FHFA: Proposed Rule Amending Federal Home Loan Banks’ Affordable Housing Program Regulation Issued

The Federal Housing Finance Agency (FHFA) is seeking comments on proposed amendments to its regulation on the Federal Home Loan Banks’ (FHLBanks) Affordable Housing Program (AHP).

The proposed amendments would authorize the FHLBanks to redesign their project selection systems and create special targeted funds, which would allow the FHLBanks more flexibility to align their AHP funds with the distinct affordable housing needs in their districts.  The amendments would also make the program easier to use, both for the FHLBanks and award recipients, by reducing regulatory requirements that are redundant with other federal programs.  In 2017 the FHLBanks’ net income generated $384 million in AHP funding, and the average contribution for the last five years has exceeded $300 million per year.

“The FHLBanks’ Affordable Housing Program is a continuing success story.  Since it began in 1990, the program has awarded funds to support over one million units of housing affordable to low-income homebuyers and renters,” said FHFA Director Melvin L. Watt.  “We look forward to stakeholder comments that will enable us to continue to build on the AHP’s success.”

FHFA invites interested parties to submit comments on the proposed rule via FHFA.gov within 60 days of publication in the Federal Register or via mail, FHFA, Eighth Floor, 400 Seventh Street, SW, Washington, DC  20219.  Additionally, FHFA will host a webinar at 2 p.m. EDT, March 27 to explain the proposed rule and answer questions.  Register here for the webinar.

Link to Proposed Rule (text as sent to Federal Register)

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