The FHLBank System is unique among government-sponsored enterprises due to its public policy responsibilities and its role in housing finance. In addition to providing on-demand liquidity to member financial institutions, the System also delivers on its commitment to promote community development through two of the nation's most successful ongoing housing initiatives: the Affordable Housing Program and the Community Investment Program, as well as through the Community Investment Cash Advance Program. In fact, the Affordable Housing Program was honored by the National Housing Conference in 2010 with its highest award.
The Affordable Housing Program (AHP) is designed to encourage the creation of innovative lending efforts by members to increase affordable housing stock. The FHLBanks contribute ten percent of their annual net earnings to the AHP, and AHP funds subsidize the interest rates for loans to member financial institutions and provide direct subsidies to members making loans for the purchase, construction, or rehabilitation of very low- to moderate-income owner-occupied or rental housing. Since 1990, AHP funds have supported more than 778,000 households, ranging from rental and owner-occupied housing in both urban and rural areas, to special needs households, including individuals with disabilities and the elderly. Through 2015, the Banks have awarded over $5.1 billion through the AHP, with more than half of the households supported qualifying as very low-income.
Through the Community Investment Program (CIP), the Banks fund advances or letters of credit for economic development targeted for lower-income communities. Between 1990 and 2015, the CIP has funded more than $56 billion in housing advances and approximately $7.5 billion in economic development advances, benefiting over 839,000 housing units, as well as community development projects in very low-, low-, or moderate-income areas.
The FHLBanks can also choose to participate in the Community Investment Cash Advance (CICA) Program. Through the CICA Program, Banks provide advances, letters of credit, or grants for economic development targeted for lower-income communities. From 1990 to 2015, the Banks funded over $23 billion in CICA economic development advances.
Here are some facts about FHLBank affordable housing programs:
Additional information on these programs is available from the Community Investment Officer at any FHLBank, or from the Federal Housing Finance Agency, 400 7th Street, SW, Washington, DC 20024. Phone: (202) 649-3800. Email: FHFAinfo@fhfa.gov.
Source: Federal Housing Finance Agency