Industry experts believe that one way to prevent the spread of Atlanta foreclosed homes for sale is to make affordable housing accessible to everyone. Several branches of Federal Home Loans Bank (FHLBank) have made it their commitment to provide affordable housing to promote homeownership in the current economy.
The FHLBank of Atlanta is one of the district banks that launched the AHP which has become a critical and reliable gap financing source for developers of affordable houses. AHP is a major source of grants for affordable housing projects in the country.
Since its inception 20 years ago, the program has provided over $3 billion grants to various projects across the country, including helping to construct over 623,000 affordable houses, with 391,000 of them for low-income families.
At FHLBank of Atlanta, scoring incentives has been implemented this year for those applicants that have demonstrated their capabilities to secure funds that will leverage AHP funding. The bank also created a scoring incentive designed to reward projects that have become part of structured and coordinated effort to prevent the spread of Atlanta foreclosed homes for sale.
Industry experts said that the initiative is a reflection of the commitment of the bank to make AHP a part of the wide array of solutions designed to address the problem with affordable housing.
Last year, the FHLBank in Atlanta awarded a total of $46.3 million AHP grants to about 89 projects composed of 4,514 housing units. The grant awarding is based on a competitive cycle. Furthermore, nearly $17.7 million were granted to first-time homebuyers under the AHP.
Meanwhile, an Affordable Housing Finance survey of 12 district banks of the FHLBank showed that five units are experiencing a shortage in AHP funds this year. Industry experts said that this trend could continue until next year.
According to study data, the AHP funding posted a 23 percent drop from last year. Normally, district banks allocate 10 percent from their yearly net income for AHP funds. As a result, the funding for AHP can fluctuate, with the availability of which dependent on the bank’s profits. This means that if the bank experienced a drop in profits, it would have less money to fund its affordable housing program.
back to top
Comments on this entry are closed.