Federal Home Loan Bank of Des Moines

Affordable Housing Program

Stacy SnyderRental Housing Manager

August 2013

Federal Home Loan Bank System• Authorized by Congress in 1932, the Home Loan Bank System is

a government sponsored enterprise comprised of 12 regional, independent Banks.

• Over 8,000 commercial banks, thrifts, insurance companies and credit unions are cooperative members of the Home Loan Banks.

• The mission of the Banks is to provide liquidity and stability to the nation’s financial system, and to promote housing and economic development in communities.

• Member financial institutions borrow funds from the Banks to finance housing, economic development, infrastructure and jobs. About 80 percent of U.S. lending institutions rely on the Federal Home Loan Banks.

• As part of their mission, the Banks reserve 10% of Net Income each year for Affordable Housing Initiatives.

What does the Federal Home Loan Bank of Des Moines do?

• Provides Advances to Member institutions (banks, insurance companies, & credit unions)

• Government Sponsored Entity• As part of it’s mission, the Bank sets aside

10% of its Net Income each year for Affordable Housing initiatives

Who does FHLB Des Moines serve?• The Bank’s

5 state district includes:– Iowa– Minnesota– Missouri– North Dakota– South Dakota

FHLB Des Moines Members

• More than 1,200 members which include:– Commercial Banks– Credit Unions– Thrifts– Insurance Companies– Housing Associates

Community Investment Programs

• Affordable Housing Program (AHP)

• Set Aside Programs– Homebuyer Fund– Native American Homeownership Initiative

• Community Investment Advances

• Questions

Affordable Housing Program (AHP)• Competitive award program

• Receive 100-120 applications annually. Fund 25-40%.• Funds can be used for the purchase, construction,

or rehabilitation of affordable housing units • Maximum award $300,000 (2012) / $500,000 (prior years)• Maximum subsidy of $30,000 per unit

• Households must be at or below 80% of Area Median Income (AMI) ** NOTE: At least 20% of units must be targeted at 50% AMI

or below on Rental projects• Retention Periods / Deed restrictions:

• Rental = 15 years / Homeownership = 5 years

Project Types

Homeownership• Development Projects - New Construction and Acquisition/Rehab

• Development – Habitat for Humanity Projects

• Owner Occupied Rehabilitation

• Down Payment and Closing Cost Assistance

AHP Projects Funded 1990 - 2011• Minnesota = $69.5 million (381 projects)• Missouri = $48.9 million (235 projects)• Iowa = $38.7 million (283 projects)• South Dakota = $27.0 million (134 projects)• North Dakota = $10.6 million (57 projects)• Out of District = $9.8 million (61 projects)

Total development costs = $1.6 Billion

Total AHP Funds Awarded = $205 millionTotal Projects = 1,151Total Units created/rehabbed = 41,408

AHP Scoring Criteria• Priority 1 – Donated property• Priority 2 – Non-profit or Government Entity Sponsorship• Priority 3 – Income Targeting• Priority 4 – Homeless Households• Priority 5 – Promotion of Economic Empowerment• Priority 6 – First District Priority (in-district, special needs households)• Priority 7 – Second District Priority (Native American, acquisition-rehab) • Priority 8 – Subsidy Per Unit• Priority 9 – Community Stability (Vacant & Abandoned, Adaptive Re-Use,

New Construction, & No Displacement)

5102055

18171010

Points

Scoring priorities change from year-to-year. Keep up-to-date with the scoring criteria in the AHP Implementation Plan.

. NOTE: Commitments made in the application must be met for the . entire retention period (Rental = 15 years / Homeownership = 5 years)

AHP Implementation Plan

The AHP Implementation Plan is updated annually. Training materials can also be found on the website.

NOTE: The AHP online application will be accessible Monday through Sunday from 7:00 a.m. through 10:00 p.m Central Time.

No applications will be accepted after the AHP deadline listed below. In addition, any applications with missing Exhibits at the time of the deadline will be considered incomplete.

Pre-Application Start: 7:00 AM February 1, 2014

Pre-application End: 4:30 PM March 15, 2014

Registration Start: 7:00 AM March 15, 2014

Registration End: 4:30 PM April 15, 2014

Application Start: 7:00 AM April 1, 2014

Application End: 4:30 PM May 15, 2014

Member Bank Approval Start: 7:00 AM April 1, 2014

Member Bank Approval End: 4:30 PM May 15, 2014

AHP AWARDS ANNOUNCED November, 2014

** All times are Central Time. **

* IMPORTANT DATES – 2014 AHP Applications *

Member & Sponsor Roles /Responsibilities

• Sponsor must request support from a Member • Sponsor registers with FHLB Des Moines• Member provides Sponsor with User ID and

Password• Sponsor completes AHP Application• Member “approves” AHP Application

– During AHP Application Process

NOTE: The AHP Application is not considered complete and . eligible to receive AHP funds until the Member approves it

Leasburg Rehabilitation – USDA - MOUSDA

projects have

received more than $10 million

in AHP funds to

rehabilitate elderly

rental units

Leasburg Rehab – USDA - MO

Hamilton Housing – USDA – MO

White Earth Reservation

White Earth

White Earth

White Earth

Community Investment Department Contacts

• Stacy Snyder, Rental Housing Manager• Brandon Wiltgen, Rental Housing Analyst• Renee Marrs, Rental Housing Specialist

• Rick Bloxham, Homeownership Manager• Mary Jo Vogl, Homeownership Analyst• Evelyn Bengtson, Set Aside Homeownership Analyst

• Gary Dodge, Director Community Investment• Laura Newberry, Operations Manager• Cheryl McCollum, Community Investment Specialist

Rental Housing

Homeownership

Administrative

Thank You!

Stacy SnyderRental Housing Manager

Federal Home Loan Bank of Des Moines(515) 281-1042

ssnyder@fhlbdm.comwww.fhlbdm.com