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The Federal Home Loan Banks in America FHLBank Topeka

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The Federal Home Loan Banks
  in America’s Communities
            On November 28, 2006,
     the Federal Home Loan Banks convened a
    conference in Washington, D.C., focused on
    sharing solutions to the challenges America
  faces today in affordable housing and economic
development. Approximately 100 staff representatives
   of the U.S. House and Senate, key nonprofits,
   strategic partners and FHLBank officers from
 around the country attended the all-day summit.
While it is true that the national economy has experienced strong growth recently, it
is also true that the gap between rich and poor continues to grow, that the ability of
the working poor to afford decent housing is declining and that the benefits of robust
economic development have not touched many areas of the country. At the Pathways
event, we sought to understand why it remains difficult in America to ensure that all
citizens have a safe, decent, affordable place to live and the opportunity to earn a living
wage through meaningful work. In an effort to suggest solutions to this dilemma, we
invited knowledgeable speakers who shed light on what we can do to expand the supply
of affordable housing and improve the climate for economic development.


The gathering featured observations and recommendations from a wide variety of
speakers, including former U.S. Sen. John Breaux (D-La.), who said the prospects for
bipartisan cooperation in the 110th Congress appear strong; former Indianapolis Mayor
William Hudnut, now with the Urban Land Institute, who urged even greater acceptance
of green building and housing rehabilitation; Suzanne Morse of the Pew Partnership             Since their creation by Congress in 1932, the FHLBanks’ mission has been to enhance
for Civic Change, who laid out the elements of success for growth and prosperity in            the quality of life for the citizens of this country. Our 3,000 employees manage $1 trillion
rural communities; Luis Cortés Jr., president of Esperanza USA, a coalition of churches,       in assets, in partnership with our 8,100 member financial institutions, with the primary
ministries and Hispanic Christians, who asked the audience and the FHLBanks in                 purpose of expanding the supply of affordable credit to support housing and community
particular to do even more to support wealth accumulation for Hispanics through                development. Our housing mission was further enhanced in 1989 when Congress charged
greater homeownership; and Conrad Egan of the National Housing Conference who                  the FHLBanks with implementing community investment programs to benefit affordable
emphasized the importance of reducing regulatory barriers to ensure that zoning                housing in America. This wise housing public policy has spawned local public/private
policies support diverse housing types. In addition, a panel of experts on green build-        partnerships allowing the FHLBanks to impact nearly every county in this country. It was
ing reiterated the vital need for more developers willing to build green, and a panel of       thoughtful housing policy then and it remains so today, and has helped lower the cost of,
affordable housing experts declared that the aging baby boomers and a rising minority          and provide for, housing for millions of Americans.
population will have the greatest need in the near future for housing that is affordable.
                                                                                               The following pages highlight a few of the exceptional examples of the community invest-
Since their creation by Congress in 1932, the                                                  ment program partnerships that are being efficiently and effectively carried out today by
                                                                                               the Federal Home Loan Banks. We are privately capitalized and funded and use no tax-
FHLBanks’ mission has been to enhance the                                                      payer dollars in pursuit of our public mission. We have more than $640 billion in loans
                                                                                               to our members and $100 billion in residential mortgage loans held in portfolio. In 2005,
quality of life for the citizens of this country.                                              our affordable housing grant programs provided over $280 million in direct assistance to
                                                                                               expand the supply of affordable housing and to allow low- and moderate-income families
At the end of the day and amid all the progressive, solution-driven ideas presented,           to realize the American Dream of Homeownership. If the Affordable Housing Program
the key words weren’t subsidy and obligation, but investment and opportunity. Where            were a stand-alone foundation, it would be the largest housing foundation in the country.
there is need for subsidy, there is also the ability to invest in the future. Where there is   We are proud to be an important part of the ongoing effort to make this country a place
an obligation to help, there is also an opportunity to change lives, to change communi-        where hope becomes reality for millions of Americans.
ties, and to enhance the future of an entire country. Helping an individual transition
from homelessness to permanent housing helps that individual become a contributor              We hope this small booklet will further your understanding of the impact the Federal
to society. Enhancing the affordability of housing allows a family to focus on raising and     Home Loan Banks make in America. For more information or to contact us, please visit
educating children and improving neighborhoods. Helping families buy their first home          www.fhlbanks.com.
allows them to build equity and create wealth with generational implications. Expanding
economic development allows communities to grow and be vibrant.                                On behalf of the 12 Federal Home Loan Banks,


I hope you’ll take a minute to explore the pages of this book, which contain a synopsis
of the ideas and comments each speaker shared with attendees. You’ll also read about
initiatives in each of the regions served by one of the 12 FHLBanks, which showcases the
FHLBanks’ innovative programs, products and services that are making a difference in           Andrew J. Jetter
communities throughout rural and urban America.                                                President & CEO
                                                                                               FHLBank Topeka
                    The Federal Home Loan Bank System is a Government-
   Atlanta        Sponsored Enterprise (GSE), chartered by Congress in 1932
                  to support residential mortgage lending and related community
   Boston
                investment. The 12 FHLBanks continue to fulfill their mission by
  Chicago       assuring a continuous flow of funds to residential mortgage lenders.
                The FHLBanks’ Office of Finance originates these funds through
  Cincinnati
                 the sale of debt securities, known as consolidated obligations, into
   Dallas            the capital markets through the System’s dealer network.
                     The proceeds from these sales are then loaned to member
Des Moines
                  financial institutions at attractive rates, helping families realize
Indianapolis         the dream of homeownership, stimulating the creation of
                   affordable housing and improving the business environment.
  New York

                The following pages tell the story of our
  Pittsburgh
                   work in America’s communities.
San Francisco


   Seattle


   Topeka

                                           The FHLBanks
                         Celebrating 75 Years of Service to Members and Communities

                                             1932-2007
                                                           FHLBank Atlanta serves:                                                                                   7

                                                                                                                                          Atlanta
                                                           Alabama, Florida, Georgia, Maryland,
                                                           North Carolina, South Carolina,
                                                           Virginia and Washington, DC




               Conference Highlights
                                                                                                                   Woods at Yorktown Apartments
                                                                                                                               Yorktown, Virginia
                  Green Building Panel
Ray Christman, former President and CEO, FHLBank Atlanta
                                                           Partners

  The development of green building is revolutionary.      FHLBank Atlanta:                       Affordable Housing Program
                                                           Member Bank:                           First National Bank, Christiansburg, Virginia
    We need to rebuild and recreate where we live.         Developer:                             Community Housing Partners Corporation, Christiansburg, Virginia


  Thankfully, we’re seeing an increase in the number
                                                           The Community Housing Partners Corporation improves housing opportunities
of green developers. There was a 20% increase in 2005.
                                                           for low-and moderate-income families and individuals through a variety of programs
                                                           including multifamily rental housing, single family homeownership, rehabilitation,
 There’s been a dramatic change in how businesses view     weatherization, and housing for the elderly and
green building - going green makes good economic sense.    disabled. CHPC has developed over 40 properties
                                                           using a wide variety of financing structures and
 Green, affordable housing is no longer an oxymoron.       funding programs, including FHLBank Atlanta’s
                                                           Affordable Housing Program.

