CINCINNATI, June 26, 2006 (PRIMEZONE) -- Federal Home Loan Bank of Cincinnati President David H. Hehman announced grants totaling $11.5 million in funds under the Affordable Housing Program (AHP) and $500,000 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.
The FHLBank has contributed $223.5 million for the creation of 37,717 units of lower-income housing through its Affordable Housing Program since 1990, and $4.5 million to help 879 persons become first-time homebuyers through the American Dream Homeownership Challenge.
"The rise of housing costs in many cities has heightened the need for affordable housing, especially for those with special needs," Mr. Hehman said. "These awards fund more than 1,000 units of housing, including nearly 700 units for very low-income households."
Through the AHP, a total of 42 financial institutions will receive $11.5 million to create 981 units of affordable housing for very low-, low- and moderate-income residents. Each year the FHLBank Cincinnati sets aside 10 percent of net earnings for the congressionally established AHP.
Additionally, 10 member institutions will receive $500,000 in American Dream Homeownership Challenge grants to be used toward affordable housing opportunities for minorities or persons with special needs. 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 increase homeownership for minorities and persons with special needs.
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 $79.1 billion, triple-A rated regional wholesale bank providing financial services for residential housing and economic development to 739 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.