WASHINGTON - The Federal Housing Finance Board approved $13.9 million in loan subsidies as part of its 1992 affordable-housing program, the board said.
The loans are made to banks and thrifts at subsidized rates so they can finance affordable housing for low- and moderate-income households.
The subsidies will be leveraged into $172.8 million of loans financing the purchase, construction, or rehabilitation of 3,751 units of housing, the board said.
Of the projects being financed, 70% will be for very-low-income households, the board said.
Projects include 31 developments in rural areas, 37 that contain units for the homeless, 11 with single-room-occupancy units, and 29 with special housing for the handicapped. Fifty-seven percent of the housing units will be rental units, with the rest occupant-owned.
Home Loan Banks' Role
The board operates the affordable-housing program as a competition among its 12 districts. It and local banks evaluate applications using a 100-point scoring system.
The Federal Home Loan Bank System must spend at least $50 million annually on the affordable housing program - or 5% of net income if that is greater. In 1991, it contributed $59 million, based on the prior year's net income.
That contribution is to increase to the greater of 6% of net income or $75 million in 1994, and $10 of net income or $100 million in 1995 and subsequent years.