                                                           The Woods at Yorktown Apartments was built
                                                           in the 1940s as Navy housing. CHPC used Low-
                                                           income Housing Tax Credits and a variety of other
                                                           funding sources, including an FHLBank Atlanta
                                                           grant of $354,000, to rehabilitate the Woods
                                                           at Yorktown into 118 units that include 94           FHLBank Atlanta ahp Grant: $354,000
                                                           two-bedroom units, 12 three-bedroom units,
                                                           and 12 four-bedroom units. The extensive rehabilitation included new roofs, windows, siding,
                                                           HVAC systems, kitchens, bathroom fixtures and flooring. The plumbing was updated, electrical
                                                           system repaired and insulation added. Porches, new sidewalks and new landscaping were
                                                           added to the buildings to improve the attractiveness of the exteriors and create a stronger
                                                           sense of community and pride in the development.
Atlanta                                                                                                                                                    9

                                                                                                  E conomic D evelopment
                                                                                                       Greater Peace Child Care Center
                                                                                                                      Opelika, Alabama


                                                                 Partners

                                                                 FHLBank Atlanta:          EDGE Loan
                                                                 Member Bank:              AmSouth Bank, Opelika, Alabama
                                                                 Borrower:                 Greater Peace Community Development Corp., Opelika, Alabama



                                                                 FHLBank Atlanta’s Economic Development and Growth Enhancement Program
                                                                 (EDGE) provides loans to financial institutions with subsidized interest rates for
                                                                 long-term financing of targeted community economic development projects. An
                                                                 EDGE loan was used by AmSouth Bank to construct a 5,450-square-foot facility in
                                                                 a low-income area in Opelika, Alabama, to provide accessible and affordable childcare
                                                                 for more than 75 children age birth to 8 years. The center also provides after-school
                                                                 care for 15 children. The center is open from 6:30 am to 10 pm daily to provide service
                                                                 to parents working at a nearby manufacturing plant, and is located adjacent to a
                                                                 newly constructed elementary school with which both the Community Development
                                                                 Corporation and church maintain a supportive partnership. Thirty jobs were created
                                                                 as a result of the project.

                                                                 The Opelika area has experienced a 16% growth rate during the last 10 years without
                                                                 an increase in affordable childcare services. An extensive market study of area
FHLBank Atlanta EDGE Loan: $488,750                              childcare service providers showed a need for more such providers, especially at
                                                                 affordable rates. In addition to providing quality care for the community’s children,
                                                                 other objectives were to create new jobs and career opportunities in childcare for
                                                                 community residents, ensure a more stable workforce, and strengthen families,
While we try to teach our children all about life,               especially by providing support to single-parent households.

Our children teach us what life is all about.– Angela Schwindt
                                                                                 FHLB Boston serves:                                                                       11
                                                                                 Connecticut, Maine, Massachusetts,



                                                                                                                                                          Boston
                                                                                 New Hampshire, Rhode Island and Vermont




                          Conference Highlights
                                                                                                                                                    Millview Apartments
     Dick White, Chairman & CEO, Community National Bank, Derby, Vermont                                                                          Laconia, New Hampshire

         FHLB Boston has been an important partner to our institution.           Partners
     We were the first community bank to join FHLB Boston; we were the
first bank in the Northeast to use the MPF (Mortgage Partnership Finance®)       FHLB Boston:                              Affordable Housing Program

      Program; we were the first to participate in the equity builder program;   Member Bank:                              Laconia Savings Bank
      and one of the first to participate in the Affordable Housing Program.     Developer:                                Laconia Area Community Land Trust


          We’re in a much more competitive business than taking
                                                                                 For several years, the Laconia Area Community Land Trust has been transforming
      deposits or providing loans, and the FHLBanks help us compete.             marginal housing into attractive affordable housing in neighborhoods throughout the
                                                                                 city. In 2003, the Land Trust built Millview, an apartment
                        What a community bank does:                              initiative affordable to very low- and low-income residents.
            • creates safety and financial security for its customers
                                  • creates jobs                                 Awarded a $300,000 grant and a $350,000 subsidized
                       • stabilizes at-risk neighborhoods                        advance by the Federal Home Loan Bank of Boston’s
                                                                                 Affordable Housing Program through member Laconia
             • helps people achieve the dream of homeownership
                                                                                 Savings Bank, Millview is now home to 18 families with
        • helps people achieve the dream of owning their own business            modest incomes, including Ellen Castro and her 2-year-
                                                                                 old daughter.
                     The FHLBanks help us do all this.
        It changes the face and the fabric of the communities we serve.          “I had nowhere to go, and through the help of the
                                                                                 Land Trust I found this beautiful apartment for me        FHLB Boston AHP grant: $300,000
                                                                                 and my daughter,” said Castro, a single mother
                                                                                 who has her own housekeeping business. “The Land Trust was wonderful to me;
                                                                                 they treated me with respect and dignity; they made me feel good about myself.”

                                                                                 Over the years, the Land Trust has received a total of six FHLBank AHP awards to
                                                                                 develop affordable housing in neighborhoods across the city. “The AHP makes these
                                                                                 projects viable,” said Kenneth Wilson, vice president/commercial lending officer at
                                                                                 member Laconia Savings Bank, “and the cooperation, assistance and education we
                                                                                 get from FHLB Boston in carrying them out is invaluable.”
Boston                                                                                                                                          13

                                                                             C ommunity D evelopment
                                                                                                          Bicycle World
                                                                                             Greenfield, Massachusetts


                                                     Partners

                                                     FHLB Boston:              Community Development Program Advance
                                                     Member Bank:              Greenfield Savings Bank, Greenfield, Massachusetts
                                                     Borrower:                 Bicycle World, Greenfield, Massachusetts



                                                     Greenfield Savings Bank in Greenfield, Massachusetts, often uses the Federal Home
                                                     Loan Bank of Boston’s community development advances as a key source of discounted
                                                     financing for small businesses, affordable housing, local public-works projects, and
                                                     other initiatives benefiting low- to moderate-income families and neighborhoods.

