Wednesday, February 23, 2011

Two Kentucky NeighborWorks Groups Approved for FHLBank Membership

Two Kentucky NeighborWorks organizations, which operate as community development financial institutions (CDFIs), were recently approved for membership at the Federal Home Loan Bank of Cincinnati (FHLBank). Only a handful of CDFIs have joined the FHLBank system nationally, according to FHLBank. Membership in the FHLBank will provide the organizations with a source of low-cost funding to support their community development initiatives, as well as access to funds from the FHLBank’s Affordable Housing Program.

Community Ventures Corporation (CVC) of Lexington was approved in November for membership by the bank. The Federation of Appalachian Housing Enterprises (FAHE) of Berea, Kentucky, was approved for membership at FHLBank this month.

“Achieving FHLBank membership is a significant milestone for FAHE, because it will help us reach more people in Appalachian communities with superior financial products,” said Jim King, chief executive officer and president of FAHE. View news release.

In January 2010, the Federal Housing Finance Agency implemented provisions of the Housing and Economic Recovery Act of 2008 (HERA) that permitted qualifying CDFIs to become members of a Federal Home Loan Bank.