FHLBs Shut Out CUs From Affordable Housing Funds

WASHINGTON - Four Federal Home Loan banks awarded more than $30 million in affordable housing grants to members over the last few weeks-but not a cent of it to their credit union members.

Representatives of the FHLBs-in Boston, Pittsburgh, Cincinnati and Dallas-said the awards were reflective of the applications they received for the funds, and not the result of any bias by the directors, none of whom represent credit unions.

The lone FHLB to award funding to credit unions so far this year was the San Francisco Bank, which awarded just over $1 million of its $34.7 million AHP funds to credit union members. The 12 FHLBs are the largest source of affordable housing funding in the country and provided more than $265 million in such grants last year.

Geoff Bacino, former NCUA Board member who now sits on the FHLB regulatory board, the Federal Housing Finance Board, said the FHLBs generally fund about 60% of the affordable-housing applications they receive, but few are from credit unions.

There are more than 1,000 credit union members of the various FHLBs.