                                                     “There are challenges to lending to nonprofits or marginally profitable small businesses
FHLB Boston Community Development advance            in the area,” said Joseph A. Poirier, president of Greenfield Savings Bank. “You want
                                                     to do it, but on the other hand, you want to produce a good return at the bank. This is
                                                     why FHLB Boston’s community development advance works for us.”

                                                     Poirier says community development advances are especially useful in funding
                                                     organizations with unpredictable revenue streams.

                                                     “These FHLB advances provide us with a slightly lower cost of funds so that we’re
                                                     able to provide financing to these organizations, virtually at market rates,” noted
                                                     Poirier. The bank has used the advances to finance a broad range of housing
                                                     and commercial initiatives in income-eligible neighborhoods, including multifamily
                                                     affordable housing, a bicycle shop, and a food cooperative — the kind of small,
Nothing compares to the simple                       locally owned businesses that are a key component of the county economy.

pleasure of a bike ride.         – John F. Kennedy
                                                                                 FHLBank Chicago serves:                                                           15
                                                                                 Illinois and Wisconsin



                                                                                                                                        Chicago
                         Conference Highlights
                                                                                                                       DownPayment Plus® Program
    David Crowe, PhD, Senior Staff Vice President for Federal Regulatory
                                                                                                                                 Chicago, Illinois
         and Housing Policy, National Association of Home Builders



  How can you produce affordable housing at the lowest possible cost             Partners
   in a competitive industry and overcome the obstacles to doing so?             FHLBank Chicago:
                                                                                                                              ®
                                                                                                           Downpayment Plus Program (DPP )
                                                                                                                                              ®



                                                                                 Member Bank:              Marquette Bank, Chicago Illinois
                              The Obstacles:
• Lot costs, which are tripling despite the fact that lots are getting smaller
             • Rising cost of materials (concrete and lumber)                                                           ®                ®
                                                                                 FHLBank Chicago’s Downpayment Plus Program (DPP ) is a non-competitive
                and associated rise in cost per square foot                      downpayment and closing-cost assistance program for homebuyers earning up to
        • Lack of infrastructure and alternative financing vehicles              80% of the area median income. Homebuyers are eligible to receive up to $5,000
                 • NIMBYism and density avoidance                                per household. The program can be accessed directly by FHLBank member financial
                                                                                 institutions making first mortgages to eligible homebuyers.

     Communities should exercise their power to influence builders.              Ruth Allen (third from left)
                                                                                 was looking for a home in
                                                                                 Chicago that would serve the
                                                                                 individual and collective needs
                                                                                 of four generations of her
                                                                                 family. While attending home-
                                                                                 buyer counseling courses as
                                                                                 a first step toward investing
                                                                                 in a home, she met a rep-
                                                                                 resentative from Marquette
                                                                                 Bank, who introduced her to
                                                                                 the Chicago FHLBank’s down-
                                                                                 payment assistance program
                                                                                 and helped her realize her
                                                                                 dream of homeownership
                                                                                 for her family.                       FHLBank Chicago Downpayment assistance: $5,000
Chicago                                                                                                                          17


                                                                             E conomic D evelopment
                                                                                                        Bumble “B” Dairy
                                                                                                     Cuba City, Wisconsin


                                                 Partners

                                                 FHLBank Chicago:           Community Economic Development Advance
                                                 Member Bank:               Benton State Bank, Benton, Illinois
                                                 Borrower:                  Bumble “B” Dairy, Cuba City, Wisconsin



                                                 FHLBank Chicago offers Community Economic Development Advances
                                                 (CEDA) to support its members’ community economic development
                                                 lending. Priced below standard advance rates, these advances (loans)
                                                 are used to fund commercial, manufacturing and agriculture projects as
                                                 well as public or community facilities and public or private infrastructure.
                                                 Projects must meet eligibility requirements to demonstrate a benefit to
                                                 low- and moderate-income areas and households or to provide financing
                                                 to small businesses.

                                                 With the Community Economic Development Advance that Greg Busch
FHLBank Chicago CEDA Loan                        received through Benton State Bank, he was able to buy out his partner’s
                                                 share of their dairy farm, build a new milking station and a new maternity
                                                 barn as well as meet new environmental regulations. The fixed-rate, long-term
                                                 loan that Benton State Bank was able to offer through its access to FHLBank
                                                 Chicago provided Greg with the breathing room he needed to maintain and
                                                 grow his Bumble “B” Dairy with its seven employees and 220 dairy cows,
                                                 which produce 1,600 gallons of milk a day.

All the really good ideas I ever had came
to me while I was milking a cow.  – Grant Wood
                                                                                FHLBank Cincinnati serves:
                                                                                Kentucky, Ohio and Tennessee
                                                                                                                                                                              19

                                                                                                                                        Cincinnati
                         Conference highlights
                                                                                                               American Dream Homeownership Challenge
                Karl Bren, President, Green Visions Consulting                                                                      Memphis, Tennessee

We’re all in this earth game together and we have to be part of the solution.
                                                                                Partners

 First ignorance, then liability: We’re all liable because we’ve heard this.    FHLBank Cincinnati:                 American Dream Homeownership Challenge
 What can you do in your position, where you’re at, to make a difference?       Developer:                          Alpha Omega Veterans Service, Memphis, Tennessee

             Global climate change – we have about 10 years
               just to stop the increase – that’s 3,650 days.
                                                                                A $50,000 grant from the American Dream
                                                                                Homeownership Challenge program helped six
      We can’t do something about all of it, but we can do our piece;           veterans with mental and physical disabilities
 we can build more environmentally sound; there’s expertise in every state,     become homeowners in Memphis, Tenn.
           and there are green incentives for affordable housing.
                                                                                The American Dream Homeownership Challenge
                                                                                grant program was created by the Federal Home Loan
                                                                                Bank of Cincinnati to help provide homeownership
                                                                                opportunities above and beyond its congressionally
                                                                                mandated Affordable Housing Program. The American
                                                                                Dream program is aimed at minorities and persons
                                                                                with special needs, providing funds to help them get
                                                                                into homes – for downpayment assistance, principal
                                                                                writedowns or offsetting other costs to reduce the
                                                                                price of the home for them.

