Urban Institute Study Finds FHLBanks Deployed $147.2 Billion in Targeted Housing and Community Investment
New independent research by the Urban Institute, a nationally respected, nonpartisan think tank, demonstrates that the Federal Home Loan Banks’ (FHLBanks’) housing and community development programs are delivering substantial, measurable benefits for households, communities, and local economies nationwide. From 2015 through 2024, the FHLBanks deployed $147.2 billion across a range of housing and community programs and financing tools. This activity generated an estimated $47 billion in direct economic impact under base-case assumptions.
Study Findings
This is the third in a series of studies by the Urban Institute. The two previous studies examined how FHLBank liquidity supports financial stability and expands lending by members. This latest study completes the picture by showing how that capacity is ultimately delivered through targeted housing and community development programs. It examines the impact of the System’s mission-oriented activities, including the Affordable Housing Program (AHP), the Community Investment Program (CIP), the Community Investment Cash Advance (CICA), Acquired Member Asset (AMA) programs and a growing set of voluntary initiatives.
Highlights of the study include:
- Across all six targeted housing and community mission-oriented programs, the FHLBanks deployed $147.2 billion in funding between 2015 and 2024, generating an estimated $47 billion in direct economic impact under base-case assumptions.
- Impacts range from $16.5 billion to $94.8 billion under conservative and high-end scenarios.
- The FHLBanks consistently exceed their statutory Affordable Housing Program contributions, contributing roughly 15% of their net earnings annually in recent years.
- The AHP General Fund contributed $3.8 billion between 2015 and 2024, supporting production of nearly 250,000 housing units, with a strong focus on rental housing.
- 88.3% of AHP Set-aside funds went to first-time homebuyers in 2024, and average grant sizes doubled from $7,052 (2015–2023) to $14,173 in 2024.
- Between 2015 and 2024 the FHLBanks provided nearly $70 billion in CIP advances and CICA lending, supporting mission-aligned housing, small businesses, and community development nationwide.
- Between 2015 and 2023, FHLBanks purchased $71.6 billion in mortgage loans through the AMA programs, providing liquidity that supports ongoing mortgage lending and access to housing finance. The AMA programs primarily support community financial institutions where they retain the option to service the loans and maintain their valuable customer relationships.
- FHLBank voluntary programs are funded above and beyond statutory AHP contributions, are growing in importance, and demonstrate that the FHLBank System is proactively choosing to do significantly more and responding quickly to emerging or local needs.
The Council of Federal Home Loan Banks commissioned the series of Urban Institute studies to provide independent measurement of how FHLBank liquidity supports financial stability and lending, and how those activities ultimately power housing and community investment through targeted programs.
The Urban Institute analysis draws on FHLBank program data, regulatory filings, and project-level information to assess the scale, targeting, and economic impact of the System’s housing and community investment activities.
