Empowering Communities: FHLBank Chicago's Innovative Approach to Affordable Housing and Economic DevelopmentThe Federal Home Loan Bank of Chicago (FHLBank Chicago) has announced its preliminary and unaudited financial results for the third quarter of 2024, showcasing its commitment to addressing the affordable housing and community investment needs of its members and the communities they serve. The bank's financial strength has enabled it to innovate and offer a range of products and programs that aim to tackle the barriers to equitable homeownership and the availability of affordable housing.

Unlocking Homeownership Opportunities and Revitalizing Communities

Downpayment Assistance and Affordable Housing Grants

FHLBank Chicago's Downpayment Plus® (DPP®) Program has disbursed more than $30 million through the third quarter of 2024, providing downpayment and closing cost assistance to over 3,000 homebuyers in partnership with 202 member financial institutions. The bank expects to award over $47 million in grants through its 2024 AHP General Fund to support affordable housing projects and developments later this month.

Affordable Financing for Housing and Economic Development

FHLBank Chicago offers Community Development, Housing, and Small Business Advances at below-market rates to help members fund affordable housing and economic development initiatives in their communities. Over $1.4 billion was funded in these advances through the third quarter of 2024, supporting the creation or preservation of over 7,500 housing units and more than 7,000 jobs.

Innovative Community Impact Advance Pilot Program

The newly established Community Impact Advance Pilot Program provides $50 million in subsidies to discount the rate on advances by up to 200 basis points, enabling members to further support affordable housing and economic development projects. Over $250 million was funded in Community Impact Advances through the third quarter of 2024.

Promoting Equitable Housing Lending and Sustainable Homeownership

In addition to its existing programs, FHLBank Chicago has announced new initiatives to facilitate more equitable housing lending and sustainable homeownership, further demonstrating its commitment to addressing the diverse needs of its members and the communities they serve.

Financial Highlights: Navigating Economic Challenges with Resilience

Despite the complex economic environment, FHLBank Chicago's financial strength has enabled it to continue providing reliable, short-term liquidity and long-term funding to support housing finance and community investment. The bank's net income for the third quarter of 2024 was $130 million, with a notable increase in noninterest expense driven by its expanded contributions to housing and community development initiatives.As FHLBank Chicago navigates the evolving economic landscape, it remains steadfast in its mission to empower its members and the communities they serve. By combining longstanding programs with new innovative initiatives, the bank is poised to make a meaningful impact on affordable housing and community investment needs, fostering inclusive and vibrant neighborhoods across Illinois and Wisconsin.