On November 15, the Federal Home Loan Bank of Dallas (FHLB) announced that it would be awarding $18.5 million in Affordable Housing Program (AHP) subsidies.
Through partnerships with its member financial institutions, they are funding over two thousand housing units in their five-state district. In Texas alone, $7.5 million will be used to create 986 units.
In a press release, the President and CEO of FHLB, Sanjay Bhasin said, “FHLB Dallas member institutions play an important role in financing affordable housing initiatives in their communities. The AHP allows our members to provide millions of dollars across our district to improve living conditions for those who need it most.”
FHLB returns ten percent of its profits each year to the communities of its member institutions. These annual returns come in the form of AHP subsidies. The subsidies are then used to rehabilitate old homes, create new housing units, help with down payments and closing costs for first-time home buyers, and more.
Beatrice Kelly, the senior vice president & director of Community Development Lending for Comerica Bank, said the partnership with FHLB has helped them for the past several years.
“Comerica Bank is honored to be part of the Affordable Housing Program as we work to raise expectations and make impactful investments in the communities we serve through strategic partnerships,” Kelly said in the press release. “As a longtime member of FHLB Dallas, we have helped create economic opportunity in areas that need our support. We are grateful for the program and its ongoing commitment to advancing financial inclusion.”
Between 1990 and 2020, FHLB Dallas has contributed $323 million in AHP and Homeownership Set-Aside Programs, the press release states. These include a disaster recovery program, a down payment assistance program, and a program that modifies homes for senior citizens and those with disabilities.
Austin, Corpus Christi, Houston, Kingsville, and Welasco will all benefit from AHP funding. Other states that will receive funding from these programs include Arkansas, Louisiana, Mississippi, New Mexico, California, and North Carolina.
According to another FHLB Dallas press release, they awarded a $750,000 AHP subsidy to a transitional housing facility in Louisiana. Refinery Mission provides housing for men transitioning back into society from hospitals, rehab, jail, and mental health facilities.
On November 19, the subsidy allowed them to break ground for the new additions to the facility.
Johnny Carriere Jr., the executive director at the Refinery Mission, called the funds “critical.”
“The funds are very critical to this project,” Carriere said in the press release. “The Affordable Housing Program is a game-changer and a great tool that allows us to serve people who need our help. The subsidy will allow us to increase our intake and open the door for emergency beds for guys who are in more vulnerable situations. It’s hard for me to describe how appreciative we are for St. Landry Homestead FSB and FHLB Dallas’ commitment to the community.”
The subsidy was made possible with FHLB Dallas member partner St. Landry Homestead Federal Savings Bank.
