Federal Home Loan Bank of Chicago Awards $20.6 Million Through Its Affordable Housing Program

CHICAGO, Oct. 31, 2022 /PRNewswire/ -- The Federal Home Loan Bank of Chicago (FHLBank Chicago) today announced that $20.6 million was granted through its Affordable Housing Program (AHP) General Fund to help finance 35 housing projects located in Illinois and Wisconsin. These funds will support the acquisition, rehabilitation, and new construction of over 1,600 housing units. Descriptions of the 2022 AHP award recipients can be viewed here.

"The 35 housing projects supported through our AHP General Fund reflect our continued investment in Illinois and Wisconsin communities," said Katie Naftzger, Vice President, Community Investment Officer, FHLBank Chicago. "This program, now in its 32nd year, subsidizes the development and preservation of affordable rental and owner-occupied housing grants through our member institutions in partnership with developers, community organizations, public housing authorities, tribal governments, and other units of government."

FHLBank Chicago annually contributes 10% of its net earnings to affordable housing programs, including both the AHP General Fund and the Downpayment Plus® (DPP®) Programs. In 2022, more than $12.2 million in forgivable DPP Program grants have been disbursed through FHLBank Chicago's member institutions to assist with down payment and closing costs for eligible households.

Since 1989, FHLBank Chicago has awarded more than $559 million in AHP grants and more than $262 million in DPP funds to help provide housing for low- and moderate-income eligible households.

"The critical need for high-quality, affordable housing is present in rural, small town, and urban communities throughout our District, but current economic pressures provide significant challenges for development," said Michael Ericson, President and CEO, FHLBank Chicago. "Rising interest rates, supply chain disruption and materials costs make the need for affordable housing support even more important to individual beneficiaries, members, and their communities."

For- and not-for-profit developers, units of government, public housing authorities, and tribally designated entities apply annually for AHP grants through an FHLBank Chicago member institution, which includes commercial banks, savings institutions, credit unions, insurance companies, and community development financial institutions in Illinois and Wisconsin.

The mission of the Federal Home Loan Bank of Chicago is to partner with our members in Illinois and Wisconsin to provide them competitively priced funding, a reasonable return on their investment in the Bank, and support for community investment activities. FHLBank Chicago is one of 11 Federal Home Loan Banks chartered by the U.S. Congress in 1932 to promote homeownership. Our members include banks, thrifts, credit unions, insurance companies, and community development financial institutions throughout our District. To learn more about FHLBank Chicago, please visit fhlbc.com or follow @FHLBC on Twitter. "Downpayment Plus" and "DPP" are registered trademarks of the Federal Home Loan Bank of Chicago.

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SOURCE Federal Home Loan Bank of Chicago