CICA Programs for Economic Development
The Community Investment Cash Advances (CICA) programs of the twelve Federal Home Loan Banks (FHLBanks) offer funding, including low-cost, long-term funds for member financial institutions (banks and thrifts) and other eligible lenders to use to provide financing for projects that are targeted to certain economic development and housing activities. Economic development projects include commercial, industrial, manufacturing, social service, infrastructure projects, and public facility projects and activities.
Lenders may use CICA funding from a Federal Home Loan Bank (FHLBank) for a variety of financing to entities with activities that benefit targeted economic development. CICA funding may be used for businesses and activities located in certain geographic areas and for small businesses located anywhere. In addition, there are three income-targeted CICA programs used for economic development:
· Rural Development Advance (RDA) Program: Projects in rural areas for beneficiaries with incomes at or below 115% of the area median income (AMI);
· Urban Development Advance (UDA) Program: Projects in urban areas for targeted beneficiaries with incomes at or below 100% of AMI; and
· Community Investment Program (CIP): Projects located in low- or moderate-income (80% of AMI) neighborhoods or that benefit low- or moderate-income families. (The CIP is also used for affordable housing).
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Funding Category: |
Funding to finance targeted economic development projects directly (loan originations and purchases) or indirectly (purchasing eligible mortgage-backed securities, mortgage-revenue bonds and low-income housing tax credits or lending to other lenders for eligible purposes). |
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Target Population: |
Residents of neighborhoods in which the median income is at or below the applicable targeted income level (e.g., 115% of AMI for RDA, 100% of AMI for UDA, 80% of AMI for CIP). |
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Funding Available: |
In FY 2000, Advances for Economic Development totaled $832.5 million. |
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Application Information: |
Home Loan Bank of New York (Executive Office), 200 Park Avenue, New York, New York 10166-4193, |
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Contact: |
Donald J. Wolff, Community Investment Officer, Federal Home Loan Bank of New York, 200 Park Avenue |
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Links To More Info: |
FHFB CICA Programs for Economic Development Targeted Beneficiaries For Economic Development Guide to Individual FHLBank CICA Programs for Economic Development
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Administering Agency: |
New York Federal Home Loan Bank, Federal Housing Finance Board |