Supporting Community Development
Federal Banks also enter the market and directly help their member institutions through advances (or loans) that allow members to fund affordable housing while maintaining profit margins and minimizing risk. Members can obtain discounted advances that are priced up to 10 basis points below regular commercial advances to support qualified affordable housing development. These programs in turn are offered to developers and home builders to create an incentive for the construction of low cost housing. FHLBI’s Community Investment Program (CIP) advances and letters of credit are the most economical way for FHLBI members to borrow long-term funds to support local economic development. CIP advances support affordable housing projects, commercial and economic development, and mixed-use developments.
Supporting Affordable Housing
Twenty-four projects received Affordable Housing Program grant awards in 2016. Total funds awarded for this round was $9,529,875. Eighty percent of awarded projects will use green building elements in their design and half of the projects will seek some level of green certification.Their programs include help first-time homebuyers fulfill the dream of owning a home, help veterans purchase or rehabilitate a home, and provide much needed resources to help developers create affordable housing for very low- to moderate- income families.