FHLB Des Moines Eases Targeting Requirements and Member Limits for Community Investment Advances in Federal Disaster Areas

Communities across the Bank’s district are bracing themselves or trying to recover from devastating natural disasters. FHLB Des Moines will be supporting those communities and our members by easing the targeting requirements for Community Investment Advances (CIA) for residential and commercial loans in Federal Disaster areas that assist with disaster recovery. Loans will not need to be tied to income targeting or targets for small business or small farm loans to qualify. The Bank is also waiving the $6 million member limit for Disaster Advances on a case-by-case basis.

FHLB Des Moines will continue to monitor circumstances in declared disaster areas and work with our members on any issues that may develop in order to facilitate continued access to FHLB Des Moines funding. For more information and for approval of an advance request, please contact the Community Investment Department by calling 800.544.3452, ext. 1173 or communityinvestment@fhlbdm.com.
 

---

Federally Declared Disaster Areas

If you are serving borrowers located in a Federal Disaster Area, you may be eligible for a Community Investment Advance (CIA). To determine if an area has a Federal Disaster Area designation and for more disaster related information, visit the FEMA website at http://www.fema.gov/.
 

---

Program Guidelines for Community Investment Advances in Federal Disaster Areas

FHLB Des Moines members with projects in a Federal Disaster Area are eligible for advances under the CIA program, as a Commercial Lending Advance or a Residential Lending Advance. Under these programs, residential and commercial loans may qualify for advances if they are used to finance repairs or losses related to a federally declared disaster... Loans must be originated within 18 months of the Federal Disaster Declaration and serve residences, farms, businesses or communities in the disaster area. The standard requirements of FHLB Des Moines credit and collateral policies always apply to these special advances which can be obtained for terms from one year to 20 years.

In the case of a Residential Lending Advance, qualifying loans must be located in the Federal Disaster Area and loan funds must be for repairs or losses related to the disaster. Residential Lending Advances may be used for owner occupied or rental residential property. A member must provide a concise project description in their Residential Lending Advance Request for Funds that includes the date of the loan, loan amount, property address and loan purpose.

In the case of a Commercial Lending Advance, qualifying loans must be located in the Federal Disaster Area and loan funds must be for repairs or losses related to the disaster. Loans may be made to a farm, business, social organization or community. A member must provide a concise project description in their Commercial Lending Advance Request for Funds that includes the date of the loan, loan amount, property address and loan purpose.

The FHLB Des Moines per member Community Investment Advance limit of $6 million may be waived on a case-by-case basis for any member borrowing funds for a qualifying Disaster Area project. The Bank reserves the right to cap the amount of CIA to any single member for use in a federal disaster area.

Important: The interest rate on the amount of any Disaster Advance borrowed by a member but not used in accordance with the aforementioned guidelines will revert to the interest rate in effect on a comparable non-CIA at the time the Disaster Advance was requested and that higher rate of interest will be assessed from the original disbursement date.

For more information and for approval of the advance request, please call the Community Investment Department at 800.544.3452, ext. 1173.
 

Additional FHLB Des Moines Advances

Affordable Housing Programs