The Federal Home Loan Bank of Cincinnati (FHLBank) is an $88 billion, triple-A rated regional wholesale bank providing financial services for residential housing and economic development to member institution stockholders located in the Fifth FHLBank District of Kentucky, Ohio, and Tennessee. The FHLBank has contributed $274 million for the creation of nearly 43,300 units of lower-income housing through its Affordable Housing Program, established in 1989. The FHLBank System, including 12 district banks and 8,100 members, was chartered in 1932 by the U.S. Congress to promote housing finance but is wholly owned by its member institution stockholders and does not use taxpayer dollars.

The FHLBank sets aside 10 percent of net earnings annually for the congressionally-established Affordable Housing Program (AHP) and Welcome Home Program, making housing affordable to consumers at or below 80 percent of area median income. AHP funds are awarded to FHLBank members through semiannual competitions for the acquisition, rehabilitation, or new construction of residential housing units. Welcome Home funds are awarded to reduce homebuyers’ downpayment and closing costs.

The FHLBank Board of Directors established two voluntary homeownership programs, renewable on an annual basis. Both programs were approved for $2.5 million, each, in 2008. American Dream Homeownership Challenge, established in 2003, provides competitive grants to members developing innovative homeownership opportunities targeted toward minorities and persons with special needs. Preserving the American Dream, established in 2008, is a fund to help homeowners at risk of foreclosure; FHLBank members partner with qualifying nonprofit housing counseling agencies that provide foreclosure/loss mitigation counseling, up to $3,500 per household.

For more information on the Federal Home Loan Bank of Cincinnati, contact the Public Affairs Department at (513) 852-7084.