Affordable Housing and Community Investment

Since 1989, the FHLBanks have operated specialized affordable housing and community investment programs that provide members with access to grants, long-term advances (loans), and standby letters of credit for targeted housing and economic development.  In addition,  FHLBank members must meet community support standards in order to continue to have access to long-tem advances from the FHLBanks.  For detailed information about specific programs and products, contact the FHLBank directly.

Housing Programs

Economic Development Programs

Community Support Program

There are two key FHLBank housing programs which provide members with grants and other low-cost funds to finance housing.  The Affordable Housing Program (AHP) is a subsidy program that provides grants and interest-rates subsidies on loans to members.  The Community Investment Program (CIP) for housing is a lending program in which member banks and thrifts borrow advances (loans) at a discounted rate of interest or obtain AAA-rated letters of credit from the FHLBanks.  Funds from both of these programs can be used for the purchase, construction or rehabilitation of very low- to moderate-income owner-occupied or rental housing.

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In addition to housing, the Community Investment Program (CIP)  can be used  for economic development in low- to-moderate income neighborhoods.  The FHLBanks also offer long-term advances through other Community Investment Cash Advance (CICA) programs to provide financing for projects that are targeted to certain economic development activities.  Economic development projects include commercial, industrial, manufacturing, social service, infrastructure projects, and public facility projects and activities.

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Members are required to meet standards of community support activities, which they document by submitting a Community Support Statement to the Federal Housing Finance Board approximately every two years to retain access to long-term credit from a FHLBank.  The standards take into account each member’s performance under the Community Reinvestment Act of 1977, and the member’s record of lending to first-time homebuyers.

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