FHLBank Chicago Announces $300M LIHTC Collateral Pilot Program

The Federal Home Loan Bank of Chicago (FHLBank Chicago) announced its Low-Income Housing Tax Credit (LIHTC) Collateral Pilot Program, which provides members with increased lendable value on their pledged collateral for up to $300 million of qualifying mortgage loans on LIHTC multi-family housing projects.

While all FHLBank Chicago members are eligible to participate, up to $200 million of the LIHTC Collateral Pilot Program funding will be reserved for members with assets under $1.46 billion, including CDFIs. The program will amplify and incentivize lending to support affordable housing for low-income individuals and families through member banks, credit unions, insurance companies, community development financial institutions (CDFIs), and eligible housing associates.

“Our members are working to address needs and gaps in affordable housing to serve and improve their communities,” said Michael Ericson, President and CEO, FHLBank Chicago. “Our new LIHTC Collateral Pilot Program enhances the value of this important collateral asset class to increase available funding for LIHTC loans in our district, provides much-needed liquidity for affordable housing to benefit low-income individuals and families, and delivers on our mission.”