The Federal Home Loan Bank of Chicago (FHLBank Chicago) announced that it has granted $20.6 million via its Affordable Housing Program (AHP) General Fund to help finance 35 housing projects in Illinois and Wisconsin.
According to a press release, the funds will support the acquisition, rehabilitation, and new construction of over 1,600 housing units, including three projects in Milwaukee.
“The 35 housing projects supported through our AHP General Fund reflect our continued investment in Illinois and Wisconsin communities," said Katie Naftzger, vice president and community investment officer of FHLBank Chicago, in the press release. "This program, now in its 32nd year, subsidizes the development and preservation of affordable rental and owner-occupied housing grants through our member institutions in partnership with developers, community organizations, public housing authorities, tribal governments, and other units of government."
In Wisconsin, 20 projects will receive funding.
Milwaukee projects getting funding:
McKinley School Apartments: Associated Bank will provide $585,000 of AHP subsidy to Wisconsin Preservation Fund, Inc. for the acquisition and rehabilitation of 39 units of rental housing.
Edison School Apartments: Cinnaire Lending Corp. will provide $900,000 of AHP subsidy to Lutheran Social Services of Wisconsin and Upper Michigan Inc. for the acquisition and rehabilitation of 75 units of rental housing.
2022 United Community Center & Consortium 1st Time Home Buyer Program: Associated Bank will provide $156,000 of AHP subsidy to United Community Center to assist 24 homeowners with the acquisition of a home in Milwaukee.
For- and not-for-profit developers, units of government, public housing authorities, and tribally designated entities apply annually for AHP grants through an FHLBank Chicago member institution, which includes commercial banks, savings institutions, credit unions, insurance companies, and community development financial institutions in Illinois and Wisconsin.
FHLBank Chicago is a wholesale bank and one of 11 district FHLBanks chartered in 1932 by the U.S. Congress to support mortgage lending and community investment. Each FHLBank operates as an independent organization.
FHLBank Chicago annually contributes 10% of its net earnings to affordable housing programs, including both the AHP General Fund and the Downpayment Plus programs. In 2022, more than $12.2 million in forgivable DPP Program grants have been disbursed through FHLBank Chicago's member institutions to assist with down payment and closing costs for eligible households.
Since 1989, FHLBank Chicago has awarded more than $559 million in AHP grants and more than $262 million in DPP funds to help provide housing for low- and moderate-income eligible households.