Each Bank includes an Advisory Council and Board of Directors, both of which allow participation by community groups and local government. The FHLBanks are regulated by the Federal Housing Finance Board. Since 1989, the FHLBanks have operated the Affordable Housing Program, which helps nonprofits finance the purchase, construction, or rehabilitation of more than 235,000 housing units for both rental and homeownership opportunities. Nonprofit developers have found the AHP funds to be a relatively flexible source of financing that they use as a private match with tax credits, CDBG, HOME, or other government funds. The FHLBanks offer additional programs to help CDCs and other entities access loan funds.
Some banks offer subsidy programs for economic development projects.
In the past year, some Banks have created pilot projects to encourage more community economic development deals. The CIP provides reduced lending rates for nonprofits doing community economic development. Although some CDCs have accessed CIP funds, it has been difficult. CDCs find the adjusted interest rate, even with the reduction, too high to be affordable for the project, unless it is subsidized by another program like the USDA's Rural Housing Section 504 program. However, the CICA concept could greatly help economic development projects, especially if the Bank offers a discount fund.