Community Investment Program (CIP)
The Community Investment Program (CIP) provides financing for targeted housing and economic development activities. The CIP provides a continuous source of low-priced, long-, medium-, and short-term funds available as advances or loans to members of the FHLBank. The CIP is priced below the FHLBank's regular advance rates. Long-term funding is available with a CIP advance, allowing you to match fund the terms and structure of the end loan, locking in a known spread for the life of the loan to hedge interest-rate risk. These special advances may be used to finance both housing and economic development projects that meet the following criteria:
Housing
CIP funds may be used to finance the purchase, construction, rehabilitation, refinancing, and/or pre-development of housing for:
- Individual owner-occupied housing units, each of which is purchased or owned by a family with an income at or below 115% of the area median;
- Projects involving multiple units of owner-occupied housing in which at least 51 % of the units are owned or intended to be purchased by families with incomes at or below 115% of the area median;
- Rental housing where at least 51% of the units in the project are occupied by, or the rent is affordable to, families with incomes at or below 115% of the area median;
- Manufactured housing parks where at least 51 % of the units are occupied by, or the rents are affordable to, families with incomes at or below 115% of the area median or located in a neighborhood with a median income at or below 115% of the area median.
Fresh Start Home Finance fund may be used to provide affordable mortgage refinancing to households with incomes at or below 115% of area median income who are facing unaffordable or soon-to-be unaffordable mortgage payments…more
Economic Development Activities
CIP funds may also be used to finance economic development activities as follows:
- Projects located in a neighborhood with a median income at or below 80% of the median income;
- Projects located in a Champion Community, or an Empowerment Zone, or an Enterprise Community;
- Projects located in an Indian area, as defined by the Native American Housing Assistance and Self- Determination Act of 1996;
- The annual salaries for at least 51 % of the permanent full- and part-time jobs, computed on a full-time equivalent basis, created or retained by the project, other than construction jobs, are at or below 80% of the median income;
- At least 51 % of families who otherwise benefit from (other than through employment), or are provided services by, the project have incomes at or below 80% of the median income.
CIP is a flexible program that members use to finance a wide range of targeted housing and economic development projects, including:
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