FHLBank Atlanta

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Federal Home Loan Bank of AtlantaJune 19, 2013

Joel Brockmann Rental Production Manager

Community Investment Services

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

• 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

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FHLBankProducts

CommunityDividend

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

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

$425 Millioncompetitive funding to create over 70,000 rental and homeownership opportunities for moderate-, low- and very low-income households since 1990.AHP Competitive Leverage Ratio – 1:14

$107 Millionfunded through AHP Set-aside products and supporting more than 16,490 units since 1997.AHP Set-aside Leverage Ratio –

1:17

$6.3 Billionlow-cost CICA advances supporting community economic initiatives and affordable housing development.

Scale and Impact

5*As of 12/31/2012

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 Commercial OpportunitiOpportunitieses

Single-Family Single-Family Mortgage Mortgage OpportunitiesOpportunities

Commercial Commercial OpportunitiOpportunitieses

FHLBank Atlanta

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• Rental transactions• Types

• Low-Income housing tax credit (LIHTC)• Non-LIHTC multi-family• Mixed-Use

• Reduces project debt service • Which thereby permits a reduction in project rents to enable

affordability• Use of Funds

• Acquisition • Rehabilitation• New Construction and/ or • Permanent funding

• Supportive Housing transactions • Social service residential facilities

AHP Competitive Product - Rental

FHLBank Atlanta

Mixed Use/Housing Community

Multi-family Rehab and New ConstructionElgin, IL, 55 units

AHP MemberOther

Sources

Acquisition $2,400,000 $2,400,000

Construction $11,592,000

$1,000,000 $750,000 $9,842,000

Soft Costs $1,623,000 $1,623,000

Other Costs $1,801,000 $1,801,000

Total Development Budget $15,016,000

$1,000,000 $750,000 $13,266,000

Total Member Debt – First Mortgage $750,000

Member Loan-to-value (LTV)/cost 4.9%

AHP Competitive $1,000,000

Total Member Debt if AHP converted to Debt $1,750,000

Member LTV/cost if AHP converted to Debt 11.65%

DCR 1.80

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

0.75

8“AHP has the ability to fill funding gaps.” – FHLBank Atlanta Member

FHLBank Atlanta

Mixed Use, Retail/Housing for Homeless

Multi-family Rehab and New ConstructionMobile, AL, 100 units

AHP MemberOther

Sources

Acquisition $450,000 $450,000

Construction $2,538,000 $225,000 $650,000 $1,663,000

Soft Costs $200,000 $200,000

Other Costs $62,000 $62,000

Total Development Budget $3,250,000 $225,000 $650,000 $2,375,000

Total Member Debt – First Mortgage $650,000

Member Loan-to-value (LTV)/cost 20.0%

AHP Competitive $225,000

Total Member Debt if AHP converted to Debt $875,000

Member LTV/cost if AHP converted to Debt 26.9%

DCR 1.35

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

0.96

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FHLBank Atlanta

Difficult to Develop/Critical Deals

AHP Member

Other Federal,

State and Local

Sources

Acquisition $375,000 $375,000 $0

Construction $692,343 $400,000 $292,343

Soft Costs $86,864 $86,864

Other Costs $28,100 $28,100

Total Development Budget $1,182,307 $400,000 $375,000 $407,307

Total Member Debt – First Mortgage $375,000

Member Loan-to-value (LTV)/cost 32%

AHP Competitive $400,000

Total Member Debt if AHP converted to Debt $775,000

Member LTV/cost if AHP converted to Debt 66%

DCR 1.40

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

0.55

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Multi-family RehabRidgecrest, NC, 50 unitsHousing for women with chronic substance abuse problems

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 Atlanta

Value 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

Value and Impact to Member 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

development

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FHLBank Atlanta

Continental National Bank, Miami, FL– Using products to partner with the Little Havana Alliance Little Havana Alliance to rehab

homes in targeted neighborhoods to support their CRA objectives

Old Florida National Bank, Longwood, FL– Leveraged AHP funds for a non-performing 48-unit apartment non-performing 48-unit apartment

complex, complex, allowing Old Florida National Bank to reposition the project, creating a new business relationship by making a construction loan and getting CRA credit for the project

“This is a great program and is getting us a lot of CRA credit.” Thomas Berrell, Senior Vice President, Old Florida National Bank

Dade County Federal Credit Union, Miami, FL– Using AHP products to establish new relationships with the

Miami/Dade Community Development DepartmentMiami/Dade Community Development Department

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FHLBank Atlanta

Stimulates Real Estate Activity

Housing

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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*

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FHLBank AtlantaThe Community Dividend at Work

Foreclosure Recovery

Garcia FamilyWingate, NC AHP Investment $15,000

Sales Price$82,000

Affordable Housing

Williams Square Apartments Durham, NC

AHP Investment $160,000

Total Development Cost $2,218,300

Affordable Housing

Egret Pointe Leland, NC

AHP Investment $576,000

Total Development Cost $7,250,001Community

Stability

Phillips FamilyHickory, NC

AHP Investment $5,000

Sales Price $70,900

Affordable Housing

The Landings at Winmore Carrboro, NC

AHP Investment$ 250,000

Total Development Cost $8,127,117

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Affordable Housing

Project New Hope Winston-Salem, NC

AHP Investment $150,000

Total Development Cost $1,499,021