Each year, the Federal Housing Finance Board (Finance Board) allocates the elective directorships of each Federal Home Loan Bank’s (Bank’s) board of directors among the states in that Bank’s district. Three principal factors determine the allocation of elective directorships. First, the directorships are allocated on the amount of Bank stock owned by the member institutions in each state in the Bank’s district. Second, additional directorships may be allocated to certain states under a "grandfather provision," which requires each state to have at least as many directorships as it had in 1960. Third, the Federal Home Loan Bank Act authorizes the Finance Board, at its discretion, to increase the size of the board for any Bank whose district comprises five or more states.
Today’s allocation of elective directorships will preserve the current number of directorships at nine of the 12 Banks. The boards at the two of the Banks – the Boston and San Francisco Banks – will increase by two and one elective directorship, respectively. The board at one Bank – the Topeka Bank – will decrease by one elective directorship.
The Federal Housing Finance Board is a non-appropriated funds agency that assesses the Federal Home Loan Banks for the costs of its operations.