Comment Detail

Comment

As the nation grapples with rapidly rising home prices and a period of increased high interest rates, it is crucial that the FHLB system increases its attention and resources toward the construction and rehabilitation of for-sale homes.

Existing down payment assistance programs offered by FHLB are significantly inadequate when compared to the burgeoning demand. These programs are increasingly becoming less helpful, failing to address the critical needs of low-income families. It is disappointing to observe that many FHLB Branch AHP scoring rubrics heavily prioritize the production of rental units. This prioritization deprives low-income families of the opportunity to secure affordable permanent housing and build equity.

For years, the production of new for-sale housing has been insufficient to meet the growing demand, causing home prices to skyrocket. This has led to a situation where many middle-income families are now priced out of the housing market. The imbalance between the demand for affordable homes and the supply has created a significant barrier to homeownership, which is a fundamental pathway to financial stability and wealth accumulation for American families.

It is imperative that AHP resources and other voluntary funding mechanisms deployed by FHLBs do much more to facilitate the production of affordable for-sale housing. By doing so, the FHLB system can play a pivotal role in addressing the homeownership gap and ensuring that more families have the opportunity to achieve the dream of owning a home. This shift in focus will not only help stabilize housing markets but also contribute to the economic well-being of communities across the country.

I strongly urge the Federal Housing Finance Agency to take action to enhance the support for the construction and rehabilitation of for-sale homes through FHLB's AHP, thereby promoting affordable homeownership and helping to build stronger, more equitable communities.