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Affordable Housing & Community Development

​Federal Home Loan Bank System

 

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.

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 2013, 8 of the 12 FHLBanks purchased whole loans through those programs.

The Programs

Affordable Housing Program

From 1990, when the AHP was authorized, through 2013, the FHLBanks awarded over $4.4 billion in AHP subsidies,  assisting over 724,000 housing units.

Community Investment Program

In 2013, the FHLBanks issued approximately $2.7 billion in Community Investment Program advances for housing projects and approximately $25 million for economic development projects.

Community Investment Cash Advance Program

In 2013, the FHLBanks issued approximately $2.6 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

 

The Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008, requires 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.

Housing Goals for 2015 - 2017

On August 19, 2015, FHFA published a final rule establishing housing goals for calendar years 2015 - 2017. (See 8/19/2015 news release and housing goals chart.)

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

For the first time, the final rule establishes a new housing subgoal for financing units for low-income families living in small (5- to 50-unit) multifamily properties.

"The Size of the Affordable Mortgage Market:  2015 - 2017 Enterprise Single Family Housing Goals"  details the methodology used to estimate the market size for 2015 - 2017 Enterprise Single-Family Housing Goals.

 

Housing Goals for 2012 - 2014

On November 13, 2012, FHFA published a final rule establishing housing goals for calendar years 2012-2014. 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.

"Market Estimation Model for the 2012 - 2014 Enterprise Single-Family Housing Goals: Final Rule" documents the methodology used to estimate market size for 2012 - 2014 Enterprise Single-Family Housing Goals. 

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

© 2015 Federal Housing Finance Agency