The Seattle Bank’s Community Investment Program and Economic Development Fund (CIP/EDF) offer advances for a wide variety of community investment purposes—all at the Seattle Bank’s cost of funds. In addition, CIP/EDF offer discounted rate locks and Standby Letters of Credit (LOCs) for eligible projects. Given the option to fulfill your CRA requirements and enhance your community profile while protecting your margins, why wouldn’t you consider using these programs to support affordable housing and economic development initiatives in your communities?

Key Benefits

• Eligible projects typically receive a 10 – 20 basis point discount on advances. Standby LOCs, and rate locks are accorded discounts relative to LOCs and locks on “non-eligible” projects.
• The types of projects eligible for CIP/EDF may also be eligible for CRA credit.
• Investment-grade municipal bonds may be used as collateral for CIP/EDF Standby LOCs.
• Our short and easy-to-use application can be quickly prepared and submitted any time an opportunity presents itself.
• Once the application has been approved, the only follow-up required is completion of a one-page certification form indicating, among other things, that you used the CIP/EDF advance for the project indicated in your application.
• In addition to great rates, ease of use, and CRA funding, CIP/EDF offer yet another opportunity to build good will for your institution within your community.

Income Eligibility

• For Housing: Finance the predevelopment, purchase, construction, or rehabilitation of affordable rental or owner-occupied housing in which at least 51% of the units are occupied by—or the rents are affordable to—families earning up to 115% of area median income.
• For Economic Development:
• Finance economic development activities that benefit urban areas with income targets up to 100% of area median income or rural areas with income targets up to 115% of area median income, OR
• Finance economic development activities located in the following areas, regardless of the incomes being served: rural or urban champion community, Empowerment or Enterprise Community, Indian Area as defined by NAHASDA, Alaska Native Village, Native Hawaiian Homeland, Brownfield Tax Credit Area, military base closing area, or state or federal disaster area.

Eligible Uses

• Finance loans for construction, rehabilitation, purchase, or refinancing of existing loans when refinance is necessary to rehabilitate or preserve affordable housing.
• Finance economic development loans for commercial, manufacturing, social service, public facility projects and services, private/public infrastructure, and small businesses.
• Purchase state housing finance agency bonds or mortgage-backed securities representing pools of loans that could be funded directly with CIP/EDF advances.
• Investment in lender consortia or low-income housing tax credits, as long as the underlying mortgages can be funded directly with CIP/EDF advances.

Program Requirements

• Advances must have a minimum term of three years. There is no minimum or maximum advance amount. *
• CIP/EDF advance may not have been originated more than 90 days before the effective date of the associated loan.
• Prepayment fees apply.
• Advances are made at the locked-in interest rate, regardless of the current advance rate.
• Advances are subject to the member’s credit line limit, and the member must meet the Seattle Bank’s standard collateral requirements.

Contact your Seattle Bank Business Development Team today to learn more about our CIP/EDF advances and how they can help you meet your CRA requirements, protect your margins, and realize a variety of other benefits.

Visit the Seattle Bank’s Web site to learn more about all of the Seattle Bank’s community investment products.

* Revised November 20, 2006, to reflect a reduction in the term requirement from five years to three years, made by the Seattle Bank Board of Directors and Affordable Housing Advisory Council.

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