Federal Home Loan Banks

Floor Speech

Mr. TERRY. Mr. Speaker, today I am proud to recognize the 25th anniversary of a grant program that has benefitted thousands of individuals and families across the country--the Federal Home Loan Bank (FHLBank) system's Affordable Housing Program (AHP). The AHP is a flexible source of grants designed to help community-based lenders and their partners develop affordable housing solutions for very low- to moderate-income individuals and families.

The AHP receives its funding through annual contributions of 10 percent of the FHLBanks' net income. The Federal Home Loan Banks have awarded over $5.1 billion in AHP funds since Congress created the program in 1990. These funds represent the largest single source of private grant dollars available for housing and community development in the country.

By developing affordable housing--and creating stable communities in the process--AHP funds have a long-term, positive economic impact. Many projects are designed for seniors, the disabled, homeless families, first-time homeowners and others with limited resources. More than 845,157 housing units have been built using AHP funds. And I'm happy to say that the Federal Home Loan Bank system is the largest single funding provider to Habitat for Humanity, an organization that I have strongly supported during my 16 years in Congress.

Created by an act of Congress in 1932, the Federal Home Loan Banks are 12 regional cooperative banks that community-based financial institutions utilize to make home loans, small business loans and agriculture loans in every corner of America. Nearly 8,000 lenders are members of the Federal Home Loan Bank cooperative, representing approximately 80 percent of America's insured lending institutions. The FHLBanks and their members have been the largest and most reliable source of funding for community lending for over 80 years.

The FHLBanks have repeatedly demonstrated their ability to serve their members and to meet the affordable housing and community development needs of individuals, families and local communities through the Affordable Housing Program. As Congress contemplates the future of housing finance, I encourage members of Congress and the Administration to look to the Federal Home Loan Banks as an example of a system that works well.

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