Housing Supply Rate Buydown Advance
What it is
The Housing Supply Rate Buydown Advance helps boost the production and preservation of housing units across the FHLBank Indianapolis district by allowing members to borrow at subsidized rates to facilitate lending to affordable housing development projects.
Rates may be subsidized to as low as 0% to support construction, bridge or permanent financing of housing development projects that meet certain affordability criteria.
How it works
- FHLBank Indianapolis members take out an advance
- Members loan those funds directly — or indirectly through a community development financial institution (CDFI) or housing fund — to eligible housing development projects
- Eligible projects must be located in Indiana or Michigan and designate a portion of units restricted at 120% Area Median Income (AMI) or below
- Members independently underwrite their loans
- Interest rate on the member loan is capped at 300 basis points over the subsidized advance rate
- $6 million is available in interest subsidies with a $550,000 subsidy cap per member
Key information
- Total allocation: $6 million
- Member cap: $550,000
- Program opens: July 31
- Program closes: Oct. 15
Program materials
June 16 webinar recording:
June 16 webinar slide deck
Program guide
An FAQ will be posted shortly. The program application is available through MemberLink.