Facts at a Glance: FHLBanks (con’t)

Affordable Housing Program

• Since the inception of the Affordable Housing Program (AHP), the Federal Home Loan Banks have committed over $2.9 billion dollars to help create 575,000 housing units. In 2006, FHLBanks contributed $295 million to affordable housing initiatives.

• Since 1989, the FHLBanks have annually contributed 10 percent of their income or $100 million, which ever is greater, to the AHP.

• The AHP is one of the largest private sources of grant funds for affordable housing in the country.

• The FHLBank System is the largest corporate contributor to Habitat for Humanity International: one in four Habitat homes in the U.S. has received AHP funds.

• The affordable housing and economic development programs of the twelve FHLBanks consist of grants and low-interest loans to member financial institutions to use to provide financing for economic development and housing activities.

• FHLBank grants and low-interest loans are catalysts for the construction and revitalization of housing targeted to people with low and moderate incomes. AHP-funded projects serve a wide range of neighborhood needs: many are designed for seniors, the disabled, homeless families, first-time homeowners and others with limited resources.

• The AHP is a competitive program that provides grants twice a year through financial institutions for investment in low- or moderate-income housing initiatives. Member banks partner with developers and community organizations to finance the purchase, construction, or rehabilitation of owner-occupied or rental housing. Grants can also be used to lower the interest rate on loans or cover down payment and closing costs. The program is flexible so that AHP funds can be used in combination with other programs and funding sources, ensuring a project’s feasibility. To make certain that AHP-funded projects reflect local housing needs, each FHLBank is advised by a 15-member Affordable Housing Advisory Council for guidance on regional housing and community development issues.

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