What is the New England Fund (NEF) program?
Who can apply for an NEF advance?
How do NEF advances differ from Community Development advances?
What kinds of advances are available?
What maturities are available?
Are there any restrictions on the use of NEF advances?
Are there any reporting requirements?
What is the relationship between the NEF and Massachusetts Chapter 40B (the Comprehensive Permit Law)?

What is the New England Fund (NEF) program?
The NEF provides discounted loans (advances) for the financing of eligible affordable-housing and economic-development initiatives.

Who can apply for an NEF advance?
Only member financial institutions of the Federal Home Loan Bank of Boston can apply for an NEF advance. There are three applications: one for one- to four-family housing, one for multifamily housing, and one for economic-development initiatives. Applications are available online.

How do NEF advances differ from Community Development advances?
NEF advances are very similar to Community Development advances. Like Community Development advances, NEF advances are continuously available to members in accordance with the Bank's most recent products policy. However, the NEF serves a higher-income population than that served by Community Development advances and, therefore, its advances carry a higher interest rate.

What kinds of advances are available?
NEF advances are available as Classic, Amortizing, and Member-Option advances. Details and rates for these advances are available online. Other NEF advances may also be available. Members should contact the Housing and Community Investment Department, at housing@fhlbboston.com or 1-888-424-3863, for more information.

What maturities are available?
NEF advances are available with maturities of one month to 20 years for housing activities. They are available with maturities of one month to five years for economic-development activities. (Amortization schedules out to 30 years for amounts of $300,000 or greater.)

Are there any restrictions on the use of NEF advances?
Yes. Funding commitments must be used within six months of approval. A request for an extension of the commitment will be considered on a case-by-case basis. All commitments will be considered withdrawn if the funds have not been used within 12 months of approval. NEF advances may not be renewed.

In addition, when making a loan using a NEF advance, the member's spread on the loan may not exceed its standard spread on similar loans.

Are there any reporting requirements?
Yes. The NEF requires annual reporting on the use of funds beginning 12 months from the time funds are first drawn down and continuing until the program or project is completed and the funds are fully disbursed.

What is the relationship between the NEF and Massachusetts Chapter 40B (the Comprehensive Permit Law)?
The NEF had been used by Massachusetts members to fund developments issued comprehensive permits under Massachusetts General Law, Chapter 40B.

For more information, see the 40B development section of this Web site or the Massachusetts Department of Housing and Community Development's Web site.