Community Lending Programs (CLP)
Members can take advantage of our Community Lending Programs to gain access to a reliable source of funding at our lowest advance rates for projects that create housing, improve business districts, and strengthen neighborhoods. Our attractive funding programs include, the Community Investment Program (CIP), Fresh-Start Home Finance Program, the Rural Development Advance (RDA), and the Urban Development Advance (UDA).
Members may submit CIP, RDA, and UDA applications on a project-specific basis or on a program-specific basis, which allows you to fund multiple projects with one application. A total limit of the greater of $100 million or 5% of outstanding advances (as of 12/31/11) per member institution is in effect for 2012 for both program-specific and project-specific applications.
Benefits of CLP
- Flexible funding structures at favorable rates and terms
- Access to low-cost funds at favorable terms for the end loan recipient
- Ability to match terms of the end loan to your customer to help hedge interest rate risk
- Enhance CRA performance
- Simple application process — members can apply for a project- or program-specific commitment
- Responsive commitment process — the member controls the funding
- Upfront transactions — no hidden penalties
- Established program since 1989 with over $2.6B committed and $2.3B funded (as of 5/31/2011)
Eligible Uses for CLP Funds:
Use a CIP Advance or CIP L/C to:
- Finance housing for families or individuals with incomes at 115% or less the area median income
Use a Fresh-Start Home Finance Advance to:
- Provide affordable mortgage refinancing to households with incomes at or below 115% of the area median income who are facing unaffordable or soon-to-be unaffordable mortgage payments
Use a UDA to:
- Finance economic development projects in areas with a population greater than 25,000 that benefit families at or below 100% of the area median income
Use an RDA to:
- Finance economic development projects in areas with a population of 25,000 or less that benefit families at or below 115% of the area median income
Since CLP funds are the lowest-priced HLB advances, the savings could help improve your margins. See if the community development project you have in mind qualifies. Contact a Community Investment Officer at (212) 441-6850 or a Calling Officer at (212) 441-6700.