The CDP helps you finance commercial, small business and other economic development loans at below market rates and various terms.
FHLBank Topeka’s Community Development Program (CDP) is a special advance program authorized by the Federal Housing Finance Agency's (FHFA) Community Investment Cash Advance regulations. The CDP provides wholesale loans (advances) priced below FHLBank’s regular advance rates to help members finance qualifying commercial loans, farm loans and community and economic development initiatives in the areas they serve. This favorable pricing, coupled with the availability of funds in terms of four months to 30 years, helps lenders extend long-term, fixed rate credit for community development. Comparable funding for owner-occupied and rental housing is available through FHLBank’s Community Housing Program (CHP) advances.
CDP Advance Products and Programs
- Regular fixed rate advances
- Callable advances
- Amortizing fixed rate advances
- Adjustable rate advances
- Agricultural loans for operating, equipment, breeding stock, real estate or refinancing;
- Commercial and small business loans for real estate, equipment, rolling stock, or refinancing;
- Community loans for infrastructure, public facilities, or equipment;
- Nonprofit lending for churches, schools, daycares and museums; and
- Purchase of a participation interest in or actually participating in a loan consortium for CDP-eligible projects.
TERMS AND CONDITIONS
Members must comply with FHLBank’s lending procedures as identified in the Credit Guidelines section of the Member Products and Services Guide. CDP advances cannot be used to finance any direct activity of the member or an affiliate of the member. Members are precluded from using CDP advances for their own benefit. The minimum amount of a CDP advance is $10,000.
CDP advances are priced at FHLBank’s cost of issuing consolidated obligations of comparable maturities, including concession costs, plus a reasonable allowance for administrative costs. Callable, amortizing and adjustable rate CDP advances are priced in a similar manner using market interest rates applicable to FHLBank obligations of comparable maturities and call features. CDP advance rate pricing must be applied on the date the advance is issued.
If FHLBank determines that a member is not complying with the terms, conditions or regulations of the CDP, the interest rates on the outstanding CDP advances may be changed to the comparable market rates that were in effect at the time of the original funding. Members will be given the opportunity to appeal such determinations before FHLBank implements any rate adjustment.
CDP advances are available in maturities from four months to 30 years. Advance terms should be consistent with the proposed use of funds.
The normal prepayment fee will apply to CDP advances. For details, refer to the specific advance program.
CDP advances must be fully collateralized on the date of issuance and at all times thereafter. Please refer to the Collateral Guidelines section of the Member Products and Services Guide.
Members should allow 48 hours for processing a CDP application. Provided an approved CDP application is on file, CDP advances may be requested until 4 p.m. CT.
Failure on the part of a member to supply any requested documentation may result in the member being restricted from access to FHLBank's Housing and Community Development programs.
Questions? Housing and Community Development Department, ph: 866.571.8155, e-mail HCDCSP@fhlbtopeka.com.
At application: Completed CDP application, including a list of loans for which the advance will be taken.
Within 60 days of advance withdrawal: If not provided with the CDP application, a copy of the note(s) that documents the proceeds of the advance have been used for the approved CDP project.
Securely transfer Community Development Program (CDP) applications and documentation with Proofpoint.
FHLBank is now utilizing Proofpoint to ensure the secure electronic transfer of personally identifiable information (PII) to FHLBank. Sign up for a Proofpoint account to begin transferring all CDP applications and accompanying documentation. Housing and Community Development will no longer accept documents through TrueShare after 5 p.m., Monday, Dec. 12, 2016.
You must sign-up for an account before transferring documents.
Download the complete Proofpoint User Guide here.
**Please note: You must verify your Proofpoint account within 30 minutes after receiving the verification email or you will be required to register again.
You may utilize the Proofpoint button below to register for a Proofpoint account. Once you have registered, the Proofpoint button below can be used to access Proofpoint to securely transfer all CDP documents. Please email all CDP documents to HCDCSP@fhlbtopeka.com thru Proofpoint. If you have any issues using Proofpoint, contact HCD at 866.571.8155 between 8 a.m. and 5 p.m. Monday thru Friday.