The Federal Home Loan Bank (FLHBank) of Indianapolis says it has awarded of nearly $6.2 million in Affordable Housing Program (AHP) grants to 15 Indiana projects that will create an additional 421 units of affordable housing within the Indiana. (The bank also serves Michigan.)
Each AHP project pairs an FHLBank Indianapolis member financial institution with nonprofits, economic development groups, or developers to fund the acquisition, construction, or rehabilitation of properties for use as affordable housing, the bank says in a news release.
“Our members work closely with the communities they know best to support local affordable housing,” said MaryBeth Wott, FHLBank Indianapolis’ community investment officer. “Whether it’s in South Bend or Richmond or Evansville in Indiana, or in Central Lake or Grand Rapids or Pontiac in Michigan, these financial institutions work with community leaders to identify and act on local affordable housing needs.”
For 2017, almost all of those partnerships are with area nonprofits with their fingers on the pulse of local affordable housing needs. In Indianapolis, for example, FHLBank Indianapolis member Indianapolis Neighborhood Housing Partnership partnered with the John H. Boner Community Center and was awarded a $500,000 AHP grant to support the development of 36 affordable rental units in the IndyEast Promise Zone.
Each year, FHLBank Indianapolis members – banks, credit unions, and insurers throughout Indiana and Michigan – partner with local nonprofits, economic development groups, or developers to compete for AHP grants to help fund the acquisition, construction, or rehabilitation of properties for use as affordable rental or ownership.
Funds are made available through an annual competitive AHP application process which provides grant money (up to $ 500,000) for low-income, owner-occupied, or rental housing projects. These awards support a multitude of affordable housing solutions for veterans, people with disabilities, young adults transitioning out of the foster care system, and many others.
Each year, FHLBank Indianapolis sets aside 10 percent of its net earnings to fund AHP and other homeownership-related grant programs with its members.
The Federal Home Loan Bank of Indianapolis (FHLBank Indianapolis) is one of 11 regional banks that make up the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to ensure access to low-cost funding for their member financial institutions. FHLBanks are privately capitalized and funded, and receive no Congressional appropriations. FHLBank Indianapolis is owned by its Indiana and Michigan financial institution members, which include commercial banks, credit unions, insurance companies, and savings banks.