Published: November 2024

Coalition calls on Congress to expand FHLBank contributions to affordable housing programs

Coalition: Coalition for Federal Home Loan Bank Reform (CFR)

In a letter to congressional leaders, the Coalition for Federal Home Loan Bank Reform (CFR) called for action that would require FHL Banks to contribute at least 30% of their net income each year to support community development and affordable housing programs.

The Coalition for Federal Home Loan Bank Reform (CFR) published a letter to congressional leaders in which coalition members, including Consumer Action, urged Congress to require the Federal Home Loan Banks (FHLBanks) to contribute at least 30% of their net income each year to support community development, including at least 20% to Affordable Housing Programs (AHP). Congress chartered the FHLBank System in 1932 to support fair and affordable housing, and in 1989, the Financial Institutions Reform, Recovery, and Enforcement Act added the AHP to the FHLBanks’ duties, mandating that each Bank dedicate 10% of its net income to these programs. The Congressional Budget Office estimates that the FHLBank System receives $7.3 billion in indirect government subsidies each year. In 2023, the banks made a record $6.7 billion in government-subsidized profits—evidence that that could very feasibly contribute more toward helping the millions of U.S. families struggling to afford housing. Yet, the FHLB Presidents stated that they would not increase AHP contributions unless directed by Congress. Congressional action to mandate increased contributions would spur housing construction and help support communities across the nation.

Lead Organization

Coalition for Federal Home Loan Bank Reform (CFR)

More Information

Read the letter here.

Download PDF

No Download Available