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Affordable Housing & Community Development

 

In December 2010, FHFA published a final rule establishing housing goals for the Federal Home Loan Banks (FHLBanks) in the Federal Register. The housing goals measure the extent that acquired member assets programs of the FHLBanks are serving low- and very low-income families and families residing in low-income areas.

The housing goals for the FHLBanks are modeled on with the single-family housing goals for Fannie Mae and Freddie Mac (according to the statutory intent of the Housing and Economic Recovery Act of 2008) but they take into account the unique characteristics of the FHLBanks.  In addition, the Federal Home Loan Bank Act required each of the Federal Home Loan Banks to establish an Affordable Housing Program, and they have done so.

The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 required the setting of annual housing goals for Fannie Mae and Freddie Mac and the monitoring of performance in achieving these goals. FHFA sets and monitors the performance on meeting the established goals. On November 13, 2012, FHFA published a final rule establishing calendar years 2012-14 housing goals for Fannie Mae and Freddie Mac.

 

​Federal Home Loan Bank System

 

Housing Goals

The FHLBanks purchase loans from their members under the acquired member assets program, a whole loan mortgage purchase program.

The FHLBanks’ housing goals performance is based on single-family whole loans purchased through their acquired member assets programs. In 2012, 8 of the 12 FHLBanks purchased whole loans through those programs.

 

The Programs

Affordable Housing Program

From 1990, when AHP was authorized, until 2012, the FHLBanks awarded nearly $5 billion in AHP subsidies and assisted 806,688 households.

Community Investment Program

In 2012, the FHLBanks issued $2.2 billion in Community Investment Program advances for housing projects and $5.1 million for economic development projects.

Community Investment Cash Advance Program

In 2012, the FHLBanks issued $1.3 billion in Community Investment Cash Advance advances for such projects as commercial, industrial, manufacturing, social services, and public facilities.

 

Read more about the Federal Home Loan Banks' affordable housing activities.

Fannie Mae & Freddie Mac

 

Housing Goals

Under the Housing and Economic Recovery Act and FHFA regulations, Fannie Mae and Freddie Mac are subject to the following:

    • four single-family affordable housing goals;

    • one single-family housing subgoal;

    • one multifamily special affordable housing goal, and

    • one multifamily housing subgoal.

 

Rules Establishing Housing Goals for 2012-14.

On November 13, 2012, FHFA published a final rule establishing housing goals for calendar years 2012-14. These differed somewhat from the goals that were in effect for 2010 and 2011.

The levels of the percentage-based single-family goals were the same for both Fannie Mae and Freddie Mac.

Because the multifamily goals are unit-based, and because Fannie Mae has a larger multifamily mortgage purchase program than Freddie Mac, these goals were set at higher levels for Fannie Mae than for Freddie Mac.

 

Read more about Fannie Mae's and Freddie Mac's affordable housing goals.

 

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