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FEDERAL HOUSING FINANCE BOARD ANNOUNCES ESTABLISHMENT OF DISASTER RELIEF PROGRAMS FOR HURRICANE ANDREW VICTIMS

FEDERAL HOUSING FINANCE BOARD ANNOUNCES ESTABLISHMENT OF DISASTER
 RELIEF PROGRAMS FOR HURRICANE ANDREW VICTIMS
 WASHINGTON, Sept. 8 /PRNewswire/ -- The Federal Housing Finance Board announced today that the Federal Home Loan Bank of Atlanta and the Federal Home Loan Bank of Dallas have established special disaster relief programs to aid the victims of Hurricane Andrew.
 Daniel F. Evans, Jr., Finance Board chairman stated, "The Bank System stands ready to assist the victims of Hurricane Andrew's devastation. From the Great Depression to this most recent tragic occurrence, the Bank System continues to provide much needed housing assistance to those Americans most in need."
 Under these programs, the two FHLBanks will make funds available, on an open-window basis and at their cost of funds, in the officially declared disaster areas of Florida and Louisiana to lenders which are members of the two Federal Home Loan Banks.
 The FHLBanks, as government-sponsored enterprises, have an enhanced ability to raise funds in the capital markets at rates only slightly above the U.S. Treasury rates. Therefore, there is no predetermined ceiling to the amount of financing that may be provided under this program and funds provided under this special lending program will be very low-cost.
 The special financing, priced at the FHLBanks' cost of funds, can be used by banks and thrift institutions that are members of the two FHLBanks to make loans to disaster victims in south Florida and Louisiana for the restoration and rebuilding of homes and communities damaged or destroyed by the storm.
 Disaster relief program funds of the FHLBanks can be used as interim resources to assist persons awaiting insurance reimbursement or other payments, as well as for rehabilitation and repair loans, construction loans, and permanent mortgage financing. The funds can also be used for commercial projects in low- and moderate-income neighborhoods or which employ low- and moderate-income persons.
 To meet the needs created by Hurricane Andrew, the FHLBanks have expanded an existing program, the Community Investment Program (CIP), which is normally used for neighborhood rehabilitation and residential development. Under the CIP, funds are available for households with incomes below 115 percent of area median income and CIP loans are normally priced at the FHLBank's cost of funds plus a markup for administrative costs. Under the disaster relief program announced today, the household income limitation is 165 percent of median, and the funding is priced at cost, with no administrative markup.
 An important part of the FHLBanks' disaster relief program is a strategy of forging public/private partnerships to rebuild the damaged communities. As part of these outreach efforts the Dallas and Atlanta FHLBanks will be working with financial institutions, trade associations, government housing agencies, nonprofit organizations and builders, as well as task forces especially created to respond to the disaster.
 In addition to these efforts, the FHLBanks are exploring ways in which they can utilize 1993 Affordable Housing Program (AHP) funds to the damaged areas. The AHP funds are housing subsidy funds for low- and very-low income households.
 -0- 9/8/92 R
 /CONTACT: Marianne McInerney of the Federal Housing Finance Board, 202-408-2956/ CO: Federal Housing Finance Board ST: Florida, Louisiana IN: FIN SU:


KD -- DC037 -- 7195 09/08/92 17:03 EDT
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Publication:PR Newswire
Date:Sep 8, 1992
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