc. with Telamon Corporation– AHP Amount: $265,000 for 27 rental units– Total Development Cost: $2,680,171– Preservation and rehab of two-story garden style buildings

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FHLBank Atlanta

Just Announced! Virginia Winning Projects in 2013• Lovingston Ridge, Lovinston, VA

– Member: Branch Banking and Trust Company– Sponsor: Southeastern Housing Preservation, Inc.– AHP Amount: $250,000 for 64 rental units– Total Development Cost: $5,491,191– Acquisition and rehabilitation of 64 units for low- and very-low

income residents• Crescent Square, Virginia Beach, VA

– Member: Branch Banking and Trust Company– Sponsor: Virginia Supportive Housing– AHP Amount: $500,000 for 80 rental units– Total Development Cost: $10,216,352– Mixed-income community with support services for homeless

and low-income residents

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FHLBank Atlanta

Just Announced! Virginia Winning Projects in 2013• New River Gardens II, Radford, VA

– Member: Branch Banking and Trust Company– Sponsor: Southeastern Housing Preservation, Inc.– AHP Amount: $346,312 for 44 rental units– Total Development Cost: $3,912,392– Acquisition and rehabilitation for units targeted to very-low

income families• Edenbrook Park, Crozet, VA

– Member: Bank of America, National Association– Sponsor: Humanities Foundation, Inc.– AHP Amount: $500,000 for 84 units– Total Development Cost: $11,765,882– 84 homes targeted to low- and moderate-income families

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FHLBank Atlanta

Just Announced! Virginia Winning Projects in 2013• Puddledock Place, Prince George, VA

– Member: Bank of America, National Association– Sponsor: Humanities Foundation, Inc.– AHP Amount: $500,000 for 84 units– Total Development Cost: $11,600,873– Acquisition of 84 homes in five buildings with a new

community building• Hillside Apartments, Pearisburg, VA

– Member: Community Capital Bank of Virginia– Sponsor: Pax-Edwards, LLC with Green Trust Alliance– AHP Amount: $330,000 for 36 rental units– Total Development Cost: $3,431,739– Acquisition and rehabilitation of 37 1-, 2-, and 3-bedroom units

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FHLBank Atlanta

What’s Next for AHP Competitive• New Veterans Housing category • 5 points for projects that reserve 10% of the

units for Veterans• 2014 AHP Competitive Round Schedule• Round Opens January 14• Applications Due February 13• Award Announcements by early June

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FHLBank AtlantaWhat’s Next for AHP Competitive (cont.)• 3-Year Schedule

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Open 1/14/15

Close 2/13/14

Winners Notified

Juneq q qJan Feb Mar Apr May June July Aug Sep Oct Nov Dec

Open June

Close July

Winners Notified

Octq q q

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

Open March

Close April

Winners Notified

Julyq q q

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

2014

2015

2016

FHLBank Atlanta

Affordable HousingChristopher Place Academy Baltimore, MDAHP Investment$500,000Total Development Cost $4,303,020

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FHLBank AtlantaThe Community Dividend at Work

Affordable HousingBoaz and Ruth Homes IRichmond, VAAHP Investment $190,000Total Development Cost $1,420,000

Foreclosure RecoveryKhella FamilyMidlothian, VA AHP Investment $12,000

Sales Price$170,000

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Affordable HousingWoods at YorktownYorktown, VAAHP Investment $354,000Total Development Cost $7,203,459

Energy WeatherizationLamas FamilyMc Gaheysville, VA AHP Investment $11,331

Hard Cost $9,443Soft Cost $1,888

Affordable HousingCrispus Attucks Apartments

Exmore, VA

AHP Investment $110,000

Total Development Cost $3,998,016