Affordable Housing

The Affordable Housing Program (“AHP”) was created by Congress as part of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 and began operations in 1990. The AHP is one of the largest sources of private sector grants for housing and community development in the country. Aggregate AHP Assessments across the FHLBank System were $404 and $362 million on December 31st 2018 and 2019, respectively.

 Under the Federal Home Loan Bank Act, FHLBanks contribute 10% of their net income to affordable housing through the AHP. The AHP is funded by FHLBank earnings and uses no tax dollars. The AHP supports affordable housing for households with incomes at or below 80% of the area median income, including seniors, families with young children, the homeless, persons with disabilities and veterans. With housing supported by the AHP, communities benefit from financial investment, permanent jobs and expanded revitalization efforts.

 The AHP is designed to address local housing needs. It is administered regionally by each FHLBank, working through its respective financial institution members and those members’ community-based partners. To further ensure that AHP-funded developments serve local housing needs, each FHLBank receives guidance from an Affordable Housing Advisory Council—comprised  of community and nonprofit affordable housing and economic development organizations from within the FHLBank’s district.

Who Operates and Oversees AHP, community investment

The FHLBanks are cooperatives that finance housing and economic development for approximately 7,000 member financial institutions to grow their business and their communities. The FHLBanks have been one of the largest sources of funding for community lending in the United States for more than eight decades. Each FHLBank is independently owned by its members and regionally focused. Additionally, each Bank is governed by its own board of directors selected from its district.

Commercial banks, thrifts, credit unions, community development financial institutions and insurance companies are all eligible for membership in their district’s FHLBank. Members range in size from some of the largest financial institutions in the world to community banks with just a single branch.

Each FHLBank is advised by an Advisory Council made up of community and nonprofit affordable housing and economic development organizations from within the FHLBank’s district.

Additional information on all these programs is available from the Community Investment Officer of any FHLBank, or from the Federal Housing Finance Agency (FHFA), 400 7th Street, SW, Washington, DC 20024. Phone: (202) 649-3800. Email:

The FHLBanks’ Affordable Housing Program (AHP) is among the largest private source of grant funds for affordable housing in the United States.