Urban Development Advance (UDA)

The Urban Development Advance (UDA) provides financing for economic development projects in urban areas that benefit individuals or families with incomes at or below 100% of the area median income. An urban area is defined as a unit of general local government with a population of more than 25,000.

UDA funding is a non-competitive source of low-priced, medium-term funds that are available in the form of advances to Federal Home Loan Bank of New York (FHLBNY) member community lenders. As part of the suite of Community Lending Programs, UDA Advances are priced below regular FHLBNY advance rates. UDA Advances may be used to finance commercial and economic development projects that meet any of the geographic, individual, or small business criteria listed below:

Geographic Criteria:

  1. Located in a neighborhood with a median income at or below 100% of the area median income;
  2. Located in an urban Champion Community, or an urban Empowerment Zone, or an urban Enterprise Community, as designated by the Secretary of HUD;
  3. Located in a federal or state declared disaster area;
  4. Eligible for a federal Brownfield Tax Credit;
  5. Located in an Indian area, as defined by the Native American Housing Assistance and Self Determination Act of 1996;
  6. Located in an area affected by a federal military base closing or realignment; and/or
  7. Located in an area identified as a designated community under the Community Adjustment and Investment Program.

Individual Criteria:

  1. The annual salaries for at least 51% of the permanent full- and part-time jobs, computed on a full-time equivalent basis, created or retained by the project, other than construction jobs, are at or below 100% of the median income;
  2. At least 51% of the families who otherwise benefit from (other than through employment) or are provided services by the project have incomes at or below 100% of the median income.

Small Business Criteria:

  • Projects that qualify as small businesses as defined by section 3(a) of the Small Business Act and implemented by the Small Business Administration under 13 CFR Part 121.

Examples of commercial and economic projects that qualify for UDA funding:

  • Small business loans
  • Daycare centers
  • Manufacturing facilities
  • Retail stores
  • Mixed-use buildings
  • Healthcare facilities
  • Educational facilities
  • Warehouse facilities
  • Grocery stores
  • Equipment purchases for commercial expansion 
  • Community services, such as fire stations and trucks
  • Acquisition, construction, refinancing or rehabilitation
  • Construction or rehabilitation of public or private infrastructure, such as roads, utilities, and sewers
  • Debt refinancing or consolidation for commercial business

UDA Success Stories

New Credit Union in Rensselaer, New York
Member: Community Resource Federal Credit Union
Project Name: New Branch of Community Resource Federal Credit Union

Expansion of Family-owned Business
Member: Tioga State Bank
Project Name: Bates, Troy, Inc.

› Other Success Stories