CINCINNATI, Jan. 12, 2006 (PRIMEZONE) -- Federal Home Loan Bank of Cincinnati president David H. Hehman announced grants totaling $10.4 million in funds under the Affordable Housing Program (AHP) and nearly $1 million under the American Dream Homeownership Challenge. Program funds will be awarded to 49 member financial institutions in the FHLBank Cincinnati's district of Kentucky, Ohio and Tennessee.
In 2005, the FHLBank reached a milestone, as funds earmarked through its Affordable Housing programs since 1990 topped $200 million. While it took 11 years to reach the $100 million mark in 2001, it took less than five years to reach $200 million.
"The growth of our affordable-housing programs is indicative not only of the growth of the FHLBank since 1990, but also of the tremendous need for affordable housing in our district," Mr. Hehman said. "With the help of our member financial institutions and the many dedicated housing organizations we work with, we've been able to help create nearly 35,000 units of affordable housing for lower-income families and people with special needs. The demand remains great, however, and our hard work will continue."
Through the AHP, a total of 32 financial institutions will receive $10.4 million to create 878 units of affordable housing for low- and moderate-income residents. Each year the FHLBank Cincinnati sets aside 10 percent of net earnings for the congressionally established AHP.
Additionally, 21 member institutions will receive nearly $1.0 million in American Dream Homeownership Challenge grants to be used toward affordable housing opportunities for minorities or special needs persons. As a partner in President Bush's Blueprint for the American Dream, the FHLBank Cincinnati established the American Dream Homeownership Challenge in 2003, over and above its AHP commitment, to fund innovative solutions to help minority and special needs populations become homeowners.
The FHLBank also created a special two-year, $15 million "New Neighbors" grant fund to help create permanent housing for victims of hurricanes Katrina, Rita and Wilma.
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 (FHLBank) is a $76 billion, triple-A rated regional wholesale bank providing financial services for residential housing and economic development to 745 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.