/PRNewswire/ -- Federal Home Loan Bank of Atlanta (FHLBank Atlanta) today announced that it has utilized authority approved by Congress to provide over 50 letters of credit totaling more than $2.2 billion for non-housing-related tax-exempt bond transactions, stimulating economic development and lowering the cost of borrowing for public finance projects.
The Housing and Economic Recovery Act of 2008 (HERA) authorized FHLBank Atlanta to provide credit support for tax-exempt bonds issued or refunded between July 30, 2008 and Dec. 31, 2010. Traditionally, FHLBank Atlanta provided letters of credit for housing-related and taxable financing, and HERA now permits the support of a wider range of public projects, including economic development, public utility, and healthcare facilities.
FHLBank Atlanta's triple-A credit rating allows local governmental entities to borrow at lower costs while helping to maintain the flow of financing within a tighter credit market. In a typical transaction, FHLBank Atlanta serves as a provider of credit enhancement for the transaction on behalf of its member institutions as they work directly with municipal bond issuers.
Since Aug. 2008, FHLBank Atlanta has provided confirming letters of credit under HERA authority on behalf of 11 member financial institutions to support transactions that include $1.2 million for the Industrial Development Board of the City of Oxford (Alabama) and $108.7 million for the North Carolina Medical Care Commission.
"By lowering the cost of municipal bond transactions, we continue to support economic development activities in these communities during an ongoing period of budget constraints," said Richard A. Dorfman, FHLBank Atlanta President and Chief Executive Officer. "This Congressional authority has provided FHLBank Atlanta with the opportunity to make an important difference in the communities we serve through our member institutions."
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Tuesday, January 26, 2010
Federal Home Loan Bank of Atlanta Utilizes Congressional Authority to Provide More Than $2.2 Billion in Credit Support for Tax-Exempt Municipal Bonds
Friday, January 16, 2009
Federal Home Loan Bank of Atlanta Awards $43 Million for Affordable Housing Development
/PRNewswire/ -- Federal Home Loan Bank of Atlanta (FHLBank Atlanta) announced today that it will award more than $43 million to fund 85 affordable housing projects in ten states.
Local community developers, in partnership with FHLBank Atlanta member institutions, will use $38.6 million of the funds to buy, build, or preserve 4,040 affordable housing units in seven states within its district including Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, and Virginia. Partnerships in three states (Tennessee, Texas and Louisiana) outside the Bank's district will receive funds totaling $4.4 million to develop 474 housing units.
FHLBank Atlanta has awarded the funds as part of its 2008 Affordable Housing Program (AHP) offering. In addition, the 2008 AHP funds will be combined with other funding sources to develop more than $330 million of affordable housing.
"Now more than ever, the private investment capital provided by our Community Investment Programs stimulates much needed growth in communities by revitalizing neighborhoods, creating jobs, and supporting economic development," President and Chief Executive Officer of FHLBank Atlanta Richard Dorfman said. "AHP funds leverage lending by our member banks and other financial partners during a time when credit availability has been limited. By focusing our resources on preserving existing affordable housing and financing new affordable housing, our aim is to be a critical resource in confronting the housing and economic challenges many communities within our region are facing during these difficult economic times."
FHLBank Atlanta-AHP awards range from $30,000 to $1 million and will be made in the following states in FHLBank Atlanta's district:
-- Alabama ($3,557,941 for 351 units)
-- Florida ($9,247,136 for 666 units)
-- Georgia ($12,430,908 for 1,359 units)
-- Maryland ($1,490,000 for 178 units)
-- North Carolina ($5,885,815 for 541 units)
-- South Carolina ($4,047,116 for 603 units)
-- Virginia ($1,947,810 for 308 units)
AHP is a competitive funding program that helps develop owner-occupied and rental housing for very low-, low-, and moderate-income families. FHLBank Atlanta awards the funds annually to member financial institutions and their community housing partners. AHP is a component of FHLBank Atlanta's affordable housing, economic development, and down-payment assistance initiatives. For the complete list of winners, visit www.fhlbatl.com/ahp.
Some of the statements made in this press release may be "forward-looking statements," which include statements with respect to the Bank's beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, many of which may be beyond the Bank's control, and which may cause the Bank's actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements.
The forward-looking statements may not be realized due to a variety of factors, including: future economic and market conditions; changes in demand for advances or consolidated obligation; changes in interest rates; legislative and regulatory changes; political, national and world events; and adverse developments or events affecting or involving other FHLBanks or the FHLBank System in general. Additional factors that might cause the Bank's results to differ from these forward-looking statements are contained in the Bank's annual and quarterly reports, available on the Bank's website at www.fhlbatl.com.