                                                                                Alpha Omega Veterans Services of Memphis is a non-
                                                                                profit that provides services to veterans, including those
                                                                                with mental, substance abuse or financial challenges.
                                                                                Services include housing for disabled and homeless
                                                                                veterans, job assistance and rehabilitation services.             FHLBank Cincinnati ahp: $50,000
Cincinnati                                                                                                                                             21

                                                                                                             A ffordable H ousing
                                                                                                                  Creek View Homeownership
                                                                                                                           Chillicothe, Ohio


                                                                         Partners

                                                                         FHLBank Cincinnati:       Affordable Housing Program
                                                                         Member Bank:              Fifth Third Bank of Cincinnati
                                                                         Developer:                Frontier Community Services, Chillicothe, Ohio



                                                                         The Federal Home Loan Bank of Cincinnati provided a $900,000 below-
                                                                         market-rate loan, through Fifth Third Bank of Cincinnati, to help construct
                                                                         Phase I of the Creek View Homeownership project in Chillicothe, Ohio.
                                                                         FHLBank and Fifth Third partnered with Frontier Community Services
                                                                         of Chillicothe to build 15 homes to provide homeownership opportunities
                                                                         to very low-, low- and moderate-income families.

                                                                         Since that initial grant in 2001, FHLBank, Fifth Third and Frontier have
                                                                         partnered to continue expanding this development. In all, FHLBank has
                                                                         provided $3.8 million in below-market-rate loans to support $6.5 million
                                                                         in development costs at Creek View and other subdivisions. In all,
                                                                         55 homes have been built for first-time buyers.


FHLBank Cincinnati Community
Housing Program grant: $900,000




Where we love is home - home that
our feet may leave, but not our hearts.   – Oliver Wendell Holmes, Sr.
                                                                                      FHLB Dallas serves:                                                                                 23
                                                                                      Arkansas, Louisiana, Mississippi,



                                                                                                                                                              Dallas
                                                                                      New Mexico and Texas




                            Conference Highlights
                                                                                                                                                 Shrimping Business
            John Breaux, former United States Senator from Louisiana                                                                          New Orleans, Louisiana

   The huge change in the Congress of the United States was a tsunami.                Partners
  It was much, much more than a blip or a wave. The fiscally conservative
                                                                                      FHLB Dallas:                        Hurricane Katrina Disaster Relief
 Blue Dog Democrats will be a major force, and so will the Black Caucus.
                                                                                      Member Bank:                        Fifth District Savings Bank, New Orleans, Louisiana

 Housing is not on the list of key priorities for the coming legislative agenda.      Borrower:                           Shrimp Boat Operator, Chalmette, Louisiana
 What is on the agenda is ... national security, the minimum wage, healthcare,
energy dependence, college tuition, social security, folks living longer ... but no
                                                                                      Merlin Shaefer thought moving his shrimp boat behind the levee into a marina in
   mention of housing. Try to make affordable housing a priority issue for            Chalmette would provide some measure of protection from Hurricane Katrina.
     this next Congress. It’s more than getting GSE legislation passed.               Perhaps it did, he muses, but not enough to
                                                                                      make much difference as the storm slammed
   The way to form a consensus is to start from the middle and work out.              ashore. Days later when he was able to get back
  And remember, the art of democracy and diplomacy is reaching consensus.             to the marina, the scene was utter devastation.
    Things are going to get better, because continuing this same pattern
                                                                                      “Boats were lying every which way, all over the
                       would be a recipe for failure.
                                                                                      place,” said Shaefer. “My boat was underwater,
                                                                                      bow first, with one side filled with mud and silt.”

                                                                                      Shaefer had just opened a seafood market in
                                                                                      New Orleans that gave him a retail outlet for his
                                                                                      shrimp and crab catches, but he was suddenly
                                                                                      faced with the loss of his livelihood on two fronts.
                                                                                                                                                                       FHLB Dallas disaster
                                                                                      The $20,000 FHLB Dallas disaster relief grant                                    relief grant: $20,000
                                                                                      allowed him to raise his boat and will help fund refurbishment in
                                                                                      the off-season. “Luckily, my boat was in fair shape and we were able to start shrimping
                                                                                      again, which was a real blessing.”

                                                                                      “Without the grant, I’d probably be bankrupt now,” concluded Shaefer. “The money
                                                                                      picked me up and got me started again. I thank you from the bottom of my heart.”
Dallas                                                                                                                                                25

                                                                                     C ommunity D evelopment
                                                                                                      Texas Tire and Accessories
                                                                                                     Hallettsville & Edna, Texas


                                                             Partners

                                                             FHLB Dallas:              Economic Development Program
                                                             Member Bank:              Peoples State Bank, Hallettsville, Texas
                                                             Borrower:                 Texas Tire & Accessories, Hallettsville & Edna, Texas



                                                             FHLB of Dallas’ Economic Development Program provides favorably priced loans to
                                                             its members to finance economic development or commercial revitalization projects.

                                                             For Todd Schindler, the closure of a tire dealer in nearby Edna, Texas, presented an
                                                             attractive opportunity to expand his successful automotive supply business by
FHLB Dallas Community Development loan                       opening a second location. His challenge was securing adequate and affordable
                                                             funding to see the expansion through the start-up phase. “Small businesses today
                                                             face many challenges,” said Schindler. “A business like ours faces competitive
                                                             pressure from large corporate retailers in nearby towns and the 24/7 Internet service
                                                             capabilities of a global economy. EDP provides a great service to smaller communities
                                                             by helping small businesses remain viable.”

                                                             Peoples State Bank assured the entrepreneur that his business expansion qualified
                                                             for a low-cost loan because it was located in a rural area with a population of 25,000
                                                             or fewer residents with household incomes at or below 115% of the area median
                                                             income. “Todd had a good track record with us and prepared a solid business plan
                                                             for the new location, which made him a great candidate for these programs,” said
                                                             president Stanley Bujnoch Jr. “As a community bank, we rely on economic develop-
After all, the chief business of the                         ment tools like these programs to help this area grow – and FHLB of Dallas’ EDP

American people is business.
                                                             and EDPPlus are by far the easiest to use and most conveniently available.”
                                         – Calvin Coolidge
                                                                       FHLB Des Moines serves:                                                                     27
                                                                       Iowa, Minnesota, Missouri,



                                                                                                                       Des Moines
                                                                       North Dakota and South Dakota




                     Conference Highlights
                                                                                                                               Portland Village
Curt Hage, President of Home Federal Bank, Sioux Falls, South Dakota
                                                                                                                          Minneapolis, Minnesota

          The Affordable Housing Program encourages
                                                                       Partners
       us as community banks to have an interest in helping
    to facilitate a solution to the affordable housing problem…        FHLB Des Moines:                Affordable Housing Program
                these dollars really provide leverage.                 Member Bank:                    Franklin National Bank of Minneapolis
                                                                       Developer:                      Alliance Housing, Inc., Minneapolis, Minnesota
        The money that goes into this program comes from
       the product of our work. The funds are generated in
         the use of our borrowings from the FHLBanks.                  Portland Village
                                                                       provides 26 units of
                                                                       housing for residents
         It encourages us as community bankers to work                 at or below 80% of
      with others who have an interest in solving affordable           the area’s median
          housing problems that every community faces.                 income. The project
                                                                       also provides child
                                                                       care and various
                                                                       other on-site support
                                                                       services. Ample and
                                                                       convenient parking
                                                                       as well as outdoor
                                                                       recreation areas for
                                                                       children are also ben-
                                                                       efits residents enjoy.



