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Community Investment Program (CIP)

CIP credit may be used to fund affordable housing development for low- and moderate-income individuals and families and to help develop and revitalize their communities. Members may access CIP credit in the form of advances and letters of credit.


Key Advantages

Key Features

Maximum Term

Varies according to type of credit product

Credit Products Available

Interest Rate/Price

The interest rate on a CIP advance will vary according to credit product and maturity. Interest rates on CIP advances are generally lower than the rates offered under the Bank's regular advance programs, and the prices for CIP letters of credit are generally lower. Members are encouraged to provide favorable rates and terms to borrowers on CIP-qualifying activities in consideration of the preferential rates or prices on CIP credit.

If the Bank determines that a participating member has not complied with the qualifying terms of the program or has not provided acceptable documentation to verify compliance, the Bank may change the interest rate on each outstanding CIP advance, retroactive to its funding date, to the rate in effect on the funding date for a comparable advance under the Bank's regular advance programs. Prices for a CIP letter of credit may be similarly revised.

Eligible Projects and Activities

CIP credit may be used on a passthrough basis to finance specific projects and lending activities that involve the construction, rehabilitation, or acquisition of residential property that meet the eligible use criteria (specified below) and that serve targeted beneficiaries (also specified below).

Eligible Uses:

CIP credit must be used to finance home purchase, construction, or rehabilitation projects or activities by or for low- and moderate-income individuals or families.

CIP credit may be used in a variety of financial transactions, including:

CIP credit may be used for eligible financing originated up to 3 months before the CIP funding date or up to 12 months after the CIP funding date (but before the advance maturity date, if the advance has a term of less than 1 year).

Targeted Beneficiaries:

To qualify for CIP funds, the above eligible uses must serve targeted beneficiaries. These include beneficiaries defined by a targeted area or targeted income levels for individual beneficiaries.

Targeted Areas:

The project or activity is located in one or more of the following targeted areas:

  1. As designated by the U.S. Department of Housing and Urban Development (HUD):
    • Urban Empowerment Zone
    • Urban Enterprise Community
    • Urban Champion Community
  2. As designated by the U.S. Department of Agriculture:
    • Rural Empowerment Zone
    • Rural Enterprise Community
    • Rural Champion Community
  3. An "Indian area," as defined by the Native American Housing Assistance and Self Determination Act
  4. A neighborhood or community with average median incomes at or below 115% of the HUD area median income (AMI)

Targeted Income Levels for Individual Beneficiaries:

  1. The project or activity benefits individuals or families earning up to 115% of the HUD AMI.

Documentation Requirements

To request CIP credit, the member must complete the CIP and ACE Credit Application. Within 12 months of the CIP funding date or, if the advance has a term of less than 1 year, prior to the maturity date of the CIP advance, the member must demonstrate its CIP-eligible lending activity in the full amount of the CIP credit by providing the Bank with a certification that:

  1. The funds were used to benefit targeted beneficiaries (defined by a targeted area or targeted income level for individual beneficiaries) and the use of the funds is consistent with the CIP application, the criteria for eligible projects and activities, and the other terms and conditions of the CIP. The certification must include a description of how the CIP advance (or letter of credit) meets the requirements.
  2. Qualifying loans were originated no more than 3 months before the date of the CIP funding and no later than 12 months following the CIP funding date or, if the advance has a term of less than 1 year, prior to the advance maturity date. If the eligible project was financed up to 3 months prior to the submission of the CIP application, the certifications and accompanying documentation may be submitted with the application.

If the eligible project is receiving funds from another targeted federal housing or economic development program with the same or more restrictive eligibility targets, certification that the project is in compliance with those requirements is sufficient.

Limit Per Member

The Bank has established an aggregate limit on the amount of advances that an individual member may borrow each year under the Bank's CICA credit programs: Advances for Community Enterprise (ACE) and the CIP. The member may borrow up to the maximum amount under just one program or under both programs until it reaches the aggregate limit.

The maximum amount of CICA credit that an individual member may borrow in aggregate each year will depend on the member's total assets as of the previous yearend, as follows:


Total Assets Annual CICA Credit Limit
Up to $20 million $1 million
$20 million to $4 billion 5% of total assets as of previous yearend
$4 billion and over         $200 million

Total Funding Limit

The Bank may limit the total amount of CIP credit to be made available to all members in a calendar year on a first-come, first-served basis. Once the limit is reached, a member may not obtain additional CIP credit even if the member has not reached its individual limit.


All CIP advances and letters of credit must be fully collateralized. CIP-eligible loans may or may not be eligible to be pledged to the Bank as collateral. Please refer to the Bank's Collateral Guide for a detailed description of the Bank's collateral eligibility requirements.

Other Terms and Conditions

Other terms and conditions for CIP credit are the same as for other Bank advances and letters of credit.


Last Modified: April 2018