TARGETED COMMUNITY LENDING PLAN (TCLP)

Overview

The TCLP is required by regulation and is approved annually by the FHLBank Atlanta Board of Directors. Governing regulation requires the Bank to conduct market research to identify and assess significant affordable housing needs across the Bank’s district, and to develop strategies and tactics for deploying Affordable Housing Program (AHP) funds and products to address identified needs. The TCLP is developed in consultation with the Bank’s Affordable Housing Advisory Council (Advisory Council) and with member financial institutions, housing associations, and public and private economic development organizations within the Bank’s district.

The Bank’s 2023 and 2024 TCLP consists of three components:

• State-level and District of Columbia Market Research
• Analysis of FHLBank Atlanta District Emerging Trends
• Goals, Strategies, Tactics, and Quantitative Measures of Success

The market research component includes a state-by-state and District of Columbia (DC) analysis of key housing and community related data points in the Bank’s district. The market research was conducted solely by Bank staff.

The emerging trends component includes several market trends derived from major findings from the state-by-state and DC market needs assessment conducted by the Bank. The identified emerging trends influence the goals, strategies, tactics, and quantitative measures of success.

The goals, strategies, tactics, and quantitative measures of success for the Affordable Housing Program (AHP) and Community Investment Cash Advance (CICA) program are delineated into three parts: products, services, and knowledge sharing. Each of the three parts include a statement of goals, how the goals advance the Bank’s Strategic Plan priorities, and the quantitative measures of success.

The Bank’s TCLP is aligned with and advances the Bank’s Strategic Plan. Each response includes a statement of goals, how the goals advance the Bank’s Strategic Plan priorities, and the quantitative measures of success. Additionally, several of the strategies and tactics are positioned to also advance elements of the Bank’s Diversity, Equity, and Inclusion (DEI) strategy and the Bank’s Incentive Compensation Plan.

Summary of Major Changes for 2023 and 2024 TCLP

General Fund Allocation
Consistent with past years, of the 10 percent of the Bank’s net income that is statutorily required for total Bank AHP allocation, 65 percent will be allocated to the AHP General Fund and 35 percent will be allocated to the AHP Homeownership Set-aside Program. However, for 2023 and 2024, 100 percent of all uncommitted, returned funds that are received by the AHP General Fund application deadline will be re-allocated to the General Fund as part of the Bank’s response to underserved markets within the FHLBank Atlanta district. Any uncommitted, returned funds received by the Bank after the General Fund application deadline will be allocated to the Homeownership Set-aside Program.

Homeownership Set-aside Program
For the 2023 and 2024 TCLP, the maximum AHP subsidy per unit increased to $12,500 for the First-time Homebuyer Product and to $15,000 for the Community Partners Product. The maximum AHP subsidy per unit remains $10,000 for the Community Rebuild and Restore Product.

Heirs’ Property General Fund Scoring
The 2023 and 2024 TCLP includes a refined General Fund scoring criteria that provides incentive for projects that involve the resolution of heirs’ property challenges. Organizations that submit applications during the General Fund round can receive a maximum of 10 points toward their application if the contemplated project includes a plan to address issues associated with heirs’ property. Two points will be awarded for each of the following features: education and awareness, pro bono legal services, academic research, local government innovation, and developer/contractor driven affordable housing initiatives.

Native American Tribes
The 2023 and 2024 TCLP includes data on Native American Tribes within the FHLBank Atlanta district. Through its market research, the Bank has determined that there are 46 state and federally recognized Native American Tribes within the district. The knowledge sharing response section of the TCLP tasks the Bank with engaging Native American tribal community organizations and related trade groups to promote understanding and participation in the Bank’s AHP and related products and programs.

Underserved Markets within the FHLBank Atlanta District
In an effort to respond to community lending needs within the Bank’s district, the 2023 and 2024 TCLP tasks the Bank with leveraging knowledge sharing activities to enhance education and outreach to underserved markets relative to AHP utilization, DC, and/or South Carolina. The 2023 and 2024 TCLP also includes General Fund scoring criteria that awards five points for in-district projects and five points for projects located in Difficult Development Areas (DDAs).