                                                                                                                                   FHLB Des Moines AHP Grant: $119,900
Des Moines                                                                                                                                              29


                                                                                                                   A ffordable H ousing
                                                                                                                                  The Missouri Hotel
                                                                                                                                Springfield, Missouri


                                                                               Partners

                                                                               FHLB Des Moines:          Affordable Housing Program
                                                                               Member Bank:              Great Southern Bank
                                                                               Developer:                The Kitchen, Springfield, Missouri



                                                                               An FHLB Des Moines Affordable Housing Program grant helped
                                                                               remodel the Kitchen and lobby of the Missouri Hotel, an historic
                                                                               structure in Springfield. The Kitchen is a continuum of care provider
                                                                               for the homeless and at-risk homeless in Springfield and the
                                                                               surrounding area. The organization started as a soup kitchen in
                                                                               1983, and now offers emergency shelter, transitional housing, a
                                                                               medical and dental clinic, mental health and substance abuse
                                                                               counseling, education and job-training, and a food pantry.
                                                                               Some of the residents at the Missouri Hotel work in The Kitchen.




FHLB Des Moines AHP Grant: $190,000



One of the very nicest things about life is the way
we must regularly stop whatever it is we are doing
and devote our attention to eating.   – Luciano Pavarotti and William Wright
                                                                                   FHLB Indianapolis serves:                                                                      31

                                                                                                                              Indianapolis
                                                                                   Indiana and Michigan




                           Conference highlights
                                                                                                                                        The Scott Building
    William Hudnut, Senior Resident Fellow/Public Policy, Urban Land Institute                                                           Detroit, Michigan


     You can’t have economic prosperity if you don’t have a place to live.         Partners
  We’re in the ‘re’ century where rehabilitation, renewal, revitalization and
                                                                                   FHLB Indianapolis:          Affordable Housing Program
retrofitting are going to be important… during the next 10-15 years, Americans
 are going to be spending as much on rebuilding as they are on building new…       Member Bank:                LaSalle Bank Midwest, Troy, Michigan

               we’re not going to be a throw-away society forever.                 Developer:                  Cass Community Social Services, Detroit, Michigan


                         Three thoughts on prosperity:
                                                                                   The Scott Building is a shining example of the adaptive reuse of vacant buildings
       • Economic Development: you can’t have prosperity without it                for which FHLB Affordable Housing Program funds can be used. Once a hospital in
        • Affordable Housing – enough of this “drive ‘til you qualify”             Detroit, the Scott Building now boasts two supportive housing programs for homeless
 • Sustainability – is what we’re building now going to work in the future; we     adult males: The Safe Haven for
                   need to put more money into mass transit.                       men with serious mental illness and
                                                                                   transitional housing for men with a
Successful communities are capturing the benefits of lower costs for housing and   history of substance abuse.

           for land and capturing the benefits of the information age.
                                                                                   The building contains a commercial
                                                                                   kitchen that not only feeds people in
Eminent domain: Without the threat of it, you can’t bring people to the table.     the community but also is a catering
                                                                                   and teaching kitchen. In addition to the
   The good news is that cities are understanding the need for infrastructure      $400,000 Federal Home Loan Bank
                 funding and infrastructure improvements.                          of Indianapolis Affordable Housing
                                                                                   Program grant, other funding sources
                                                                                   included Community Development
                  Three policy suggestions that would help:
                                                                                   Block Grant funds, HUD Supportive
    • Federal tax code: creating new homeownership tax credits to HFAs             Housing Program funds, HOME funds
           would help stimulate demand where markets are weak                      and fundraising efforts.
            • Homeowner tax credit for those who don’t itemize
                 • Establish individual homeownership assets
                                                                                                                                       FHLB Indianapolis AHP Grant: $400,000

                                                                                                                                                                   photo, Detroit News
Indianapolis                                                                                                                                           33


                                                                                         C ommunity I nvestment
                                                                                            Schefenacker Visions System USA
                                                                                                      marysville, Michigan


                                                            Partners

                                                            FHLB Indianapolis:        Community Investment Program
                                                            Member Bank:              Citizens First Savings Bank, Port Huron, Michigan
                                                            Non-Profit:               Schefenacker Visions System USA Inc., Marysville, Michigan



                                                            The Federal Home Loan Banks’ Community Investment Programs provide below-
                                                            market-rate loans that enable financial institutions to extend long-term financing
                                                            for housing and economic development that benefits low- and moderate-income
                                                            families and neighborhoods. The program is a catalyst for economic development
                                                            because it supports projects that create and preserve jobs and help build infrastructure
                                                            to support growth. Lenders have used CIP funds to finance owner-occupied and rental
                                                            housing, construct roads, bridges, retail stores, sewage treatment plants and provide
                                                            small business loans.

                                                            In Port Huron, Mich., Citizens First Savings Bank obtained two CIP advances through
                                                            the Federal Home Loan Bank of Indianapolis, which has helped Schefenacker Visions
                                                            System USA enhance its business. Schefenacker is a local division of Schefenacker
                                                            AG, a global company. The plant, in Marysville, Mich., produces and assembles mirror
                                                            shells for automobiles. The first CIP advance in 2005 funded a new facility enabling
FHLB Indianapolis community Investment Loan
                                                            Schefenacker to fulfill painting, production and assembly at one plant, which allowed
                                                            it to remain competitive and retain 750 employees. The second CIP advance in 2006
                                                            funded additional warehouse space attached to the new plant.

