The Community Investment Program (CIP) is a lending program in which member banks and thrifts borrow advances (loans) at a discounted rate of interest. Lenders may use CIP advances to fund the purchase, construction, rehabilitation, refinancing or predevelopment financing of:

o        owner-occupied housing for individual families with incomes that do not exceed 115% of the area median income (AMI); or for projects in which at least 51% of the units are owned by households with incomes at or below 115% of AMI;

o        rental housing in which at least 51% of the units are occupied by or the rents are affordable to families with incomes at or below 115% of AMI; or

o        manufactured housing parks in which at least 51% of the units are occupied by or the rents are affordable to families with incomes at or below 115% of AMI; or which are located in neighborhoods with a median income at or below 115% of AMI.

Lenders may use the proceeds of CIP funding to finance housing directly (loan originations and purchases) or indirectly (purchasing eligible mortgage securities, mortgage-revenue bonds and low-income housing tax credits or lending to other lenders to make eligible loans). The FHLBanks discount the interest rates on CIP advances and may require the lender to pass through this discount to its own borrowers.

Funding Category:	Lending program at discounted interest rates or to obtain AAA-rated letters of credits from Federal Home Loan Banks to fund purchases, construction, rehabilitation, rehabilitation or predevelopment financing of owner-occupied housing, rental housing, or manufactured housing parks for low-income families.
Target Population:	Very low-, low- and moderate-income households and neighborhoods
Funding Available:	In 2000, total FHLBank System CIP advances were $3.158 billion. Advances for housing were $2.325 billion, which financed 38,518 units of housing. 71.5% of these units were owner-occupied and 28.5% were rental units. Advances for economic development was $832.5 million in 2000.
Application Information:	New York Federal Home Loan Bank (FHLBank), (212) 294-1800
Contact:	Home Loan Bank of New York Joseph Gallo, Vice President, Community Investment, Federal Home Loan Bank of New York, 101 Park Avenue, New York, NY 10178-0599, 212-441-6851 Tel., 212-949-0652 Fax and Federal Housing Finance Board 1625 Eye Street, NW Washington, DC 20006-4001, (202) 408-2500 Tel., (202) 408-2530 Fax
Links To More Info:	Federal Home Loan Bank's Community Development Programs Federal Housing Finance Board Community Support Programs Description
Administering Agency:	New York Federal Home Loan Bank, Federal Housing Finance Board