CONGRESS

FHLBank Community Investment
and Community Investment Cash
Advance Programs
The FHLBanks’ Community Investment Programs (CIP)
offer advances to FHLBank members at the cost of the
FHLBanks’ consolidated obligations of comparable
maturities, taking into account reasonable administrative
costs. CIP funds may assist the financing of housing
for households with incomes at or below 115 percent of
area median income. CIP funds also may be used for economic
development projects in low- and moderate-income
neighborhoods or that benefit low- and moderate-income
households. In 2015, the FHLBanks issued approximately
$3.2 billion in CIP advances for housing projects and
approximately $60.5 million for economic development
projects.
The FHLBanks’ Community Investment Cash Advance
Program (CICA) offers low-cost, long-term advances or
grants for members and housing associates, such as state
and local housing finance agencies and economic development
finance authorities, to finance targeted economic
development projects. In 2015, the FHLBanks issued
approximately $4 billion in CICA advances for community
development projects such as commercial, industrial and
manufacturing projects, social services, and public facilities.
CDFI Membership in FHLBanks
FHLBank Housing Goals
Under FHFA’s regulation (12 CFR Part 1281), the
FHLBanks are subject to housing goals requirements based
on the dollar volume of single-family loans purchased by
the FHLBanks from their members through their Acquired
Member Assets (AMA) programs. The housing goals measure
the extent that the FHLBanks’ AMA programs serve
low- and very low-income families and families residing in
low-income areas. The housing goals are generally consistent
with the single-family housing goals for Fannie Mae
and Freddie Mac, but they take into account the unique
characteristics of the FHLBanks.
In order for a FHLBank to be subject to these housing
goals, the total unpaid principal balance of loans purchased
through the AMA programs by the FHLBank must
exceed $2.5 billion in a given year. This volume threshold
ensures that a FHLBank has sufficient mortgage purchase
volume for a housing goals assessment. In 2015, one
FHLBank exceeded the $2.5 billion threshold, which is
the first time this threshold has been exceeded since the
regulation went into effect. Under the structure of FHFA’s
current regulation, FHFA must wait until HMDA data is
available to determine whether the housing goals were
met at this FHLBank. FHFA is also in the process of evaluating
alternatives to the current FHLBank housing goals
requirements that would provide FHLBanks with advance
notice of and greater certainty about each year’s housing
goals expectations.
There are two types of Community Development
Financial Institutions (CDFIs) that are eligible for membership
in a FHLBank: federally insured depositories and
non-depository CDFIs. Federally insured depositories,
such as CDFI banks, have long been eligible for membership.
More recently, HERA opened FHLBank membership
to non-depository CDFIs that are certified by the Treasury
Department’s CDFI Fund, such as community development
loan funds.
At the end of 2015, 41 non-depository CDFIs were members
of the FHLBank System (Figure 20).
52 FEDERAL HOUSING FINANCE AGENCY