Programs

The Federal Home Loan Banks (FHLBanks) are an essential source of stable, low-cost funds to financial institutions for home mortgage, small business, rural and agricultural loans. With their members, the FHLBanks represent the largest source of home mortgage and community credit.

Gateway to the FHLBanks Websites

Affordable Housing Program and Community Investment Program

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.

Affordable Housing Program (AHP)

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.

Community Investment Program (CIP)

The CIP is a lending program that provides below-market-rate loans that enable banks to extend long-term financing for housing and economic development that benefits low-and moderate-income families and neighborhoods. This program is designed to be a catalyst for economic development because it supports projects that create and preserve jobs and help build infrastructure to support growth. Lenders have used CIP to fund owner-occupied and rental housing, construct roads, bridges, retail stores, sewage treatment plants and provide small business loans. The program is especially appreciated in rural areas where resources are limited.

System Highlights

The AHP is funded with 10% of the FHLBank System’s net income each year.
The AHP is one of the largest private sources of grant funds for affordable housing in the country.
In 2006, a combined total of $295 million was made available for regional housing projects.
Since the program’s inception in 1991, over $2.9 billion dollars in AHP funds have been awarded.
$47 billion in CIP-funded loans have financed over 600,000 housing units and thousands of economic development projects.
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.

AHP Eligibility

AHP grants can be used to fund housing for families or individuals with incomes at or below 80% of the area median.
For AHP funded rental housing, 20% of the units must serve households with incomes at or below 50% of the area median.
Funding is awarded only to financial institution members of the FHLBank System working in partnership with a community sponsor organization.

CIP Eligibility

CIP loans support housing projects that benefit households that earn up to 115% of the area median and for rental housing in which at least 51% of the units are occupied by families with incomes at or below 115% of area median.
CIP loans support business or commercial projects that benefit households earning up to 100% of the median income in urban areas and 115% in rural areas.
Funding is available continuously through a noncompetitive application process.