FHLBank Chicago Opens Applications for $49 Million Affordable Housing Program (AHP) with $2 Million Per Project Grant

Applications for the Federal Home Loan Bank of Chicago’s (FHLBank Chicago) 2024 Affordable Housing Program (AHP) General Fund are now open. This year, the AHP General Fund’s available subsidy per-project has doubled from $1 million to $2 million, reflecting FHLBank Chicago’s commitment to invest in the development and rehabilitation of affordable housing across Illinois and Wisconsin.

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Mark Angelini and Brian Campbell, of Mercy Housing Lakefront, discuss the newly renovated Carlton Apartments in Chicago’s Uptown neighborhood, which provide 68 apartments of permanent supportive housing for adults, including many who have experienced chronic homelessness and people with disabilities. The historic building completed renovation in 2022 with support from a grant through FHLBank Chicago’s Affordable Housing Program (AHP). (Photo: Business Wire)

With nearly $49 million allocated toward its annual AHP General Fund and increased per-project funding, FHLBank Chicago aims to empower grantees to address the critical need for affordable housing in member communities. These forgivable AHP grants subsidize the acquisition, new construction, and rehabilitation of affordable rental or owner-occupied housing.

“FHLBank Chicago is taking an important step to double the maximum subsidy for AHP projects as affordable housing challenges persist,” said Katie Naftzger, Senior Vice President, Community Investment Officer, FHLBank Chicago. “Doubling our maximum subsidy level, coupled with the highest annual program allocation in program history, will amplify our impact and enable communities to undertake more substantial and transformative housing initiatives.”

Since 1990, FHLBank Chicago has awarded more than $500 million in AHP grants, providing housing to over 70,000 households. AHP grants are made possible through the collaboration of FHLBank Chicago’s member institutions with developers, community organizations, public housing authorities, and tribal governments.

As an example, FHLBank Chicago has supported Mercy Housing Lakefront, the geographic business center for Mercy Housing, Inc. serving Illinois, Wisconsin, and Indiana, through 12 AHP General Fund projects since 1997. In 2020, Mercy Housing Lakefront was awarded a $900,000 AHP grant through FHLBank Chicago member, CIBC Bank USA, to rehab the Carlton Apartments.

“We are grateful for AHP funding from FHLBank Chicago, which has been instrumental to the construction of projects that provide quality of-life improvements for our residents,” said Mark Angelini, President of Mercy Housing Lakefront. “The renovation of the historic Carlton Apartments building provided modern amenities like a computer lab and Wi-Fi, meaning residents can access healthcare, employment, and benefits resources. The AHP grant is a vital resource to deliver permanent supportive housing that is in short supply to formerly homeless and low-income Chicago residents.”

Applications for the AHP General Fund opened today and will be accepted through June 14, 2024 (5:00 PM CDT). Eligible members and project sponsors are encouraged to apply jointly through AHP Online, FHLBank Chicago’s website. Comprehensive support, including workshops and technical assistance, is available to guide applicants through the process.

About the Federal Home Loan Bank of Chicago

FHLBank Chicago is a regional bank in the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to ensure access to low-cost funding for their member financial institutions, with a focus on providing solutions that support the housing and community development needs of members’ customers. FHLBank Chicago is a self-capitalizing cooperative, owned by its Illinois and Wisconsin members, including commercial banks, credit unions, insurance companies, savings institutions and community development financial institutions. To learn more about FHLBank Chicago, please visit fhlbc.com.

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