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FHLBank Chicago Awards $25 Million to Finance 5,000 Affordable Housing Units
By James Comtois
The Federal Home Loan Bank of Chicago, through its Affordable Housing Program competitive grants process, awarded more than $25 million in 2006 to help finance more than 5,000 affordable housing units located primarily in Illinois and Wisconsin.
FHLB Chicago's AHP is a subsidy fund designed to assist in the development of affordable housing for low- and moderate-income households. Each year, the bank allocates 10% of its prior year's earnings for affordable housing projects in the competitive grants program and the non-competitive homeownership set-aside program, the Downpayment Plus Program.
Since beginning the AHP in 1990, the bank has awarded approximately $251 million in grants to support almost 60,000 units of affordable housing.
"Our Affordable Housing Program is a source of great pride and satisfaction since it directly meets the housing needs of literally thousands of families each year," said Mike Thomas, president and chief executive of FHLB Chicago.
Non-profit groups, for-profit developers and public entities apply for the competitive AHP grants through one of the bank's member institutions, comprising more than 870 commercial banks, thrifts, credit unions and insurance companies in Illinois and Wisconsin.
The 2006 AHP funding will help to create or rehabilitate approximately 5,400 housing units, more than half of which will be reserved for very-low income households earning less than 50% of the area median income where they are located.
Many projects will help first-time homebuyers, seniors and people with disabilities.
Eldridge Edgecombe, senior vice president and community investment officer of FHLB Chicago said in a statement, "Affordable housing continues to be a concern in America, in both urban and rural areas. Our funding helps facilitate partnerships that build, buy, or renovate homes and apartment units for families who might not otherwise have the opportunity to live in a quality, affordable home."
FHLB Chicago is an $89 billion wholesale bank and government sponsored enterprise that provides housing finance to more than 870 member commercial banks, savings institutions, credit unions and insurance companies located in the 7th Federal Home Loan Bank District of Illinois and Wisconsin.
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