The Federal Home Loan Bank of Chicago (FHLBank Chicago) has announced its Low-Income Housing Tax Credit (LIHTC) Collateral Pilot Program, which offers its members a higher loan-to-value ratio on their pledged collateral for up to $300 million in qualified mortgage loans for LIHTC multifamily housing projects.
While all FHLBank Chicago members are eligible, up to $200 million of LIHTC Collateral Pilot Program funds are reserved for members with assets under $1.46 billion, including CDFIs. The program will increase 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 cooperatives.
“Our members are working to address affordable housing needs and gaps to serve and improve their communities,” said Michael Ericson, President and CEO of FHLBank Chicago. “Our new LIHTC collateral pilot program increases the value of this important collateral asset class to increase available funds for LIHTC loans in our district, provide much-needed liquidity for affordable housing that benefits low-income individuals and families, and fulfills our mission.”
