FHLBank Chicago Announces $50 Million in Interest Rate Subsidies to Expand Community Building Impact
2024年7月16日 - 8:56PM
ビジネスワイヤ(英語)
Pilot Program Will Amplify Affordable Housing
and Economic Development Investment in Illinois and Wisconsin
The Federal Home Loan Bank of Chicago (FHLBank Chicago) is
providing $50 million in interest rate subsidies to help expand
affordable housing, economic development, and community
partnerships in Illinois and Wisconsin through its new Community
Impact Advance Pilot Program. This Program provides an up to two
percent reduction in interest rates on advances, which are secured
loans, to help FHLBank Chicago member financial institutions
support their customers and amplify the impact they are making in
their communities.
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Pilot program offered through FHLBank
Chicago makes $50 million in interest rate subsidies available to
support affordable housing and economic development in Illinois and
Wisconsin. The Community Impact Advance is available today to
member financial institutions. (Photo: Business Wire)
FHLBank Chicago has already committed more than $110 million in
community investment support in 2024. Through additional program
commitments and the Community Impact Advance, the Bank’s total
investment increases to over $180 million.
“We recognize that economic challenges have created barriers to
community investment. After speaking with members of varying sizes
and balance sheet composition, the consensus was that expanding
interest rate subsidies would be the most impactful way to
positively uplift our communities,” said Carolyn Jaw, Executive
Vice President, Group Head, Sales, Strategy, and Solutions, FHLBank
Chicago. “This increase in funding for community development
activities builds on our ongoing efforts to create products and
support initiatives that help build stronger and more sustainable
communities.”
FHLBank Chicago member banks, credit unions, insurance
companies, housing associates, and community development financial
institutions (CDFIs) work with their customers to help boost
support through lending or investing in mortgages, small
businesses, non-profits, and community partner capacity building.
Regardless of size or community type, members see the fiscal
challenges facing their communities first-hand and are seeking
innovative funding solutions to deliver housing and community
investment.
“Current elevated interest rates have made accessing capital
difficult because of tightening credit standards,” said Ryan
Kamphuis, President and CEO, Bristol Morgan Bank. “Compounding the
issue, the cost of building and rehabilitating housing and
developing essential infrastructure and community facilities has
skyrocketed. Products like the Community Impact Advance address the
critical need for more funding to build and retain housing and
important community development facilities like small
businesses.”
Open today, the Community Impact Advance Pilot Program runs
through June 30, 2027. Available on a first come, first served
basis, FHLBank Chicago members throughout Illinois and Wisconsin
can reserve up to $1 million in interest rate subsidy for advances
supporting eligible activities in their communities, including
lending or investing in:
- Affordable housing – through the purchase, construction, or
rehabilitation of housing units.
- Economic development – creating and retaining jobs in small
businesses, and providing critical infrastructure and community
facilities, such as broadband, healthcare, childcare and other
community services in low- and moderate-income areas
- Community partners – expanding access to capital for CDFIs,
community development entities, nonprofits, and public benefit
corporations that assist underserved populations.
The Pilot Program’s goal is to support thousands of housing
units, jobs, economic development projects and community partners.
Designed to address growing community needs, it strengthens the
availability of liquidity that amplifies support for affordable
housing and economic development. For more information, visit
fhlbc.com/community-impact-advance.
About the Federal Home Loan Bank of Chicago
The mission of the Federal Home Loan Bank of Chicago is to
partner with our members in Illinois and Wisconsin to provide them
competitively priced funding, a reasonable return on their
investment in the Bank, and support for community investment
activities. FHLBank Chicago is one of 11 Federal Home Loan Banks
chartered by the U.S. Congress in 1932 to promote homeownership.
Our members include banks, thrifts, credit unions, insurance
companies, and community development financial institutions
throughout our District. To learn more about FHLBank Chicago,
please visit fhlbc.com.
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Casey Reidy, 312.565.5291, creidy@fhlbc.com