The absolute fundamental aim is to make
money out of satisfying customers.            – John Egan
                                                                               FHLBank New York serves:                                                                     35
                                                                               New Jersey, New York, Puerto Rico



                                                                                                                                       New York
                                                                               and The Virgin Islands




                          Conference Highlights
                                                                                                                                 Riverside Urban Renewal
         Conrad Egan, President and CEO, National Housing Conference                                                            New Brunswick, New Jersey


 Affordable, stable, good homes are the foundation for thriving communities.   Partners

Some of the most pressing policy changes can only be effectively implemented   FHLBank New York:                   Affordable Housing Program

                        at the state and local levels.                         Member Bank:                        Magyar Savings Bank, New Brunswick, New Jersey
                                                                               Developer:                          The Community Builders, New Brunswick, New Jersey
    What is a strategy for getting things done on the path to prosperity?
                                                                               An FHLBank of New York Affordable Housing Program grant of $950,000 helped fund
                   • Expand the availability of land:                          the Riverside Urban Renewal project, which consists of 76 units of rental housing for
              Expand the supply of homes through re-zonings                    very low-income families. The development promotes a family-oriented community
                                                                               environment and has increased the supply of affordable housing and revitalized this
                       • Reduce regulatory barriers:                           New Brunswick neighborhood. Shopping opportunities, restaurants, schools, hospitals
       Ensure that zoning policies support a diversity of housing types        and public transportation are nearby.

                                                                               The AHP subsidy partially
                     • Harness strong housing markets:
                                                                               financed the cost of construction
            Use tax increment financing to fund affordable homes               and rehabilitation. Additional
                                                                               financing was provided by
                        • Generate additional capital:                         HOPE VI grants from the New
  Ensure that housing finance agency reserves are used for affordable homes    Brunswick Housing Authority
                                                                               and City of New Brunswick
            • Preserve and recycle affordable home resources:                  Regional Contribution Agree-
                                                                               ment and HOME funds.
     Use shared equity mechanisms to create and preserve communities
           that are affordable to families with a mix of incomes

     • Empower residents to purchase and retain private-market homes:                                                                      FHLBank New York AHP Grant: $950,000
    Help moderate-income homeowners avoid foreclosure and equity loss
New York                                                                                                                                   37


                                                                                        A ffordable H ousing
                                                                                           Frederick Douglass Phase II
                                                                                                    Buffalo, New York


                                                     Partners

                                                     FHLBank New York:        Affordable Housing Program
                                                     Member Bank:             Manufacturers and Traders Trust Company, Buffalo, New York
                                                     Developer:               Buffalo Municipal Housing Authority, Buffalo, New York



                                                     The Frederick Douglass Phase II initiative rehabilitated two buildings in the
                                                     Frederick Douglass Towers public housing project into 112 rental apartments
                                                     for very low-income seniors. A $750,000 Affordable Housing Program grant
                                                     through the Federal Home Loan Bank of New York helped partially finance
                                                     construction costs. Additional financing was provided by the New York State
                                                     Housing Trust Fund, the New York State Division of Housing and Community
                                                     Renewal, the City of Buffalo, and Low Income Housing Tax Credits.

                                                     To complement the surrounding neighborhood and integrate residents into
                                                     the community, the project abuts the Frederick Douglass Phase I project,
                                                     which created a community of tree-lined streets and townhouses with
                                                     porches, bay windows and clapboard siding. The first phase was also
FHLBank New York AHP Grant: $750,000
                                                     awarded AHP funds.




A man’s character always takes its hue,
more or less, from the form and color
of things about him.          – Frederick Douglass
                                                                                 FHLBank Pittsburgh serves:                                                                              39
                                                                                 Delaware, Pennsylvania and West Virginia



                                                                                                                                                   Pittsburgh
                         Conference Highlights
                                                                                                                              Huntington high Renaissance Center
Reverend Luis Cortés Jr., President, Esperanza USA, Philadelphia, Pennsylvania                                                          Huntington, West Virginia


        Statistics from a recent study indicate that Hispanics lag               Partners
      significantly in terms of wealth accumulation, with a national
       poverty rate of 22%, a homeownership rate of 48.5% and a                  FHLBank Pittsburgh:                        Affordable Housing Program

        decline in median income of 8% between 2000 and 2005.                    Member Bank:                               Huntington Federal Savings Bank
          In addition, 20% of Hispanic mortgages are subprime                    Developer:                                 Housing Development Corporation, Huntington, West Virginia
         mortgages, and people with the same credit are twice as
                  likely as whites to get a subprime loan.
                                                                                 In an effort to help residents of all ages, the Housing Development
                                                                                 Corporation in Huntington, West Virginia, has renovated an abandoned
             Four solutions to improving the lot of Hispanics:                   high school into a mixed-use facility. The Huntington High Renaissance
    1) true immigration reform that provides a pathway to citizenship;           Center includes 42 affordable apartments
      2) school choice; 3) the integration of Hispanics into business            for seniors, a YMCA, child-care services,
        networking opportunities; 4) wealth accumulation through                 performing arts space and teen recreation
                              homeownership                                      facilities. Total development costs of the
                                                                                 project were $4.5 million. With the benefit of
                                                                                 a $275,000 grant from FHLBank Pittsburgh’s
     The FHLBanks should lead the struggle on homeownership                      Affordable Housing Program, secured by
  education for Hispanics and African-Americans. The FHLBanks                    Huntington Federal Savings Bank, this
          should be #1 in homeownership financial education.                     dormant building has found a new and
                                                                                 vibrant life in the Huntington community.
    The FHLBanks should also fight predatory lending, engage in a
    mortgage purchase program for Hispanics and create an external
                                                                                                                                                 FHLBank Pittsburgh AHP Grant: $275,000
   nonprofit safety net for low-income mortgages when they foreclose.

               The FHLBanks can be the paradigm shift.
Pittsburgh                                                                                                                                   41


                                                                                                   A ffordable H ousing
                                                                                 The Cedar creek Landing self-Help Project
                                                                                                         Lincoln, Delaware


                                                               Partners

                                                               FHLBank Pittsburgh:       Affordable Housing Program
                                                               Member Bank:              County Bank, Rehoboth Beach, Delaware
                                                               Developer:                Milford Housing Development Corporation



                                                               The Cedar Creek Landing Self-Help Project in Lincoln, Delaware, has
                                                               benefited from FHLBank Pittsburgh Affordable Housing Program
                                                               grants in both 2004 and 2005, with total development costs topping
                                                               out at $4.23 million. Using a cumulative $175,000 in AHP funding
                                                               from FHLBank Pittsburgh – made through County Bank, Rehoboth
                                                               Beach – Milford Housing Development Corporation is helping 35 first-
                                                               time homebuyers achieve their dream of homeownership.

