September 27, 2022

FHFA: Annual Report on Low-Income Housing and Community Development Activities at the FHLBs Released

Today, the Federal Housing Finance Agency (FHFA) released its annual report on the low-income housing and community development activities of the Federal Home Loan Banks (FHLBanks).

The report highlights the FHLBanks’ activities and performance in 2021 through the Affordable Housing Program (AHP), the Community Investment Program (CIP), and the Community Investment Cash Advance Program (CICA). The report also covers Community Development Financial Institution (CDFI) membership in the FHLBank System, the FHLBanks’ affordable housing goals, and their purchases of Acquired Member Assets (AMA). 

The FHLBanks provide loans (referred to as advances) or grants to their members or housing associates under these programs. These funds are then used to assist very low-, low-, and moderate-income households and communities.

“The Federal Home Loan Banks provided more than $2.7 billion in 2021 for targeted economic development and housing advances,” said Director Sandra L. Thompson. “As FHFA begins its comprehensive review of the Federal Home Loan Bank System, we recognize its long-term importance in providing liquidity in the housing finance market and funding for community investment projects.”

Key takeaways of the report include:

​The FHLBanks also support the financing of low-income housing and community development through other activities, including advances to their non-depository CDFI members. CDFIs assist underserved communities by promoting economic investment and affordable housing opportunities, and providing community development financial services and other banking services. At the end of 2021, 68 FHLBank members were non-depository CDFIs.​

Download2021 Low-Income Housing and Community Development

This post was originally published here.