This report provides an in-depth look at the FHLBank System’s targeted mission activities—the Affordable Housing Program (AHP), the Community Investment Program (CIP), the Community Investment Cash Advance (CICA) program, the Acquired Member Asset (AMA) program, and voluntary initiatives—that support affordable housing and community development. The study documents activities and trends and introduces a framework to estimate their economic value. 

Our analysis illustrates how FHLBank mission programs generate economic ripple effects. Under base-case assumptions, mission-oriented programs generated an estimated $47.1 billion in economic impact between 2015 and 2024, with impact estimates ranging from $16.5 billion to $94.8 billion under conservative and high-end scenarios, respectively. 

Why This Matters

The FHLBank System has a broad mission to provide reliable liquidity and to support housing and community development. Policymakers and stakeholders are increasingly interested in how FHLBank programs advance housing affordability, address local community needs, and fulfill the system’s public purpose.

What We Found

• FHLBanks exceed required mission spending. The FHLBank System must allocate 10 percent of prior-year earnings to the AHP but regularly contributes more than 15 percent of earnings, with the additional funding allocated to AHPs and targeted voluntary funding programs in each FHLBank district.
• The AHP General fund reaches very low-income renter households. In 2024, 71 percent of assisted renters were very low income (earning up to 50 percent of the area median income), far surpassing statutory targeting thresholds.
• The AHP General Fund focuses on affordable rental housing in metropolitan areas. In 2024, more than 90 percent of the AHP General Fund went to rental housing. Project structures (number of units) are generally smaller than the large multifamily projects supported by Fannie Mae and Freddie Mac, reflecting the program’s role in small multifamily rental properties (with 5 to 49 units).
• Set-Aside programs heavily serve first-time buyers. Nearly 88 percent of set-aside funding supported first-time homebuyers in 2024, well above the one-third requirement.
• Voluntary programs address gaps left by statutory tools. In recent years, voluntary initiatives have grown and enabled FHLBanks to respond flexibly to local housing and community needs.
• CIP and CICA complement the AHP’s housing focus. In contrast to the AHP General Fund, CIP primarily finances owner-occupied housing, and CICA supports economic development in low- and moderate-income communities.
• AMA programs support community lenders’ liquidity. Mortgage purchase programs are widely used by community-based depository institutions, though retained credit risk leads FHLBanks to acquire loans with stronger borrower profiles.

How We Did It

This document synthesizes program information, funding trends, and institutional data on FHLBank mission activities. The analysis reviews statutory requirements, program structures, and recent funding allocations to assess the scale and composition of mission investments. It also examines trends over time to identify shifts between mandatory and voluntary initiatives and to describe how the FHLBank System’s mission engagement has evolved. To estimate the economic impact of FHLBank mission activities, this report adopts a scenario-based framework that accounts for differences across these diverse program types.