North Carolina Communities Receive Nearly $9 Million from Federal Home Loan Bank of Atlanta

Business Wire, Sept 8, 1998

ATLANTA--(BUSINESS WIRE)--Sept. 8, 1998--

Funds Support Housing and Community Development Through Local Banks

Affordable housing and support for local development are the benefits to North Carolina communities receiving nearly $9 million in 1998 Affordable Housing Program (AHP) and Community Investment Program (CIP) funds awarded by the Federal Home Loan Bank of Atlanta (FHLBA).

"We are very pleased with the support provided to the banks and communities of North Carolina by the Federal Home Loan Bank of Atlanta, and the resulting increase in affordable housing and economic development projects," said Walter B. Jones (NC-R, Third District).

North Carolina currently has 15 projects with a total value of $35,477,379 approved for 1998 funding by the FHLBA. Since 1990 the FHLBA has advanced $7 million in AHP grants for 62 affordable housing projects and nearly $303 million in CIP funds for 71 community development projects sponsored by North Carolina banks and thrifts. In addition, the FHLBA has advanced $3 billion to North Carolina financial institutions to help fund residential mortgage lJoans and related assets.

"These funds are distributed through our member financial institutions to local communities to complete the necessary funding packages for large projects," said FHLBA president and CEO Paul Hill. "Providing wholesale funding to local banks and thrifts to create homes for North Carolina families, and strong neighborhoods through community development is how we serve our membership in the state."

The FHLBA serves 96 banks and thrifts in North Carolina, of which 72 percent are small community institutions with less

than $250 million in assets, and for which funding of large projects would be a challenge without access to FHLBA resources.

To date, FHLBA is providing funds for the listed 1998 AHP projects funded through its members in the following communities: Bay River, First Union and Downtown Housing Improvement Corporation, Bayboro; BAHOP, BB&T of NC, Lumberton and Northwestern Housing Enterprises, Inc., Boone; Lincoln Heights Apartments, BB&T of NC in Raleigh, and Reid Park, First Union and Reid Park Community Development Corporation, both in Charlotte; Habitat Lane, Central Carolina Bank & Trust Company and, Durham County Habitat for Humanity, Durham; Abington and Brook Gardens, BB&T of NC in Raleigh and Project Homestead in Greensboro; Avalon Park, BB&T of NC of Winston-Salem and Ivy Community Center, Lumberton; and Elm Green, Centura Bank of Rocky Mount and East Carolina Community Development Corporation in Newport.

CIP funding is being provided by FHLBA through its members in the following communities: Randolph Bank & Trust Company, Asheboro; The Morris Plan Savings Bank, SSB, Burlington; Cherryville Federal Savings and Loan Association; Cherryville; Central Carolina Bank & Trust Company, Durham; Hillsborough Savings Bank, Inc. SSB, Hillsborough; and Security Savings Bank, SSB, Southport.

AHP 1998 Second Offering

North Carolina communities now have the opportunity to participate in the Affordable Housing Program (AHP) with the second offering for 1998 making more than $8 million available to build housing for working families across the southeast.

AHP is funded with a portion of the Bank's previous year's net earnings, and applications are made to the FHLBA member financial institutions, which submit the projects to the FHLBA for review. AHP applications for the second round of 1998 offerings are sponsored by member institutions, and must be received in the FHLBA's Community Investment Services department by the close of business on September 15, 1998. Final decisions will be announced approximately 60 days later. To receive an application, non-profit organizations, affordable housing developers and North Carolina financial institutions may call 404/888-5321.

The Federal Home Loan Bank of Atlanta is one of 12 district banks in America's Federal Home Loan Bank System. The $43 billion stockholder-owned reserve credit bank provides low-cost financing and other banking services to nearly 1000 financial institutions that offer housing and community development finance to consumers in Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and the District of Columbia.

   CONTACT:  Cookerly & Company, Atlanta
              Laura Layton/Nancy Rogers, 404-816-2037