The first member spotlight of 2011 is the Federal Home Loan Bank of Indianapolis (FHLBI).
The FHLBI is one of 12 Federal Home Loan Banks in the United States. These are privately funded financial organizations created by congress to provide access to low cost funding for its member financial institutions. There are over 200 financial institutions that are FHLBI members in Michigan, representing and serving many rural areas.
The Community Investment Program at the FHLBI specifically helps its member’s communities experience economic growth. They offer “advances”, or low priced funds to help its members that are engaged in community economic development activities in low and moderate income areas. These funds allow lenders to make loans they would not be able to otherwise make.
FHLBI’s Affordable Housing Program offers grants through its members to assist in the development and rehabilitation of affordable housing projects, in partnership with local housing developers. In 2011, a single competitive application round is anticipated, with applications due in April.
In 2009 and 2010, the FHLBI awarded funds to 21 Affordable Housing projects in Michigan ranging from $50,000 to $500,000 including:
- Aid on the construction of 50 affordable housing units for low income seniors in Gaylord.
- The Habitat for Humanity of Marquette County has received funds to aid in the construction of 4 homes in Marquette County.
- Renovation of a community college campus building to house teenage girls referred by the court systems in Alpena. Programs will focus on dealing with personal, home, school, peer and community issues.
- 24 rental units for physically disabled in Hancock, as well as 5 reserved for homeless
Answers to questions about the funding application process can be found here.
Through their Homeownership Initiatives, the FHLBI also offers funds for member financial institutions to offer assistance to individual homeowners and homebuyers directly. The Homeownership Opportunities Program helps offset the high down payment and closing costs for potential home buyers and Neighborhood Impact Program assists existing homeowners with rehabilitation assistance to maintain their homes. The member financial institution can offer income eligible households matched funds of up to 3 to 1.