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Monday, September 29, 2008
Federal Home Loan Bank of Atlanta Declares Third Quarter Dividend, Changes Dividend Schedule
PRNewswire/ -- The board of directors of Federal Home Loan Bank of Atlanta (FHLBank Atlanta) has approved an annualized dividend rate for the third quarter of 2.89 percent. This rate is equal to average three-month LIBOR (London Interbank Offered Rate) for the period July 1, 2008 to Sept. 29, 2008. The dividend is applicable to capital stock held during the period of July 1, 2008 to Sept. 30, 2008, and will be credited to members' daily investment accounts at close of business on Oct. 1, 2008.
The annualized dividend rate is lower than previous third quarter guidance because of recent volatility in the financial markets and a more conservative financial management approach in light of these conditions. In addition, the Bank will change its dividend declaration and payment schedule beginning in the fourth quarter of 2008 so a dividend can be declared and paid to member accounts after net income is calculated for the preceding quarter. To accommodate this change, the Bank will declare any fourth quarter dividend at the end of Jan. 2009 and pay it into member accounts at that time.
The Bank recognizes the value our dividend provides to member financial institutions. During the first three quarters of 2008, the Bank has paid an annualized dividend rate of 4.88 percent, which exceeds average three-month LIBOR by approximately 190 basis points. "Dividends are an attractive aspect of our cooperative, and we anticipate that once we move beyond this transition period, members will appreciate the certainty associated with the new dividend schedule," said Richard A. Dorfman, President and CEO of FHLBank Atlanta.
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Wednesday, September 10, 2008
Federal Home Loan Bank of Atlanta Approves Agreement with the U.S. Treasury as Backup Liquidity Source
PRNewswire/ -- The Federal Home Loan Bank of Atlanta ("Bank") announced today it has approved a lending agreement with the U.S. Department of the Treasury ("Treasury") that is designed to serve as a source of contingent liquidity for the Bank's debt issuance activities.
The agreement stems from provisions of the Housing and Economic Recovery Act of 2008, which provided the Treasury with the authority to establish such a facility. The terms of the agreement are described in the Bank's Current Report on Form 8-K filed today. The agreement expires on Dec. 31, 2009, or sooner if the Bank determines it will not need the Treasury support. Any loan under the agreement would be secured by certain Bank assets, such as advances to members or by mortgage-backed securities issued by Fannie Mae or Freddie Mac.
"The Bank appreciates the U.S. Treasury's interest in establishing a clearly-defined operational agreement should the Federal Home Loan Banks require added liquidity support for our debt," said Richard A. Dorfman, FHLBank Atlanta President and Chief Executive Officer. "It is essential that the Bank continue to execute its mission of providing affordable liquidity to lenders, and this agreement makes it clear the federal government supports that role."
Each of the 12 Federal Home Loan Banks has entered into such an agreement. Extensions of credit by the Treasury to the FHLBanks, or to any FHLBank, will be considered a consolidated obligation and will be the joint and several obligation of all of the FHLBanks. However, Dorfman noted that at this time, the Bank does not anticipate that it will need to tap the lending facility.
About the Federal Home Loan Bank of Atlanta
The Bank is a cooperative financial services organization that provides funding, community development grants, and other banking services to more than 1,200 member financial institutions in Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and the District of Columbia. The Bank is one of 12 district banks in the Federal Home Loan Bank System (the FHLBank System), which since 1990 has contributed more than $2 billion to affordable housing development in the United States.
Some of the statements made in this announcement, including, without limitation, the Bank's plans to not access funding under the lending agreement, are "forward-looking statements," which include statements with respect to the Bank's beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, many of which may be beyond the Bank's control, and which may cause the Bank's actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by the forward-looking statements.
The forward-looking statements may not be realized due to a variety of factors, including, without limitation: legislative and regulatory actions or changes; future economic and market conditions; changes in demand for advances or consolidated obligations of the Bank and/or the FHLBank System; changes in interest rates; political, national and world events; and adverse developments or events affecting or involving other Federal Home Loan Banks, GSEs or the FHLBank System in general. Additional factors that might cause the Bank's results to differ from these forward-looking statements are provided in detail in our filings with the Securities and Exchange Commission, which are available at http://www.sec.gov/ .
You should not place undue reliance on forward-looking statements, since the statements speak only as of the date that they are made. The Bank has no obligation and does not undertake to publicly update, revise or correct any of the forward-looking statements after the date of this announcement, whether as a result of new information, future events or otherwise, except as may be required by law.
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