Disaster Relief Funding

Disaster Relief Funding (DRF)

Flexibility and speed are crucial in the initial stages of a response to a crisis. Members are immediately eligible for discounted advance rates through our Community Lending Programs (CLP) if they are providing financing in FEMA-designated areas.

In an effort to support the communities we serve, the Federal Home Loan Bank of New York (FHLBNY) has extended $1 billion in Disaster Relief Funding (DRF) to cover communities affected by the current COVID-19 pandemic, recent earthquakes in Puerto Rico, and past Hurricanes Irma and Maria in the Caribbean. Natural disasters have destroyed physical infrastructure while COVID-19 has led to widespread business closures, mass layoffs and record unemployment levels. In all these cases, the FHLBNY is here to support our members and aid in relief efforts.

Funds are available to members to assist rebuilding and economic recovery efforts across in-district communities located in FEMA designated disaster areas. The funds are being made available by the FHLBNY through its CLP for both immediate gap financing and long-term funding to rebuild communities and support small businesses affected by the disasters.

Disaster Relief Funding will continue to be made available until it has been fully allocated or until December 31, 2020, whichever occurs earlier. In the event the DRF has not been fully allocated by this date, the FHLBNY may choose to make the DRF available past 2020.

Eligibility Criteria

1

Eligible member lending activity originated after the disaster declaration and within 90 days of receiving funding may be submitted as DRF support for advances related to financing of housing or economic development activities in communities located in a FEMA-designated disaster area.

 

Housing activities include the purchase, construction, rehabilitation or refinancing of, or predevelopment financing for individual owner-occupied housing units, projects involving multiple units of owner-occupied housing, rental housing, or manufactured housing parks, as defined in the CICA Regulation.

 

Economic development activities include commercial, industrial, manufacturing, social service, public or private facility and infrastructure activities, such as roads, utilities, and sewers.

 

Economic recovery efforts include immediate and long-term small business relief measures. DRF will support members in liquidity needs, shoring up balance sheets, and allowing them to offer continuous credit facilities.

2

Commercial and/or Mixed-Use eligibility is based on location criteria (FEMA-designated disaster areas). Eligibility for housing activities is based on existing CIP eligibility criteria.

3

DRF advances are initially limited to $25 million per member per month with an overall program limit of $50 million per member.

4

The minimum advance term is 30 days.

5

All FHLBNY credit conditions apply.

Apply for Disaster Relief Funding

Members must submit a fully completed DRF Application to apply (download application below). Within the application, please be sure to provide requested detail for each submitted loan along with a brief description of how the funds will be used.

DRF/APP-001 Disaster Relief Funding Application (DRF/APP-001)
DRF Guidelines Disaster Relief Funding Guidelines

The FHLBNY continues to help communities through the Community Investment Program (CIP) which enables members to finance a wide range of targeted housing projects. Rural Development Advance (RDA) and Urban Development Advance (UDA) were also created to provide financing for economic development projects in rural or urban areas.

General FAQs

  1. How much in funding is available through FHLBNY’s Disaster Relief Funding?

In an effort to support the communities we serve, the Federal Home Loan Bank of New York (FHLBNY) has extended $1 billion in Disaster Relief Funding (DRF) to cover communities affected by the current COVID-19 pandemic, recent earthquakes in Puerto Rico, and past Hurricanes Irma and Maria in the Caribbean.

 

  1. What are the eligibility requirements?

Eligible member lending activity originated after the disaster declaration and within 90 days of receiving funding may be submitted as DRF support for advances related to financing of housing or economic development activities in communities located in a FEMA-designated disaster area.

Housing activities include the purchase, construction, rehabilitation or refinancing of, or predevelopment financing for individual owner-occupied housing units, projects involving multiple units of owner-occupied housing, rental housing, or manufactured housing parks, as defined in the CICA Regulation.

Economic development activities include commercial, industrial, manufacturing, social service, public or private facility and infrastructure activities, such as roads, utilities, and sewers.

Economic recovery efforts include immediate and long-term small business relief measures. DRF will support members in liquidity needs, shoring up balance sheets, and allowing them to offer continuous credit facilities.

Commercial and/or Mixed-Use eligibility is based on location criteria (FEMA-designated disaster areas). Eligibility for housing activities is based on existing CIP eligibility criteria.

 

  1. What are the funding limits for members?

DRF advances are initially limited to $25 million per member per month with an overall program limit of $50 million per member.  All FHLBNY credit conditions apply.

 

  1. What are the term limits for advances?

The minimum advance term is 30 days.

 

  1. Are there any location limits as to what projects will qualify for funding?

All projects must be within the confines of the FHLBNY District (New York, New Jersey, Puerto Rico and U.S. Virgin Islands) to be deemed eligible.

 

  1. What products can be used with FHLBNY Disaster Relief Funding?

Members may use Fixed or Floating-Rate Advances as well as Amortizing Advances.  Members may not use Symmetrical Prepayment Advances or structured products.  Please call the Member Services Desk at (212) 441-6600 or (800) 546-5101, Option 1, for more specific questions.

 

  1. Where can I find rates for less than 1 year?

Please contact the Member Services Desk at (212) 441-6600 or (800) 546-5101, Option 1, for live rate indications for less than 1 year.

 

  1. When does the look-back period begin for areas declared a disaster?

For DRF, qualified lending activities include loans with a settlement date on or after the FEMA declaration date for the particular disaster and within 90 days of the issued advance.  For some guidance, FEMA declared the following areas disasters for COVID:

New York – 3/20/2020

New Jersey – 3/25/2020

Puerto Rico – 3/27/2020

U.S. Virgin Islands – 4/2/2020

Additionally, DRF can also be used for Hurricanes Irma/Maria as well as the 2020 PR Earthquakes, which have their own respective declarations.

 

  1. What is the procedure for obtaining a commitment and the turnaround time?

The DRF process is the same as our Community Lending Programs with a turnaround time on a first-come, first-serve basis as workflows permit.

 

  1. Can a small business or non-profit receive the Small Business Recovery Grant while obtaining DRF funds?

Yes

 

  1. Can I use PPP loans as qualifying lending activity for funding?

Yes lending under the SBA’s PPP facility may qualify under the guidelines of the program provided that the loans were made to “for profit” entities and meet the SBA’s size parameters of a small business.

 

  1. How will we know when funds are exhausted?

The FHLBNY will send frequent notifications to its members about updates to the program.  You may also continue to check this website for more information about FHLBNY Disaster Relief Funding.

 

  1. Who can I contact with questions about Disaster Relief Funding?

If members have any questions about Disaster Relief Funding or the Small Business Recovery Grant Program, please reach out to the Community Investment Team directly:

For the Small Business Recovery Grant Program – [email protected]

For Community Lending Programs/Disaster Relief Funding – [email protected] or [email protected]

Members may also contact their relationship manager at (212) 441-6700, or the Member Services Desk at (212) 441-6600
or (800) 546-5101, Option 1.

 

Key Contacts

Relationship Managers:
(212) 441-6700
[email protected]

COVID-19 Relief Program Presentation

May 7th Webinar

Download the Deck