Last month, fifteen housing projects across the state of Illinois were granted awards from the Federal Home Loan Bank of Chicago (FHLBank Chicago) through its Affordable Housing Program (AHP) General Fund. Through this fund, FHL Bank Chicago’s member institutions partner with for- and not-for-profit developers, community organizations, units of government, public housing authorities, and tribal governments to apply for annual grants to subsidize the acquisition, new construction, and/or rehabilitation of affordable rental or owner-occupied housing. This subsidy is provided as a forgivable grant from the Federal Home Loan Bank of Chicago, through a member, to a project sponsor.
These awards will help support two FHLBank Chicago member institutions in Chicago as they partner with local organizations to develop and expand the supply of high-quality and affordable housing in the communities they serve. FHL Bank Chicago has been committed to supporting its member institutions in providing high-quality, affordable housing since 1989 and is committed to continuing that support today. 2021 AHP award recipients include projects such as Homan Square Permanent Supportive Housing in Chicago, as well as suburban projects, such as Torrence Place in Lansing. A full listing of 2021 recipients can be found here.
The Affordable Housing Program provides a maximum of $900,000 or 75% of the total project cost. The funds must be used toward either the acquisition, construction, and/or rehabilitation of owner-occupied housing for households with incomes at or below 80% of area median income; or to finance the acquisition, construction, and/or rehabilitation of rental housing for projects where at least 20% of the units must be occupied by, and affordable to, households with incomes at or below 50% of area median income. This initiative has the capacity to increase the portfolio of affordable housing units within the state of Illinois. The bank member, as well as the project sponsor, must complete the application online using AHP Online, FHL Bank’s Chicago web-based project management system. Applications are reviewed annually and the program policy and forms can be found here. Potential applicants interested in learning more can contact the FHLBank Chicago Community Investment department at 312-565-5824 or firstname.lastname@example.org.
In addition to providing annualized funding for Affordable Housing Programs, FHLBank Chicago also contributes annually to both the AHP General Fund and the Downpayment Plus® (DPP®) Programs, a program that offers Federal Home Loan Bank of Chicago members accessible down payment and closing cost assistance to help their income-eligible customers achieve homeownership.
Chartered in 1932 by the U.S. Congress to support mortgage lendings and community investment, FHLBank Chicago is one of 11 district wholesale FHLBanks. Each FHLBank operates as an independent organization and is governed by a board of directors elected by its member institutions. As a cooperative, FHL Bank provides liquidity to member banks, credit unions, insurance companies, and community development financial institutions located in Illinois and Wisconsin, focusing on the distinct needs of their individual businesses and communities.
To learn more about FHLBank Chicago and its financial services, please visit https://www.fhlbc.com/.
Chante’ Gamby is a writer passionate about social justice and empowering others to live their healthiest lives. You can follow her on Facebook at Fringefam, Instagram@fringegram, or on her website, www.fringefam.com.