FHLB system to pump millions into affordable housing projects
Federal Home Loan Banks are bankrolling several million in grants to fund affordable housing projects in the new year. There are currently 12 FHLBs nationwide offering low-cost funding via member banks for affordable housing projects in local neighborhoods. Of those 12, three have announced plans for 2011. The FHLB system does not have a projection of how much money the banks will distribute altogether this year, but in its 20-year history, the entire system has issued $4 billion in funding, according to the organization. The Federal Home Loan Bank of Atlanta just awarded $6 million to fund 20 affordable housing developments in Alabama. The grant is part of the bank's $42.7 million initiative to supply funding to communities in 11 states through its affordable housing program. In addition, the Federal Home Loan Bank of Pittsburgh awarded $1.49 million in grant money to help the city of Philadelphia finalize affordable housing developments for seniors, homeless citizens, recovering alcoholics and victims of domestic violence. Citizens Bank of Pennsylvania and PNC Bank (PNC) are assisting with the funding, which is expected to help pay for the creation of 220 affordable housing units. Meanwhile, in the Midwest, the Federal Home Loan Bank of Des Moines' affordable housing program is offering $1.8 million in grants to help build affordable housing in St. Louis. The awards will be disbursed to community organizations that invest in affordable housing initiatives and homebuyer assistance programs. “FHLB Des Moines works with local members and nonprofit organizations to create better living conditions for families,” said Richard Swanson, president and CEO of the bank, said in a statement. "FHLB Des Moines has distributed $41.9 million to create 9,394 housing units since 1990 in the state of Missouri." Write to Kerri Panchuk.