AHP and voluntary initiatives are one of the largest sources of private-sector funding for affordable housing and community development in the country.
Over the past two years the FHLBanks have collectively contributed over $2 billion through these programs, helping support affordable housing opportunities for families and communities across the country.
Created by Congress in 1989 and launched in 1990, the Affordable Housing Program (AHP) expands access to affordable housing across the United States by providing grants that support housing development and help low- and moderate-income families become homeowners.
Recent Program Impact:
- $9+ billion in AHP subsidies distributed since 1990
- 1+ million households supported nationwide
- $718 million in AHP funding expensed in 2025
How the Program Works
AHP funding is distributed exclusively through FHLBank member institutions. Project sponsors must partner with an FHLBank member to access funding.
Each year:
- Every FHLBank contributes at least 10% of its prior year’s net income to AHP
- The FHLBanks collectively must provide at least $100 million annually in program funding
AHP funds must support:
- Homeownership opportunities for households earning ≤ 80% of Area Median Income (AMI)
- Rental housing development where at least 20% of units serve households earning ≤ 50% of AMI
AHP Funding Programs
AHP delivers funding through two complementary programs designed to support both housing development and homebuyers.
The AHP General Fund supports large-scale housing development projects and receives at least 65% of total AHP funding each year.
Funding may be used for:
- Acquisition of housing property
- New construction
- Housing rehabilitation
- Development financing
Projects include:
- Multifamily rental housing
- Owner-occupied housing
- Single-family housing developments
Typical applicants include:
- Housing developers
- Nonprofit organizations
- Housing agencies and community partners
AHP General Fund
Applicants compete for available funding and applications are evaluated using a scoring system, rewarding points for projects that: serve targeted or vulnerable populations; provide supportive services; create economic opportunity; include nonprofit or government sponsorship; and use donated or public land.
Each FHLBank publishes an Affordable Housing Implementation Plan outlining program rules and application timelines.
$
Million
in General Fund grants awarded
housing units created
total housing projects funded
projects aimed at alleviating homelessness funded
AHP Set-Aside programs make up the remaining total amount of AHP funding and are designed to provide direct financial assistance to low- and moderate-income households purchasing or rehabilitating homes.
Funding is provided through FHLBank members and delivered as grants to eligible borrowers.
2025 Impact:
- $257 million in assistance distributed
- 18,000 families supported
- 13,800 first-time homebuyers supported
Program Highlights
- Funding distributed first-come, first-served
- At least one-third reserved for first-time homebuyers
- Entire grant must be passed directly to the household
Common Uses
- Down payment assistance
- Closing cost support
- Home rehabilitation
- Disaster recovery
Affordable Housing Advisory Councils
Each FHLBank maintains an Affordable Housing Advisory Council (AHAC) made up of housing leaders and other community stakeholders from across its district. These councils:
- Provide expertise on regional housing challenges
- Advise FHLBanks on housing and community development strategies
- Help shape district housing priorities
Targeted Community Lending Plans
Every FHLBank develops an annual Targeted Community Lending Plan (TCLP) that identifies housing needs and funding priorities within its district. These plans deliver:
- Analysis of local housing markets and community needs
- Measurable goals for affordable housing investment
- Guidance on how AHP funds are allocated
TCLPs are developed with input from housing partners, community organizations, and FHLBank members and are published publicly each year.
Voluntary Programs
In addition to AHP, the FHLBanks operate voluntary housing and community investment programs tailored to the specific needs of the communities served by their members. These initiatives are designed to expand the reach of housing and local investment efforts and include:
- Direct grant programs
- Additional AHP funding
- Discounted financing or advances
- Targeted housing or economic development initiatives
The FHLBanks currently operate approximately 60 unique programs including those aimed at affordable housing construction, targeted economic development, small businesses, underserved areas, housing counseling, financial education, or disaster relief, among others. The regional structure of the FHLBank System enables each FHLBank to respond directly to local needs with tailored solutions.
In 2025, the Federal Home Loan Banks committed $507 million in voluntary program funding.