HCD Product Profile: CHP Plus

FHLBank Topeka’s Community Housing Program Plus (CHP Plus) provides members with wholesale loans (advances) priced below FHLBank’s cost of funds to help finance rental housing projects affordable to households at or below 80 percent of area median income (AMI) 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 rental housing.

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. Through most of the year, members are limited to only two CHP Plus projects. As of June 15, this restriction has been lifted until the remaining 2006 funds have been disbursed.

• Regular Fixed Rate Advances
• Callable Advances
• Amortizing Fixed Rate Advances
• Adjustable Rate Advances

Common Uses
 

• Construction and/or permanent financing for new multifamily rental projects
• Refinancing existing multifamily rental properties

To find out more about the specifics of the CHP Plus program, click here. Also, look for an in-depth profile of the program in the upcoming issue of Focus, FHLBank’s member newsletter.