Banks Joining A Subsidy Plan

Seven commercial banks will be among the recipients when the Federal Home Loan Bank System doles out the next round of subsidized loans under the congressionally mandated affordable housing program.

The Federal Housing Finance Board, which oversees the bank system, last week announced $33.2 million in affordable housing program loans in the first of two funding rounds that will total $59 million this year. The loans will be distributed to banks and thrifts by the regional Federal Home Loan Banks.

This marks the first time that commercial banks have borrowed under the year-old program. The loans will leverage $429.9 million in housing construction, rehabilitation, and mortgage financing, creating 7,895 housing units. Bank recipients include American National Bank, Hamden, Conn., and Vermont National Bank, Brattleboro, Vt.

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