Disaster Relief Funding

In response to the damage done to many local communities due to Hurricane Sandy, the FHLBNY has committed to provide up to $1 billion in disaster relief loans to begin the process of rebuilding communities designated by FEMA as disaster areas.  Funding is issued through our Community Lending Program (CLP) for members to use as immediate gap financing while insurance settlements are being worked out. Note: The FHLBNY does not offer funding directly to homeowners, please contact one of our members to discuss loans for disaster relief funding.

About the Funds:

• Feature the lowest FHLBNY advance rates available on a daily basis
• No cost commitment — there are no fees associated with non-drawdown of funds
• May be used for a broad range of of economic development lending activities related to disaster recovery
• Can be amortizing, bullet, or custom-structured
• Reduced 1-year minimum term requirement to 30 days for economic development lending
• Commitments issued in increments of up to $50 million, with a cap per member of $100 million (extensions beyond the cap may be granted on a case-by-case basis)
• Available until the $1 billion commitment is met or the FEMA designation expires
• Eligible lending activity includes loans closed in a FEMA designated area after October 30, 2012

Flexibility and speed are crucial in the initial stages of recovery from disaster. Members are immediately eligible for discounted advance rates* if they are providing financing in FEMA-designated areas. The $1 billion CLP commitment can be used for small business and economic development lending in FEMA-designated disaster areas and bridge financing, regardless of income status. The funds can also be used for residential lending activity for households whose incomes are at or below 115 percent of the area median income. These low-cost loans can be used by the FHLBNY’s member-lenders to support critical disaster relief financial activities, and meet the short-, medium-, and long-term funding needs of affected communities in New Jersey and New York.

• In New York:
  Bronx County, Kings County, Nassau County, New York County, Queens County, Richmond County, Rockland County, Suffolk County and Westchester County.
  
  Incident: Hurricane Sandy (10/27/12)
  

• In New Jersey:
  Atlantic County, Bergen County, Burlington County, Camden County, Cape May County, Cumberland County, Essex County, Gloucester County, Hudson County, Hunterdon County, Mercer County, Middlesex County, Monmouth County, Morris County, Ocean County, Passaic County, Salem County, Somerset County, Sussex County, Union County and Warren County.
  
  Incident: Hurricane Sandy (10/27/12)

Some examples of eligible uses of CLP funds are:

• For the acquisition, construction, refinancing, or restoration of branches, and small businesses; and
• Commercial/economic development

*All requirements under the regular advances program are also applicable for CLP funding. Refer to the Member Products Guide for more information.