The Community Development Financial Institutions Fund and Federal Housing Finance Agency last week announced the establishment of a working group to increase capital for affordable housing needs from the Federal Home Loan Banks. The announcement came a day after FHFA issued an advisory bulletin that it said would simplify the process of applying for funding for rental projects through the FHLBanks.
According to a statement from the Treasury Department, the working group will brainstorm ways to help more CDFIs access affordable capital from the FHLBanks. Topics for discussion include new programs and approaches for increasing access to capital by non-depository CDFI members; examination of property appraisal and collateral mechanisms and valuation methods; and data sharing on non-depository CDFI activities and performance.
“CDFIs play a key role with FHFA and our regulated entities in efforts to address the nation’s affordable housing challenges, working on the ground in their communities to deliver positive outcomes for underserved households,” FHFA Director Sandra Thompson said.
