Community Development Advance Extra Eligibility

Deeply discounted CDA Extra funds help members support affordable housing, economic development, and mixed-use initiatives in their communities. CDA Extra funds can be used to provide financing for the purchase, construction, refinance, rehabilitation, and/or predevelopment financing for:

Housing Initiatives

Project Type Eligibility Requirements

Single-Family Owner-Occupied

Project-specific initiative or mortgage financing program where the household income of homebuyers/homeowners is at or below 115% of area median income. If the application supports a mortgage financing program, loans must be:

• Part of a specific, targeted lending program with features designed to increase
  homeownership opportunities, such as, first-time homebuyer programs; and
• Identifiable as separate from the member’s standard loan portfolio

Multifamily Owner-Occupied

Multiple units of owner-occupied housing, such as a subdivision or new neighborhood development, in which at least 51% of the units are owned or intended to be purchased by families with incomes at or below 115% of area median income.

Rental or Cooperative Housing

• At least 51% of the units are occupied by families with incomes at or below 115% of area
  median income.
• The rents for at least 51% of the units do not exceed 30% of the income for families with
  incomes at or below 115% of area median income.

Manufactured Housing Parks

• At least 51% of the units are occupied by families with incomes at or below 115% of area
  median income.
• The rents for at least 51% of the units do not exceed 30% of the income for families with
  incomes at or below 115% of area median income.
• Initiative is located in a census tract with a median income at or below 80% of the area
  median income.

Eligible Economic Development Initiatives

Project Type Eligibility Requirements:

Economic Development

Funds can be used to support commercial, industrial, manufacturing, public facilities, social
service, or public or private infrastructure initiatives that:

• Are located in a census tract where the median income is at or below 80% of the area
  median income;
• Are located in a Champion Community, Empowerment Zone, Enterprise Community, or
  Indian area;
• Create or retain jobs, other than construction jobs, where the annual salaries for at least
  51% of the permanent full- and part-time jobs, computed on a FTE basis, are at or below
  80% of area median income; or
• Primarily serve or benefit individuals or families that have incomes at or below 80% of area
  median income.

Mixed-Use

Mixed-use initiatives must satisfy the targeted income requirements of at least ONE of the aforementioned eligibility criteria listed under Housing Initiatives AND Economic Development Initiatives.

Eligible Financing Activities

Members can use CDA Extra funds to:

• Originate eligible loans;
• Fund eligible loans that were originated up to three months before receiving CDA Extra funds;
• Refinance eligible affordable or economic development initiatives, provided that during 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 or economic development initiatives;
• Purchase a participation interest, or provide financing to participate in a loan consortium for eligible housing or
  economic development initiatives;
• Purchase Low Income Housing Tax Credits;
• Purchase mortgage revenue bonds or mortgage-backed securities, where all the loans financed by such bonds
  and all the loans backing such securities respectively meet the CDA Extra eligibility requirement; or
• Create or maintain a secondary market for loans, where all such loans are mortgage loans meeting the CDA
  Extra eligibility requirement.

Note: Funding supporting the construction, refinance, or development of a marijuana dispensary business or a member facility (such as headquarters/branches) is NOT eligible for the CDA Extra program.

Limits:

Each member will have access to disburse a maximum annual CDA Extra limit of $50 million. To ensure that each member disburses no more than $50 million in CDA Extra funding during any one calendar year, each member’s CDA Extra limit and approvals will be managed based on the following calculation:

CDA: $50 Million Member Funding Limit

• Less any unexpired approvals with an available for disbursement balance greater than $0
• Less CDA Extra disbursements during current calendar year
• Less the total amount requested of any submitted (unapproved) CDA application(s)

The Federal Home Loan Bank of Boston reserves the right to further limit the total amount of CDA funding available or to limit the amount of CDA available per member without notice.

Application:

Members can apply online for a CDA through the Bank’s website at https://housing.fhlbboston.com. The Bank will review applications within 10 business days.

Available Products and Maturities:

CDA Extra advances are available in maturities of six months and longer. Three kinds of advances are always available: Classic, Member-Option, and Amortizing. Classic Advances are fixed-rate advances with interest due monthly and principal due at maturity. Member-Option Advances are fixed-rate advances that are repayable without fee on specified cancellation dates. Other prepayment structures may also be available. Amortizing Advances are fixed-rate advances with monthly payments of interest and principal. Other terms and maturities may be available upon request.

Forward Rate Commitment:

To guard against rising interest rates, members may purchase a forward rate commitment to lock in the current rate for disbursement on a future date. Members may call our Member Funding Desk at 800-3573452 for pricing information on forward rate commitments.

Take-Down and Disbursement:

Taking down a CDA Extra is simple. Once the application is approved, the member calls
our Member Funding Desk to take down the funds.

Expirations:

Approvals for CDA Extra expire six months from the date of approval. If a member is unable to take down a CDA Extra within the specified take-down period, the member may submit a new application, provided that the funds requested are within their CDA Extra limit availability.

Spread:

When making a loan using the funds from a CDA Extra, the member’s spread on the loan may not exceed its standard spread on similar loans.

Reporting:

Applications approved under the CDA Extra program are subject to the Federal Home Loan Bank of Boston’s “Beneficiary Eligibility” reporting requirement. Members can provide documentation supporting program eligibility at the time of application or after disbursement. Documentation is subject to review and confirmation of compliance by the Federal Home Loan Bank of Boston.

Income Eligibility:

For loans qualified by income, the household income must be at or below 115% of area median
income for a housing initiative or 80% of area median income for an economic development initiative for a family of four based on the income guidelines as published annually by HUD. For loans qualified by income for the location, the census tract in which the property is located must be at or below 115% of area median income for a housing initiative or 80% of area median income for an urban initiative for the area as determined using www.ffiec.gov for the address or census tract.

Geographic Beneficiary

Below are the definitions of initiatives that are eligible for CDA Extra funding.

Affordable Housing Initiatives

Income-eligible families means one or more persons living in the same dwelling unit for whom total annual income is at or below 115% of the area median family income as published annually by HUD or by the median income for a family of four for the area obtained from the Federal Financial Institutions Examination Council.

Economic Development Initiatives

Creating or retaining jobs

Annual salaries for at least 51% of the permanent full- and part-time jobs, computed on a full-time-equivalent basis, created or retained by the initiative, other than construction jobs, must be at or below 80% of area median income as published annually by HUD or by the median income for the area obtained from the Federal Financial Institutions Examination Council.

Benefitting income-eligible families

At least 51% of the families who benefit from (other than through employment), or are provided services by, the initiative must have incomes at or below 80% of area median income as published annually by HUD or by the median income for the area obtained from the Federal Financial Institutions Examination Council.

Champion Community

Champion Community is a community that developed a strategic plan and applied for designation by either the Secretary of HUD or the Secretary of the United States Department of Agriculture (USDA) as an Empowerment Zone or Enterprise Community but was designated a Champion Community.

Empowerment Zone

An Empowerment Zone is an area so designated by either the Secretary of HUD or the Secretary of the USDA.

Enterprise Community

An Enterprise Community is a community so designated by either the Secretary of HUD or the Secretary of the USDA.

Indian Area

An Indian area is an area defined by the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et
seq.).

For a small business to be eligible it must qualify as ‘small business concern’ as that term is defined by section 3(a) of the Small Business Act (15 U.S.C. 632(a) and implemented by the Small Business Administration under 13 CFR part 121, or any successor provisions. Please refer to www.sba.gov for further SBA eligibility guidance.