CINCINNATI, Sept. 21, 2005 (PRIMEZONE) -- The Federal Home Loan Bank of Cincinnati (FHLBank) Board of Directors has approved the establishment of a $15 million fund over a two-year period to provide housing assistance to persons displaced by Hurricane Katrina into the FHLBank district of Kentucky, Ohio and Tennessee. All three states are seeing an influx of residents from Hurricane Katrina. More than 33,000 will be temporarily or permanently relocated there, according to the American Red Cross and state officials, creating immediate and long-term needs for housing.
"The mission of the FHLBank is to support the availability and affordability of housing through our member banking institutions," said Charles "Bud" Koch, chairman, Charter One Bank, N.A., Cleveland, and chairman, FHLBank board. "Given the success of our affordable housing delivery system, our board determined we are uniquely qualified to make a real difference in the lives of thousands of displaced residents in critical need of permanent housing within our FHLBank District."
The voluntary $15 million Katrina housing assistance fund is over and above the congressionally established Affordable Housing Program 10 percent set-aside of $25 million for 2005. Housing organizations and social service agencies will partner with the FHLBank's 740 member financial institutions in applying for Katrina grant funds. The grants may be used for the acquisition, rehabilitation or new construction of rental or owner-occupied housing.
"We are able to quickly mobilize our resources and those of our members using existing AHP and American Dream Homeownership Challenge programs as models," said David Hehman, president, FHLBank. "The impact of this natural disaster has touched communities across the nation, and we are proud to be among the many groups reaching out to help residents rebuild their lives."
The FHLBank is an $81 billion congressionally chartered wholesale regional bank providing financial services for residential housing and economic development to 740 member financial institutions located in Kentucky, Ohio and Tennessee. It has contributed $200 million for the creation of 34,000 units of lower-income housing through its Affordable Housing Program since 1990, and $4 million to help 658 persons become first-time homebuyers through the American Dream Homeownership Challenge. The FHLBank System includes 12 district Banks, is wholly owned by its 8,100 member institution stockholders and does not use taxpayer dollars.