                                                               To qualify, eligible homebuyers commit a minimum of 20 hours a week
                                                               of “sweat equity,” helping to build their own home or that of a neighbor’s.
FHLBank Pittsburgh AHP Grant: $175,000                         The project reduces first-year delinquency rates and promotes sustained
                                                               homeownership, neighborhood development and community stability.




Mid pleasures and palaces though we may roam,
Be it ever so humble, there’s no place like home.
                                         – John Howard Payne
                                                                          FHLBank San Francisco serves:                                                                    43
                                                                          Arizona, California and Nevada



                                                                                                                       San Francisco
                      Conference Highlights
                                                                                                                                            La Cocina
Mike Fratantoni, Senior Director, Single Family Research and Economics,                                                     San Francisco, California
                    Mortgage Bankers Association

                                                                          Partners
               It’s become much easier and much less
                                                                          FHLBank San Francisco: AHEAD Program
                costly over time to get a home loan.
                                                                          Member Bank:                     Citibank, N.A.

    Those who affordable housing is going to have to serve are            Sponsor:                         La Cocina, San Francisco, California

    the aging baby boomers and a rising minority population.
                                                                          In 2005, La Cocina in San Francisco
         There is increasing consumer demand for flexible                 received a $25,000 grant through the
          loan options to manage equity over time and to                  FHLBank San Francisco’s Access to
                extend the affordability of a loan.                       Housing and Economic Assistance for
                                                                          Development (AHEAD) Program. The
        Successful organizations will be large integrated                 AHEAD Program is a recoverable grant
                                                                          program that covers pre-development
       financial services firms and small agile businesses.
                                                                          and other costs associated with economic
     Mid-size companies will have a difficult time competing.             development and affordable housing.

     It is crucial that financial services organizations understand       Sponsored by Citibank, N.A., La Cocina
     the importance of demographic changes and adapt with an              provides commercial kitchen space,
   increased diversity in hiring at mortgage companies and banks          food industry training, and technical
     so that these institutions can understand the new consumer.          assistance to low-income women who
                                                                          operate informal food-related and
                                                                          catering businesses out of their homes.
                                                                          The $25,000 AHEAD Program grant
                                                                          from FHLBank San Francisco supported
                                                                          the expansion of the kitchen capacity to
                                                                          20 business tenants.
                                                                                                                              FHLBank San Francisco Ahead Grant: $25,000

                                                                                                                                                               photo, Clark Irey
San Francisco                                                                                                                                           45


                                                                                                         A ffordable H ousing
                                                                                                                        North Beach Place
                                                                                                                 San Francisco, California


                                                                       Partners

                                                                       FHLBank San Francisco: Affordable Housing Program
                                                                       Member Bank:             Citibank, N.A.
                                                                       Developer:               BRIDGE Housing Corporation, San Francisco, California



                                                                       North Beach Place is a $108 million development that transformed a
                                                                       dilapidated public housing complex into a mixed-use affordable housing
                                                                       community in San Francisco’s North Beach neighborhood. A total of
                                                                       341 units were created for lower-income families and seniors. Situated
                                                                       adjacent to a cable car turnaround, North Beach Place encompasses
                                                                       many of the ideals of a transit-oriented development.

                                                                       In addition to housing, the development features 20,000 square feet
                                                                       of commercial space, anchored by grocer Trader Joe’s, where several
                                                                       residents are employed. The Federal Home Loan Bank of San Francisco
                                                                       provided a $1 million Affordable Housing Program grant through
FHLBank San Francisco AHP Grant: $1,000,000      photo, Bob Canfield   member Citibank, N.A.




Everybody needs beauty as well as bread,
places to play in and pray in, where nature may
heal and give strength to body and soul.      – John Muir
                                                                                      FHLB Seattle serves:                                                                                   47
                                                                                      Alaska, American Samoa, Guam, Hawaii,



                                                                                                                                                                Seattle
                                                                                      Idaho, Montana, Northern Mariana Islands,
                                                                                      Oregon, Utah, Washington and Wyoming




                            Conference highlights
                                                                                                                                                        La Salle Apartments
          Dr. Suzanne Morse, President, Pew Partnership for Civic Change                                                                                Seattle, Washington

                The smartest communities do seven things right:
     • Invest right the first time for the long-term health of the community          Partners
           • Work together to put aside small-town rural rivalries                    FHLB Seattle:                               Affordable Housing Program
           • Recognize community strengths and quantify its assets                    Member Bank:                                HomeStreet Bank, Seattle, Washington
                                • Practice democracy                                  Developer:                                  Pike Place Market Preservation and Development Authority
                                 • Preserve the past
                                 • Grow new leaders
                                  • Invent the future                                 The LaSalle Project involved the renovation of four, early 1900s buildings
                                                                                      located adjacent to the historic Pike Place Market in Seattle. The project now
                                                                                      boasts 64 affordable
            Successful rural communities have to create a vision:
                                                                                      apartments for seniors,
         Smart rural communities are interested in where they’re going.               a senior center, and
                             • How to compete                                         retail and office space.
                              • How to invent                                         A $321,954 AHP grant
                    • How to live the life they want to live                          from the Federal Home
                                                                                      Loan Bank of Seattle
          Many rural communities are just moving the ball forward                     helped fund construc-
                                                                                      tion, and a Standby
         without any real sense of direction. For too many of our rural
                                                                                      Letter of Credit issued
              communities, the future just happens -- or doesn’t.                     at a discount through
                                                                                      the Seattle Bank’s
   Rural communities are bombarded with all sorts of ideas without knowing            Community Investment
which ones really work. It’s time to pay attention to the critical needs before us…   Program enabled the
   we need to help communities organize themselves to get what they want.             use of investment-
                                                                                      grade municipal bonds
                                                                                      as collateral.
           The future of rural America will depend on what happens
           inside the community rather than outside the community.
                                                                                                                                                                FHLB Seattle AHP Grant: $321,954
Seattle                                                                                                                                    49


                                                                                      C ommunity I nvestment
                                                                                                         Thompson Falls RFD
                                                                                                     Thompson Falls, Montana


                                                         Partners

                                                         FHLB Seattle:             Community Investment Program Loan
                                                         Member Bank:              First State Bank, Thompson Falls, Montana
                                                         Borrower:                 Thompson Falls Rural Fire Department



                                                         First State Bank’s funding of this rural fire station expansion is a great
                                                         example of the Seattle Bank’s Community Investment Program (CIP) at
                                                         work in the community. First State Bank used a $250,000 fixed-rate CIP
                                                         advance with a five-year term to fund this project in Thompson Falls,
                                                         Montana. With the station’s expansion, there is more room for trucks and
                                                         maintenance, equipment and training of the all-volunteer force of firefighters.

