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Community Development Advances – CDA

Discounted CDA funding  helps members support economic-development and mixed-use initiatives in their communities.

CDA funds can be used to provide financing for the purchase, construction, rehabilitation, and/or predevelopment financing of:

  • Commercial initiatives, such as shopping centers, office buildings, hotels, and retail stores;

  • Industrial and manufacturing initiatives, such as factories, bakeries, warehouses, and assembly plants;

  • Public-facility initiatives, such as buildings and vehicles for police and fire departments;

  • Social-service initiatives, such as office space for nonprofits, program facilities, hospitals, nursing homes (excluding assisted living facilities), and day-care centers;

  • Public or private infrastructure projects, such as roads, sidewalks, utilities, and sewers.

Eligible Economic Development Initiatives

Project Type Eligibility Requirements
Geographic Beneficiaries Initiative is located in targeted geographic areas such as:

  • A census tract with a median income at or below 100 percent of the area median income in urban areas or 115 percent of the area median income in rural areas

  • Brownfield

  • Champion Community

  • Empowerment Zone

  • Enterprise Community

  • A community affected by the North American Free Trade Agreement (NAFTA) as designated by the Community Adjustment and Investment Act (CAIP)

  • Indian areas

  • Area affected by the closing of a military base

  • State-declared disaster areas (requires approval by the Federal Housing Finance Agency)

  • Federally declared disaster areas
Activity Beneficiaries Project qualifies as a small business, as defined by section 3(a) of the Small Business Act (15 U.S.C. 632(a) and implemented by the Small Business Administration under 13 CFR part 121, or any successor provisions.)

Individual Beneficiaries
  • The initiative creates or retains jobs, other than construction jobs, where the annual salaries for at least 51 percent of the permanent full- and part-time jobs, computed on a FTE basis, are income eligible; or

  • The initiative primarily serves or benefits individuals or families that are income eligible.

'Income eligible' refers to workers, individuals, or households with incomes at or below 100 percent of the area median income if located in an urban area or
115 percent of area median income if located in a rural area

Mixed-Use Initiatives

Project Type Eligibility Requirements
Mixed-Use Members may use CDA funds to provide financing for initiatives that involve a combination of economic development and affordable housing.

To be eligible for such an advance, the economic-development component of the initiative must meet at least one of the eligibility criteria for economic-development initiatives, as shown above. There are no eligibility requirements for the housing portion of a mixed-use initiative.

Eligible Financing Activities

Members may use CDA funds to:

  • Originate eligible loans;

  • Fund eligible loans that were originated up to three months before receiving the CDA;

  • Refinance eligible economic-development initiatives;

  • Make loans to entities that, in turn, make loans for eligible economic-development initiatives; or

  • Purchase a participation interest, or provide financing to participate, in a loan consortium for eligible economic-development initiatives.

Each member will have access to disburse a maximum annual CDA limit of $35 million.

To ensure that each member disburses no more than $35 million in CDA during any one calendar year, each member’s CDA limit and approvals will be managed based on the following calculation:

$35 Million Member Disbursement Limit

  • Less any unexpired approvals with an available for disbursement balance greater than $0

  • Less CDA disbursements during current calendar year

  • Less the total amount requested of any submitted (unapproved) CDA application(s)

The Federal Home Loan Bank of Boston may at any time further limit the total amount of CDA program advances available or limit the amount of CDA program advances available per member.

Application: All applications for Community Development Advances must be submitted online through this web page or Online Banking, the Bank's online account-information and transaction service. The Bank will review applications within 10 business days.

Go to the application

Available Products and Maturities
CDA are available in maturities of one year and longer. Three kinds of advances are always available: Classic, Member-Option, and Amortizing. Classic advances are fixed-rate advances with interest due monthly and principal due at maturity. Member-Option advances are fixed-rate advances that are repayable without fee on specified cancellation dates. Other prepayment structures may also be available. Amortizing advances are fixed-rate advances with monthly payments of interest and principal. Other terms and maturities may be available upon request.

Forward Rate Commitment
To guard against rising interest rates, members may purchase a forward rate commitment to lock in the current rate for disbursement on a future date. Members may call our Money Desk at Office Phone icon 1-800-357-3452 for pricing information on forward rate commitments.

Take-Down and Disbursement
Taking down a CDA is simple. Once the application is approved, the member calls our Money Desk to take down the funds.

Approvals for CDA expire six months from the date of approval. If a member is unable to take down a CDA within the specified take-down period, the member may submit a new application, provided that the funds requested are within their CDA limit availability.

When making a loan using the funds from a CDA, the member's spread on the loan may not exceed its standard spread on similar loans.

Applications approved under the CDA Extra program are subject to the Federal Home Loan Bank of Boston's Beneficiary Eligibility reporting requirement. Members can provide documentation supporting program eligibility at the time of application or after disbursement. Documentation is subject to review and confirmation of compliance by the Federal Home Loan Bank of Boston. Please see Reporting for more information.

Income Eligibility
For loans qualified by income, the household income must be at or below 115 percent of area median income for a rural initiative or 100 percent of area median income for an urban initiative for a family of four based on the income guidelines as published annually by HUD. For loans qualified by income for the location, the census tract in which the property is located must be at or below 115 percent of area median income for a rural initiative or 100 percent of area median income for an urban initiative for the area as determined using for the address or census tract.

Did you know that CDA advances can also be used for bridge loan financing? Adobe PDF icon

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