The Community Lending Program — Your Path to Low-Cost, Long-Term Advances
April 2010 |
The Federal Home Loan Bank of New York’s (“HLB”) Community Lending Program (”CLP”) offers the lowest-priced HLB funding in support of members’ home financing and housing activities, as well as commercial and economic development activities that strengthen neighborhoods.
CLP advances are generally 30 or more basis points lower than both the HLB’s Fixed-Rate and Amortizing Advances, depending on maturity (see rate comparison chart). This price advantage could help members preserve or enhance their net interest margins, become more competitive within their markets, and assist with their asset/liability management by match funding or pool funding assets. Longer-term maturities are also available with CLP advances, allowing members to better match-fund the duration and structure of the end loan, locking in a spread for the life of the loan to help manage interest rate risk.
CLP advances can be fixed, amortizing, or custom-structured at the request of the member. They offer a continuous source of funding in all economic times for projects that benefit low- and moderate-income families or are located in low- and moderate-income neighborhoods.
There are three programs offered under the umbrella of the CLP: the Community Investment Program (“CIP”), the Rural Development Advance (“RDA”), and the Urban Development Advance (“UDA”). View the “CLP Quick Reference Guide” for individual program specifications.
CIP advances may be used for the acquisition, construction, rehabilitation, and financing of housing for families whose incomes do not exceed 115% of the area median income. RDA and UDA advances are specifically designed to finance commercial and economic development needs in members’ communities, including commercial, small business, social service, and public facility projects and activities, as well as the construction or rehabilitation of public or private infrastructure, such as roads, utilities, and sewers. These activities should benefit income-eligible individuals, or be located in low-income neighborhoods with a median income of no more than 115% (RDA) or 100% (UDA). Successful RDA and UDA projects have included grocery stores, daycare centers, healthcare facilities, manufacturing plants, small business loans, and retail outlets.
CLP Letters of Credit are also available at a discounted price, below regular L/C prices, to help provide credit enhancements for a variety of transactions including, but not limited to, the promotion of home financing, housing activities, or financing of commercial and economic development.
CLP advances are a non-competitive, favorably-priced, flexible source of funding that can help increase members’ profitability while enhancing CRA performance and improving community visibility and public relations.
Applications are available here. If you would like assistance with an application, or would like to discuss the CLP advance structures offered for your community lending endeavors, contact your Calling Officer at (212) 441-6700 or the Community Lending department at (212) 441-6850.
$250 Million in CLP Disaster Relief Funding Currently Available
All funding needs in FEMA-designated disaster areas qualify, regardless of income status. And, the minimum CLP term requirement of 1-year has been reduced to 30 days for your short-term funding needs...more
Other Announcements
Letter of Credit Informational Site
A Letter of Credit section is available on the HLB’s website to house all information related to this product, such as a description of the types offered, related forms, and a section for municipalities. Click here to learn all about HLB Letters of Credit and how they may be used to help meet your institution’s funding needs.
FREE Safekeeping on 1Linksm Extended Until June 30, 2010!
Take advantage of this limited-time offer and the new Safekeeping enhancements, such as using one screen to create multiple Safekeeping trades.
View an interactive demo of the Safekeeping enhancements made.
For a more in-depth look at the new Safekeeping process on 1Link, view the following tutorials:
FREE Loan Participation Network
Have you heard about the HLB’s free loan participation network for members? Through the Member Loan Connection (”MLC”) network the HLB provides a communication exchange between our members who are interested in sponsoring or investing in loan participations with other HLB members.
MLC was introduced in April 2008 as an added tool to help members generate asset growth. With over 60 institutions in the MLC network, why wait to start making potentially profitable connections with other HLB members?
Submit loans today! Not Registered? Sign up here.
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