FOR IMMEDIATE RELEASE
March 6, 2001

CONTACT: Kathleen O'ROURKE (VHDA)
804-343-5520, (cell) 804-402-4337
e-mail: katie.orourke@vhda.com or

Asia Grimes (FHLBA) 404-888-8037
e-mail: akimble@fhlbatl.com

ATLANTA, Ga. (March 6, 2001) – The Federal Home Loan Bank of Atlanta (FHLBA), a leading provider of financing to increase homeownership, affordable rental housing and community economic development throughout the South, today announced it has purchased nearly $200 million in taxable pass-through securities issued by the Virginia Housing Development Authority (VHDA). FHLBA worked closely with VHDA to help define the requirements of this new innovative mortgage pass-through financing structure.

VHDA will invest proceeds from the $181.7 million taxable issue to develop affordable housing for approximately 1,300 low and moderate-income families in Virginia. FHLBA member SunTrust Bank served as underwriter for the transaction.

Susan Dewey, Executive Director of VHDA, said: "The Bank's recent purchase of our mortgage pass-through securities supported a form of financing and enabled us to continue our FLEX Alt loan program, which is 100 percent funded from taxable sources, with no additional subsidy. We are pleased to work in partnership with the Federal Home Loan Bank of Atlanta."

Gary Glass, Senior Executive Vice President and Chief Financial Officer of the Bank, said: "VHDA is known nationwide for its creative approach to housing finance. This innovative financing structure will enable VHDA to continue to fulfill Virginia's housing finance needs."

FHLBA already provides substantial resources to Virginia homebuyers through its conventional advance (loan) and other programs.