Federal Home Loan Banks Anticipate $1 Billion in Support for Affordable Housing and Community Development Initiatives in 2024
07 Mayo 2024 - 10:02AM
The Council of Federal Home Loan Banks, the public voice of the
Federal Home Loan Bank System (FHLBank System), today announced
that the FHLBank System expects to provide approximately $1 billion
in support for affordable housing and community development
initiatives this year. This firmly establishes the FHLBank System
as one of the largest sources of private funding for affordable
housing in the United States.
As part of their mission to provide liquidity and support
affordable housing and community development, each FHLBank is
required by law to contribute a minimum of 10% of income to its
Affordable Housing Program (AHP). Last year, the 11 FHLBanks
voluntarily agreed to contribute a total of 15% of income to
affordable housing and community development initiatives on a go
forward basis. Each FHLBank is either already making additional
voluntary contributions or is in the process of increasing its
voluntary contribution levels The FHLBank System recently reported
combined net income of over $6.6 billion for 2023 with a combined
AHP assessment of $752 million. Including expected voluntary
contributions based on their 2023 financial results, the FHLBanks
expect to provide approximately $1 billion in support for
affordable housing and community development initiatives in
2024.
“We are very proud of the positive impact the FHLBanks have on
communities large and small across the country,” said Ryan Donovan,
President and CEO of the Council of Federal Home Loan Banks. “You
don’t need to look any further than the nearly 100 news stories,
press releases, and media advisories that were published during the
first quarter of this year to get an appreciation for the level of
commitment to affordable housing and community development and how
valuable the FHLBanks and their members are to these efforts in
local communities. We are putting our money to work in so many
important ways, providing resources for veterans housing, homeless
shelters, low- to middle-income borrowers, Native American
communities, and other initiatives. There was at least one news
item nearly every business day during the first quarter
highlighting the impact that FHLBanks and their members are having
in their communities, and we expect this to continue.”
Donovan also noted that the ability of the FHLBanks to have such
a strong impact on affordable housing and community development is
a direct outgrowth of their primary liquidity mission.
“Congress established the FHLBank System to be a reliable
provider of liquidity for its members in all market conditions,” he
said. “That is the core business of the FHLBanks and only by
successfully fulfilling this mission – which they have done for
more than 90 years – are the FHLBanks able to have such a positive
impact for communities across the country.”
FHLBank grants are made available through FHLBank member
financial institutions, and programs are specifically targeted to
meet the affordable housing and community development needs within
each FHLBank district. Grants range from several thousand dollars
to help individuals afford a down payment on a home to more than
one million dollars to support developers of affordable housing
projects. They also support small businesses, local schools,
homeless shelters, local libraries and historical societies, and
various other entities, providing a fundamental safety net to
communities across the country.
Below are a few examples of first quarter news items:
Date |
Headline |
Source |
January 20 |
Affordable housing plan at New Marlborough estate gets a $2
million boost |
The Berkshire Eagle |
February 28 |
Federal Home Loan Bank of Atlanta Awards $8 Million for
Affordable Housing Development
|
WDAF-TV |
March 26 |
Increased Funding Through $39 Million Downpayment Plus®
Grant Programs Provide Affordability Opportunities for More
Illinois and Wisconsin Home Buyers |
Business Wire |
For a full list of first quarter news items, please click
here.
About: The FHLBanks are 11 regionally based,
wholesale suppliers of lendable funds to financial institutions of
all sizes and many types, including community banks, credit unions,
commercial and savings banks, insurance companies, and community
development financial institutions. The FHLBanks are cooperatively
owned by member financial institutions in all 50 states and U.S.
territories. The steady supply of lendable funds from FHLBanks
helps U.S. lenders invest in local needs including housing, jobs,
and economic growth. The Council of FHLBanks represents all 11
FHLBanks.
CONTACT INFORMATIONCouncil of FHLBanksPeter E.
Garuccio202-955-0002 ext. 14pgaruccio@cfhlb.org