Advisory Council Annual Report Chair’s Letter
To the FHLBank Atlanta Community:
In partnership with its shareholder financial institutions, FHLBank Atlanta (Bank) continued to achieve its housing finance mission and strengthen local communities by facilitating the development and preservation of affordable housing in 2016.
The FHLBanks’ Affordable Housing Program (AHP) remains one of the largest and most critical sources of private-sector financing for housing serving very low-, low-, and moderate-income households.Since the AHP’s inception in 1990, FHLBank Atlanta has awarded more than $891 million in grants to support the development of over 113,000 rental and ownership units and to assist 25,800 households purchase or rehabilitate their homes. The funds have helped stimulate $10 billion in single and multifamily residential real estate development and facilitate more than $2.6 billion in first mortgage originations by the Bank’s shareholder institutions. These results would not be possible without the partnerships between the Bank and its shareholder institutions to deliver these funds to communities.
The Affordable Housing Advisory Council’s (Council) primary role is to provide advice to the Bank’s management and board of directors regarding ways in which the Bank can enhance the effectiveness of its housing finance and community lending mission. The Council comprises 15 representatives from a diverse group of community and nonprofit organizations actively involved in providing or promoting low- and moderate-income housing and community lending within the Bank’s district.
Active Engagement with Bank Management and the Board of Directors
In addition to fulfilling its regulatory role, the Council helps to ensure success for the Bank and its stakeholders through active engagement and collaboration with the Bank’s management team and the board of directors. For example, in 2016 the Council was engaged with AHP Modernization and agreed to support the System-wide letter endorsing a strategic plan approach to deploying AHP and using funding pools and other project selection processes as a deployment methodology. The Council also took a leadership role in implementation and evaluation of the four developer feedback sessions and the developer/shareholder “Meet and Greet” receptions the Bank conducted to ensure that the developer community in the district is engaged with AHP Competitive. The Council also worked collaboratively with the board by participating in the board’s Housing Finance Reform Task Force.
Outreach and Education
As an outgrowth of its active engagement with management and the board, in 2016 Council members also served an important and larger role in outreach and communicating the value of the Bank’s community investment products to stakeholders. In 2016, the Bank hosted, sponsored, or participated in 58 outreach events throughout its district. This outreach offered the opportunity for the Bank to continue educating its stakeholders on the value of AHP to communities, developers, and lenders. These events also provided valuable data on market needs and feedback on how AHP can better support housing demands in local communities. This data and feedback are reflected in the Bank’s Community Lending Plan. Council members were engaged in a number of these events.
AHP as a Tool to Advance CRA Objectives
Outreach with the Bank’s shareholder institutions in 2016 continued to focus on integrating AHP into core business strategies and linking business development and compliance objectives through the Bank’s community products. Council members participated in the Bank’s Community Reinvestment Act (CRA) business development forums, which brought together representatives from the Bank’s shareholder institutions and shareholders’ regulators, including the Federal Reserve, FDIC, and OCC. These forums are core components of the Bank’s CRA Center of Excellence consultative services, which seek to help shareholders achieve both business development goals and positive regulatory exam outcomes. The Bank hosted other shareholder CRA-related events focused on letters of credit opportunities, community development financial institutions, and more.
Through the valuable feedback and examples of success garnered at these events, Council members continue to gain valuable insights that help us provide guidance to the Bank on how its community investment products can best address development needs in the district. Over the last decade, the Bank significantly expanded its product offering under AHP, and today, it has one of the broadest and deepest suites of AHP products in the FHLBank System. Outreach into communities and discussions with stakeholders helped drive this product development. Ongoing outreach into our local communities will help ensure that the Council and Bank continue to move forward in ways that address evolving affordable housing challenges in the Bank’s district.
Thank you for your partnerships with FHLBank Atlanta and the Affordable Housing Advisory Council. We look forward to working with you in 2017 and beyond as we continue to serve the affordable housing finance needs in the Southeast.
John B. Rucker
Chair, 2016 Affordable Housing Advisory Council