                                                         The Federal Home Loan Banks’ Community Investment Programs provide
                                                         below-market-rate loans that enable financial institutions to extend long-
                                                         term financing for housing and economic development that benefits low-and
                                                         moderate-income families and neighborhoods. The program is a catalyst for
                                                         economic development because it supports projects that create and preserve
                                                         jobs and help build infrastructure to support growth. Lenders have used CIP
                                                         funds to finance owner-occupied and rental housing, construct roads, bridges,
                                                         retail stores, and sewage treatment plants and provide small business loans.
FHLBank Seattle CIP Loan: $250,000




Firefighters save hearts and homes.   – Author Unknown
                                                                 FHLBank Topeka serves:                                                                            51
                                                                 Colorado, Kansas, Nebraska and Oklahoma



                                                                                                                                        Topeka
                  Conference Highlights
                                                                                                                                  Wahlen Properties
                Jo Davidson, Executive Director,                                                                                Franktown, Colorado
Community Housing Development Association, Denver, Colorado

                                                                 Partners
 It’s the affordable housing programs and nonprofit housing
                                                                 FHLBank Topeka:                           Community Development Program
organizations that are creating homes for those who are living
                                                                 Member Bank:                              New Frontier Bank, Greeley, Colorado
  in the gap. We need continued resources and we need to
  remember the faces of housing. We need agreement and           Borrower:                                 Wahlen Properties, Parker, Colorado

    cooperation that this is a worthy cause and we have to
                figure out a way to get it done.                 New Frontier Bank drew down a $6 million FHLBank Topeka Community Development
                                                                 Program (CDP) advance to finance a 49,000-square-foot retail and office complex
     These are the threads that must be woven together           for Wahlen Properties. “A lot of development in Parker has been extremely high end
            to make affordable housing work:                     or extremely low end – lots of metal buildings with metal roofs,” said Chuck Wahlen,
                                                                 managing partner of Wahlen Properties. Wahlen wanted to build a structure that would
         • Federal funds (HUD, USDA, other)                      be architecturally pleasing, using stone and
                                                                 other quality materials, while keeping the costs
                     • LIHTC equity
                                                                 affordable for local business owners.
                    • Foundation grants
        • Private donations (land, buildings, dollars)           He leases the space at Parker Tech Center for
                      • Sweat Equity                             $13 to $16 a square foot, nearly half what the
        • Bond financing, specialized loan programs              market demands. “We have so many customers
                  • Boutique CRA loans                           who need reasonable leases – there are compa-
                  • Developer impact fees                        nies here that absolutely could not have been in
                                                                 business if they had to pay $21 to $28 a square
                       • FHLBanks
                                                                 foot. This is what FHLBank’s CDP has done
             • Fannie Mae and Freddie Mac                        for me … it gave me the best product I could
                                                                 get at the time through my bank so that I could
                                                                 provide that kind of flexibility on my lease rates
                                                                 for these small businesses,” Wahlen said.
                                                                                                                             FHLBank Topeka economic development Loan
Topeka                                                                                                                                         53


                                                                                                             H omeownership
                                                                                            Rural First-time Homebuyer Program
                                                                                                                Wahoo, Nebraska


                                                                   Partners

                                                                   FHLBank Topeka:          Rural First-time Homebuyer Program
                                                                   Member Bank:             First National Bank, Wahoo, Nebraska




                                                                   Since 1997, FHLBank Topeka has distributed more than $10 million in
                                                                   downpayment assistance to more than 2,500 first-time homebuyers in
                                                                   Colorado, Kansas, Nebraska and Oklahoma, through its Rural First-time
                                                                   Homebuyer Program (RFHP).

                                                                   Tonette Kliment, a 30-year-old mother of one, has lived in Prague, Neb.,
                                                                   her entire life. Considering the trend for younger residents to move out
                                                                   of small towns into larger communities, that speaks volumes. Thanks to
                                                                   downpayment assistance from FHLBank Topeka, she is now a homeowner
                                                                   in the same community in which she was raised. She works two jobs in that
                                                                   same community, and she chooses to raise her 4-year-old daughter in the
                                                                   same community in which she grew up.

                                                                   Tonette is just one of thousands of homeowners throughout FHLBank
                                                                   Topeka’s four-state region who’ve been able to realize the Dream of
FHLBank Topeka down payment assistance: $4,000                     Homeownership through the availability of down payment assistance.



A little house – a house of my own –
out of the wind’s and the rain’s way.            – Padraic Colum
                  Affordable Housing Program
      Since the Affordable Housing Program (AHP) was created by Congress in 1989, the
     Federal Home Loan Banks have committed over $2.5 billion to help create more than
    520,000 housing units in America. In 2006, the FHLBanks contributed $295 million to
                                affordable housing initiatives.

   The AHP is funded with 10% of the FHLBank System’s net income each year. The AHP is
    one of the largest private sources of grant funds for affordable housing in the country.

The FHLBank System is the largest corporate contributor to Habitat for Humanity International.
              One in four Habitat homes in the U.S. has received AHP funds.

  FHLBank grants and low-interest loans are catalysts for the construction and revitalization
  of housing targeted to Americans with modest incomes. AHP-funded projects serve a wide
range of neighborhood needs. Many are designed for seniors, the disabled, homeless families,
                  first-time homeowners and others with limited resources.

  The AHP is a competitive program that provides grants twice a year. Member banks partner
    with developers and community organizations to finance the purchase, construction, or
    rehabilitation of owner-occupied or rental housing. Grants can also be used to lower the
  interest rate on loans or cover down payment and closing costs. The program is flexible so
     that AHP funds can be used in combination with other programs and funding sources,
 ensuring a project’s feasibility. To make certain that AHP-funded projects reflect local housing
   needs, each FHLBank is advised by a 15-member Affordable Housing Advisory Council for
               guidance on regional housing and community development issues.



               Community Investment Program
     CIP is a lending program that provides below-market-rate loans that enable banks to             For more information about the
       extend long-term financing for housing and economic development that benefits
                    low- and moderate-income families and neighborhoods.                            Federal Home Loan Banks, visit

   More than $44 billion in FHLBank CIP-funded loans have financed over 600,000 housing
      units and thousands of economic development projects throughout the country.                   www.fhlbanks.com
Atlanta | Boston | Chicago | Cincinnati | Dallas | Des Moines | Indianapolis
          New York | Pittsburgh | San Francisco | Seattle | Topeka

				
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