Disaster Relief Funding

Disaster Relief Funding (DRF) FAQs

How much in funding is available under the DRF Program?

In an effort to support the communities we serve, the Federal Home Loan Bank of New York (FHLBNY) has extended $1 billion in Disaster Relief Funding (DRF) to cover communities affected by the current COVID-19 pandemic, recent earthquakes in Puerto Rico, and past Hurricanes Irma and Maria in the Caribbean.

What are the eligibility requirements?

Eligible member lending activity originated after the disaster declaration and within 90 days of receiving funding may be submitted as DRF support for advances related to financing of housing or economic development activities in communities located in a FEMA-designated disaster area.

Housing activities include the purchase, construction, rehabilitation or refinancing of, or predevelopment financing for individual owner-occupied housing units, projects involving multiple units of owner-occupied housing, rental housing, or manufactured housing parks, as defined in the CICA Regulation.

Economic development activities include commercial, industrial, manufacturing, social service, public or private facility and infrastructure activities, such as roads, utilities, and sewers.

Economic recovery efforts include immediate and long-term small business relief measures. DRF will support members in liquidity needs, shoring up balance sheets, and allowing them to offer continuous credit facilities.

Commercial and/or Mixed-Use eligibility is based on location criteria (FEMA-designated disaster areas). Eligibility for housing activities is based on existing CIP eligibility criteria.

What are the funding limits for members?

DRF advances are initially limited to $25 million per member per month with an overall program limit of $50 million per member. All FHLBNY credit conditions apply.

What are the term limits for advances?

The minimum advance term is 30 days.

Are there any location limits as to what projects will qualify for funding?

All projects must be within the confines of the FHLBNY District (NY, NJ, PR and USVI) to be deemed eligible.

What products can be used with DRF funds?

Members may use fixed or floating rate advances as well as amortizing advances. Members may not use symmetrical prepayment advances or structured products. Please call the Member Services Desk at (212) 441-6600 or (800) 546-5101, Option 1, for more specific questions.

Where can I find rates for less than 1 year?

Please contact the Member Services Desk at (212) 441-6600 or (800) 546-5101, Option 1, for live rate indications for less than 1 year.

When does the lookback period begin for areas declared a disaster?

For the DRF programs, qualified lending activities include loans with a settlement date on or after the FEMA declaration date for the particular disaster and within 90 days of the issued advance. For some guidance, FEMA declared the following areas disasters for COVID:
NY – 3/20/2020
NJ – 3/25/2020
PR – 3/27/2020
USVI – 4/2/2020
Additionally, DRF can also be used for Hurricanes Irma/Maria as well as the 2020 PR Earthquakes, which have their own respective declarations.

What is the procedure for obtaining a commitment and the turnaround time?

The process is the same as the CLP programs with a turnaround time on a first-come, first-serve basis as workflows permit.

Can a small business or non-profit receive the SBRG while obtaining DRF funds?

Yes.

Can I use PPP loans as qualifying lending activity for funding?

Yes lending under the SBA’s PPP facility may qualify under the guidelines of the program provided that the loans were made to “for profit” entities and meet the SBA’s size parameters of a small business.

How will we know when funds are exhausted?

FHLBNY will send frequent notifications to its members about updates to the program. You may also continue to check the FHLBNY website for more information about the DRF program.

Who can I contact with questions about the program?

If members have any questions about either of the DR programs, please reach out to the CI Team directly:

For SBRG – [email protected]

For CLP/DRF – [email protected] or [email protected]

Members may also contact their relationship manager at (212) 441-6700, or the Member Services Desk at (212) 441-6600 or (800) 546-5101, Option 1.

Disaster Relief Funding