CINCINNATI, Jan. 23, 2008 (PRIME NEWSWIRE) -- Federal Home Loan Bank of Cincinnati President David Hehman announced 65 grants totaling more than $16 million in funds under the Affordable Housing Program (AHP). Program funds will be awarded to 40 member financial institutions in the FHLBank Cincinnati's district of Kentucky, Ohio and Tennessee.
This round of awards, the largest since AHP began in 1990, includes two $1 million grants to aid the homeless and people with special needs. The FHLBank has contributed $282 million toward the creation of 43,263 units of lower-income housing through its Affordable Housing Program since 1990. This is the second round of grants in 2007. In June, the FHLBank awarded $10.8 million to help fund creation of 810 units of affordable housing.
In addition, 10 institutions will share $1 million in American Dream Homeownership Challenge grants to help 46 minority households, special needs households and households displaced by natural disasters become homeowners. The AHP and American Dream awards were approved by the FHLBank's Board of Directors at its December meeting.
"This was a banner year for our Affordable Housing and American Dream programs, and those in need of good housing were the beneficiaries," Mr. Hehman said. "I commend our member financial institutions for their active participation in these programs, especially given the need for affordable housing options in today's strained housing environment."
A complete list of the 77 grants approved under the AHP and American Dream program is available at the FHLBank's web site, www.fhlbcin.com.
In 2007, the FHLBank committed $38.7 million to support affordable housing, a record for the company. Each year the FHLBank Cincinnati sets aside 10 percent of net earnings for the congressionally established AHP, which helps create affordable housing for very low-, low- and moderate-income residents. In 2007, the FHLBank Cincinnati awarded AHP grants totaling $26.8 million to provide 2,072 units of affordable housing.
About 30 percent of funds allocated to AHP went to the Welcome Home downpayment assistance program. In 2007, $8.9 million was distributed through 210 member financial institutions, to help 1,943 homebuyers.
Lastly, $3 million was distributed through American Dream, a voluntary program created by the FHLBank in 2003 to promote homeownership for minorities, families with special needs, and families displaced by natural disasters. This year's awards will help 173 households become homeowners.
For more information on specific awards and details of AHP programs, visit the FHLBank Cincinnati web site at http://www.fhlbcin.com.
The Federal Home Loan Bank of Cincinnati is an $87 billion, triple-A rated regional wholesale bank providing financial services for residential housing and economic development to 731 member financial institutions located in the Fifth FHLBank District of Kentucky, Ohio and Tennessee. The FHLBank System, including 12 district FHLBanks, was chartered in 1932 by the U.S. Congress to promote housing finance but is wholly owned by its member institution stockholders and does not use taxpayer dollars.