| Housing Programs
The Affordable Housing Program (AHP) subsidizes the cost of owner-occupied housing for individuals and families with incomes at or below 80 percent of the area median income, and rental housing in which at least 20 percent of the units are reserved for households with incomes at or below 50 percent of AMI. The subsidy may be in the form of a grant or a below-cost or subsidized interest rate on an advance. AHP funds are primarily available through a competitive application program at each of the FHLBanks.
In the competitive program, members submit applications on behalf of one or more sponsors of eligible housing projects. Projects must meet certain eligibility requirements and score successfully in order to obtain funding under the AHP competitive application program. AHP funds are also awarded through the homeownership set-aside program. Under this program, a FHLBank may set aside up to the greater of $4.5 million or 35 percent of its AHP funds each year to assist low and moderate income households purchase homes, provided that at least one-third of the Bank’s set-aside allocation is made available to assist first-time homebuyers. Members obtain the AHP set-aside funds from the FHLBank and then use them as grants to eligible households. Set-aside funds may be used for down-payment, closing cost, counseling or rehabilitation assistance in connection with the household's purchase or rehabilitation of an owner-occupied unit. Each Bank sets its own maximum grant amount, which may not exceed $15,000 per household. All 12 of the FHLBanks have AHP homeownership set-aside programs.
Click on the following links to obtain additional information about the Affordable Housing Program at the FHLBanks.
The Community Investment Program (CIP) for housing provides funding in the form of advances to members with a discounted interest rate. An advance under the CIP is offered to a member at the FHLBank’s cost of funds plus reasonable administrative costs. Members use CIP advances to fund the purchase, construction, rehabilitation, refinancing or predevelopment financing of owner-occupied and rental housing for households with incomes at or below 115% or the area median income.
Members may use the proceeds of CIP funding to finance housing directly by making or purchasing mortgages or indirectly by purchasing eligible mortgage securities, mortgage-revenue bonds and low-income housing tax credits or by lending to other lenders to make eligible loans. The FHLBanks discount the interest rates on CIP advances and may require the member to pass through this discount to its own borrowers.
Click on the following links to obtain additional information about Community Investment Programs at the FHLBanks.
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