Financial Institutions Housing Opportunity Pool (FIHOP) is a development of the Mississippi Home Corporation (MHC). Our mission is to fund developers of multi-family housing to utilize low-income housing tax credits.
Prior to our formation, loans made for CRA credits were typically funded by out-of-state banks. Our program brings Community Reinvestment Act (CRA) investment opportunities back to the Mississippi banking community.
We exist to further MHC’s affordable housing mission which is to enhance Mississippi’s long-term economic viability by financing safe, decent, affordable housing and helping working families build wealth. FIHOP is a 501 (c) 3 Mississippi Corporation registered with the State of Mississippi as a Charitable Organization.
We are governed by a Board of Directors. Our loan committee is made up of 9 members. We are currently administered by MHC until FIHOP can meet its own administrative needs.
FIHOP furthers MHC’s affordable housing mission: to enhance Mississippi’s long-term economic viability by financing safe, decent, affordable housing and helping working families build wealth.
What FIHOP Does
FIHOP meets the permanent loan needs of Tax Credit Developers and the CRA Investment compliance needs of our members. FIHOP does not fund construction loans, as it does not want to compete with local banks. We require 90% occupancy combined with a 1.20 Debt Coverage Ratio for three months prior to closing.
FIHOP has closed in excess of $19 Million dollars and has an additional $1.85 Million dollars in commitments outstanding. Of the $27,636,000.00 in total commitments granted to FIHOP by its seventeen members, $20.3 Million dollars is remaining and available for commitments.
FIHOP Membership Benefits
Our present portfolio is returning a minimum 6.5% rate to our members. MHC is also earning a .25 -.5% servicing and administration fee. In addition, our portfolio has achieved a 100% pay rate for its entire 11-year history of loans in service. All four regulatory agencies were instrumental in the formation of FIHOP and have encouraged member participation throughout the State.
Financial Institutions that participate within FIHOP are pleased with the statewide CRA credit that is received. Furthermore, they are satisfied by the minimal Loan to Value Ratios (typically less than 35%) associated with permanent first mortgage loans.
FIHOP Membership Requirements
An initial administrative fee (1% of total commitment) is charged to new members of FIHOP, not to exceed $10,000.00.
Member must commit at least $250,000 to the pool, but some of our members have as much as $3,000,000 committed. MHC endorses the program by funding up to 10% of each loan made by FIHOP up to a total commitment of $3,000,000. Currently at $27,636,000 dollars in member commitments, the objective of the FIHOP Board is to increase participation to more than $30 million.