FHLBs’ affordable housing funding decreased in 2021

The Federal Home Loan Banks awarded approximately $352.4 million in affordable housing program funds in 2021, a 10% decline from the year before, according to a report released today by the Federal Housing Finance Agency. Through the affordable housing funds, more than 32,000 low- to moderate-income households received assistance, including approximately 17,000 very low-income households.

The FHLBs also funded nearly $1.7 billion in housing and economic development advances in 2020 through the Community Investment Program—approximately 44% less than in 2020. The CIP assisted about 8,000 households in 2021, a decrease of approximately 64% from 2020. Funding for the CIP decreased across all FHLBs, with the exception of the Federal Home Loan Bank of San Francisco. Funding for the Community Investment Cash Advance Program totaled $1 billion, about 71% lower than the year prior. CICA funding decreased for all FHLBs between 2020 and 2021 except for the Federal Home Loan Bank of Topeka.

By the end of last year, 68 nondepository community development financial institutions were FHLB members, an increase of four CDFIs. Outstanding advances to nondepository CDFIs fell in 2021, totaling $289.6 million, down from $297 million in 2020