Pub. 5 2016 Issue 1
The CommunityBanker 8 C F E A T U R E The Federal Home Loan Banks Affordable Housing Program: Building Communities ongress established the Federal Home Loan Bank System’s Affordable Housing Program (AHP) in 1989, and the Federal Home Loan Banks have distributed more than $4.8 billion in AHP funds since grant awards began in 1990. By contributing 10 percent of annual net income to the AHP each year and part- nering with shareholder institutions to deliver these funds to communities, the FHLBanks have helped create or preserve more than 758,000 affordable rental and homeownership housing units nationally. FHLBank Atlanta’s AHP serves the economic and housing needs of communities by providing shareholders with flexible options for the financing of residential development and rehabilitation initiatives. The Bank delivers AHP funds in two ways: a competitive program (AHP Competitive) 1 for homeownership, rental, and sup- portive housing, and a set-aside program (AHP Set-aside) 2 for ownership and certain rehabilitation projects. Since 1990, FHLBank Atlanta has awarded more than $850 million in AHP subsidies between its homeownership, rental, supportive housing, and rehabilitation products. These funds facilitated more than $11 billion of housing development in communities across the Southeast – a 1:13 ratio of AHP funds to total development financing – and assisted more than 133,244 households. Evolution of AHP Over the last several years, FHLBank Atlanta’s AHP has evolved from a single program to a diverse offering of rental and homeownership products and services that help shareholders achieve community lending compliance and business development objectives. Beginning in 2011, FHLBank Atlanta began a series of expansions of the First-time Home- buyer product to help shareholders reach untapped customer markets and best respond to the emerging credit needs in their communities. Today these products – collectively known as AHP Set-aside products – support first-time homebuyers, mili- tary veterans, homebuyers purchasing foreclosed homes, and homebuyers employed in targeted professions such as police, fire, teacher, education, and health care workers. Supporting Military Communities One of the most significant expansions of the Atlanta Bank’s AHP was the introduction of products and services for veterans and military households. The suite of Veterans Products and Services 3 enable shareholders to provide military veterans and their surviving spouses with home purchase down-payment assistance, home renovation assistance, funds for developers of rental and supportive housing, and financial literacy services, which help veterans achieve lasting financial wellness. Leveraging the suite of Veterans Products and Services, shareholders are able to reach military families, grow their lending business, achieve CRA compliance goals, and build their profile in their communities. Under the Bank’s veteran’s initiative, $35 million of the Bank’s AHP grants have helped facilitate approximately $260 million in real estate develop- ment consisting of 2,545 units of ownership and rental housing for veterans.
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