Nearly $49.5 million in Affordable Housing Program subsidy will benefit affordable housing development in Kentucky, Ohio, Tennessee and beyond
CINCINNATI, Nov. 21, 2024 /PRNewswire/ — Federal Home Loan Bank of Cincinnati President and CEO Andrew S. Howell announced the recipients of 56 Affordable Housing Program (AHP) grants totaling over $49.5 million—marking FHLB Cincinnati’s largest grant announcement in AHP history. Awarded to 24 member financial institutions, grant funds will be used to help create 2,743 units of affordable housing benefiting residents throughout Kentucky, Ohio, Tennessee and beyond.
“Our members and the affordable housing organizations they support are facing prolonged challenges in developing and rehabilitating affordable housing throughout our region,” Mr. Howell said. “While the current housing crisis will require multi-faceted solutions from funding sources across the country, we are proud to do our part through our largest ever announcement of Affordable Housing Program grants. Since the program’s inception, more than $686 million has been disbursed through our members to benefit local nonprofit organizations to help build and rehabilitate housing in the communities we serve.”
FHLB Cincinnati allocates 10 percent of its net income annually to the AHP, which makes housing more affordable for households at or below 80 percent of the area median income. Subsidy is awarded to members through an annual AHP competitive offering and through the Welcome Home Program’s down payment assistance grants. This 10 percent allocation was enhanced in 2024 by an additional $40.5 million in voluntary funds which went in part to fund the AHP through the down payment assistance program. Additional voluntary funds have supported home rehabilitation for low-income homeowners, disaster reconstruction and first-generation home ownership.
Since the first awards in 1990, the FHLB has disbursed more than $686 million toward nearly 93,000 units of affordable housing through the competitive AHP and Welcome Home Program. These programs have enabled thousands of families to access decent, affordable housing.
For more information on specific awards and details of AHP, visit the FHLB Cincinnati website at www.fhlbcin.com.
About the FHLB
The FHLB is a AA+ rated wholesale cooperative bank owned by 607 member financial institutions, including commercial banks, thrifts, credit unions, insurance companies and community development financial institutions in Kentucky, Ohio and Tennessee. The FHLB provides members access to products and services (primarily Advances, which are a readily available, low-cost source of funds, purchases of certain mortgage loans from members, and issuance of Letters of Credit to members) and a competitive return through quarterly dividends on their capital investment in the FHLB. The FHLB funds these products and services by raising private-sector capital from member-stockholders and, with the other Federal Home Loan Banks (FHLBanks) in the FHLBank System, issuing high-quality debt in the global capital markets. The FHLB also funds community investment programs that help its members create affordable housing and promote community economic development.
SOURCE Federal Home Loan Bank of Cincinnati