The 11 Federal Home Loan Banks approved approximately $446.9 million in total affordable housing program funds in 2023, representing a 67% increase over the year before, the Federal Housing Finance Agency said today in its annual report on FHLBanks’ targeted mission activities. The funding assisted more than 33,000 low- or moderate-income households, including over 17,000 very low-income households.
Each FHLBanks is required by law to contribute a minimum of 10% of net income to its affordable housing program, or AHP. (The banks agreed earlier this year to voluntarily raise that contribution to 15%.) Significant earnings improvement at the FHLBanks in 2022 led to the statutory and total AHP contributions both growing for the first time since 2018, according to the report.
The FHLBanks also support the financing of low-income housing and community development through other activities, including through advances to their non-depository community development financial institution members, the report said. At the end of 2023, 71 FHLBank members were non-depository CDFIs, one more than in 2022. The FHLBanks’ outstanding advances to these CDFIs at the end of 2023 were $336.2 million, an increase from $272.4 million at the end of 2022.
