In addition to providing on-demand liquidity to member financial institutions, the FHLBank System promotes community development through two of the nation's most successful ongoing housing initiatives: the Affordable Housing Program and the Community Investment Program.
The Affordable Housing Program (AHP) encourages innovative lending efforts by FHLBank members supporting homeownership financing programs and the availability of rental housing for low- to moderate-income applicants. FHLBank members can access these subsidies through the AHP Competitive Application Program and the AHP Homeownership set-aside Program. In 2023, the FHLBanks made available approximately $355.2 million in AHP subsidies. Since the program's inception in 1990, the FHLBanks have awarded approximately $9.1 billion through the AHP's competitive and homeownership set-aside programs, assisting more than 1.2 million households.
The Community Investment Program (CIP) and Community Investment Cash Advance (CICA) Program also support the FHLBanks' core mission by providing advances to members to assist the financing of housing or other economic development initiatives to benefit low- and moderate-income households and neighborhoods. In 2023, the FHLBanks provided approximately $4.2 billion in CIP advances for housing projects and approximately $270.7 million in CIP advances for economic development projects. In 2023, the FHLBanks also provided approximately $2.6 billion in CICA advances and approximately $11 million in CICA grants for targeted economic development projects, such as commercial, industrial, and manufacturing projects, social services, and public facilities, that met the requirements for qualifying as one of the specified targeted beneficiaries in the CICA regulation.
In addition to required AHP assessments under the FHLBank Act, an FHLBank's board of directors may elect to make voluntary contributions to its AHP or other community investment programs. In connection with that, and in recognition that additional funding would be beneficial in meeting community needs in affordable housing as well as business and community development, the FHLBanks are either already making additional voluntary contributions, or are in the process of increasing their voluntary contribution levels.
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 20219
(202) 649-3800
FHFAinfo@fhfa.gov
Data Source: Federal Housing Finance Agency Report to Congress 2023