Whether a community needs an assisted-living facilty, more ownership opportunities for first-time buyers, or another type of affordable housing, members can turn to Community Development advances.

Eligible Housing
Members may use Community Development advances to provide financing for the purchase of, construction of, rehabilitation of, or predevelopment financing for:

• Multifamily, owner-occupied housing:
  
  
  • in an income-eligible neighborhood, or
    
    
  • in which at least 51 percent of the units are owned or are intended to be purchased by income-eligible families.
    
    
  
  
• Multifamily rental housing, cooperative housing, or manufactured-housing parks:
  
  
  • in an income-eligible neighborhood, or
    
    
  • in which at least 51 percent of the units are occupied by income-eligible families, or
    
    
  • in which the rents for at least 51 percent of the units do not exceed 30 percent of the income of income-eligible families.
    
    
• Multiple units of single-family, owner-occupied housing purchased or owned by income-eligible families. Financing for individual units of single-family, owner-occupied housing purchased or owned by income-eligible families is eligible if the mortgages are part of a program designed to increase homeownership, such as a first-time home-buyer program, and are identifiable separately from the member's standard loan portfolio.

Eligible Financing Activities
Members may use Community Development advances to:

• Originate eligible loans;
  
  
• Fund eligible loans that were originated up to three months before receiving the Community Development advance;
  
  
• Refinance eligible initiatives, provided that for the refinancing of rental housing and manufactured housing parks, any equity proceeds of the refinancing are used to rehabilitate the initiatives or to preserve affordability for current residents;
  
  
• Make loans to entities that, in turn, make loans for eligible housing initiatives;
  
  
• Purchase a participation interest, or provide financing to participate, in a loan consortium for eligible housing initiatives;
  
  
• Purchase Low Income Housing Tax Credits;
  
  
• Purchase mortgage-revenue bonds or mortgage-backed securities that finance or back loans that meet the Community Development advance eligibility requirement; or
  
  
• Create or maintain a secondary market for mortgage loans that meet the Community Development advance eligibility requirement.