Community Housing Programs
Community Housing Programs (CHP and CHP Plus) are special advance programs authorized by the Finance Agency’s Community Investment Cash Advance (CICA) regulations. These programs provide members with wholesale loans (advances) priced below FHLBank’s regular advance rates to help finance owner- and renter-occupied housing in their communities. This favorable pricing, coupled with the availability of funds in terms of four months to 30 years, helps lenders extend long-term, fixed rate credit for housing.
CHP/CHP Plus Advance Products and Programs
- Regular fixed rate advances
- Callable advances
- Amortizing fixed rate advances
- Adjustable rate advances
COMMON USES
- Single-family home loans (CHP)
- One-to-four family rental properties (CHP or CHP Plus)
- Multifamily rental projects (CHP or CHP Plus)
TERMS AND CONDITIONS
Limitations
Members must comply with FHLBank’s lending procedures as identified in the Credit Guidelines section of the Member Products and Services Guide. CHP/CHP Plus advances cannot be used to finance any direct activity of the member or an affiliate of the member. Members are precluded from using CHP/CHP Plus advances for their own benefit. The minimum amount of a CHP/CHP Plus advance is $10,000.
FHLBank will provide up to $25 million annually in CHP Plus advances, and each project is limited to $2 million. Members are limited to no more than a 200-basis-point markup to their customer above CHP Plus advance rates. However, members are not limited on CHP markups. A member may obtain CHP Plus advances for no more than two projects per year. However, members may obtain CHP Plus advances for additional projects after June 15 of each year if CHP Plus funds remain available.
Rate
CHP advances are priced at FHLBank’s cost of issuing consolidated obligations of comparable maturities, including concession costs, plus a reasonable allowance for administrative costs. CHP Plus advances are priced at FHLBank’s cost of issuing consolidated obligations of comparable maturities, including concession costs. Callable, amortizing and adjustable rate CHP/CHP Plus advances are priced in a similar manner using market interest rates applicable to FHLBank obligations of comparable maturities and call features. CHP/CHP Plus advance rate pricing must be applied on the date the advance is issued.
If FHLBank determines that a member is not complying with the terms, conditions or regulations of the programs, the interest rates on the outstanding CHP/CHP Plus advances may be changed to the comparable market rates that were in effect at the time of the original funding. Members will be given the opportunity to appeal such determinations before FHLBank implements any rate adjustment.
Term
CHP/CHP Plus advances are available in maturities from four months to 30 years. Advance terms should be consistent with the proposed use of funds.
Prepayment Option
The normal prepayment fee will apply to CHP/CHP Plus advances. For details, refer to the specific advance program.
Collateral
CHP/CHP Plus advances must be fully collateralized at the date of issuance and at all times thereafter. Please refer to the Collateral Guidelines section of the Member Products and Services Guide.
Availability
Provided an approved CHP/CHP Plus application is on file, CHP/CHP Plus advances may be requested until 4 p.m. CT.
Failure on the part of a member to supply any requested documentation may result in the member being restricted from access to FHLBank's Housing and Community Development programs.
Questions? Housing and Community Development Department, ph: 866.571.8155, e-mail: HCDCSP@fhlbtopeka.com.
Community Housing Profile
 Project: Villa de Sante
Member Bank: National Bank of Omaha
CDP Plus Funding: $600,000
FHLBank representatives and Congressman Lee Terry attended the grand opening of Villa de Sante Terrace, a senior apartment complex that received a $600,000 CHP Plus advance and $180,000 in Affordable Housing Program funds. Each of the 36 units is marketed to low-income seniors age 55 and over who earn 50% or less of the area median income. The project also offers significant support services that help residents live independently while meeting their physical and social needs. FHLBank member First National Bank of Omaha teamed with the Omaha Economic Development Corp. to apply for CHP Plus and AHP funding. |
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