Federal Home Loan Banks Anticipate $1 Billion in Support for Affordable Housing and Community Development Initiatives in 2024
last updated on Tuesday, May 7, 2024 in Community News
Washington, DC – May 7, 2024 – 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.
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Read complete press release published by the Council of Federal Home Loan Banks 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.
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