FHLB New York.

District overview

Serves New Jersey, New York, Puerto Rico, and the US Virgin Islands, including New York City, one of the country’s largest multifamily rental markets. The Federal Home Loan Bank System, created in 1932 under the Federal Home Loan Bank Act, consists of 11 regional cooperative banks owned by their member financial institutions.

Members of FHLB New York are commercial banks, thrifts, credit unions, insurance companies, and (since 2008) certain community development financial institutions (CDFIs) headquartered in or doing business in the district’s 4 states and territories. Members purchase capital stock in the bank and gain access to advances (collateralized loans), the AHP grant program, the Community Investment Program (CIP), and various other liquidity and community-development products.

Affordable Housing Program (AHP)

Each FHLB is required by statute to contribute at least 10% of its annual net income to the Affordable Housing Program. FHLB New York’s AHP is administered through two channels:

• Competitive AHP: annual competitive grant rounds where member institutions apply jointly with project sponsors. Awards typically range from $10,000 to over $1 million per project, with scoring based on AHP regulatory priorities and FHLB New York-specific scoring criteria. Grants flow to the project as direct subsidy and are usually layered into LIHTC capital stacks.
• AHP Set-Aside programs: non-competitive set-aside funds (typically up to 35% of FHLB New York’s annual AHP allocation) used for homeownership downpayment assistance and other targeted purposes. FHLB New York’s current homeownership set-aside is the Homebuyer Dream Program (HDP) Suite — HDP, HDP Plus, and HDP Wealth Builder. HDP provides direct grants of up to $30,000 per household for down-payment and closing-cost assistance to first-time homebuyers at or below 80% AMI; HDP Plus offers additional assistance to moderate-income first-time homebuyers (over 80% AMI, up to 120% AMI in NY and NJ, and up to 150% AMI in Puerto Rico and the U.S. Virgin Islands); HDP Wealth Builder targets first-generation homebuyers. The Suite replaced the legacy First Home Club (which stopped accepting new enrollments in March 2019). All assistance flows through participating member institutions.

AHP funds are deeply targeted per 12 U.S.C. § 1430(j)(2): owner-occupied AHP must serve households at or below 80% AMI; rental projects must have at least 20% of units occupied by and affordable for very low-income households (≤50% AMI). The FHLB New York AHP scoring criteria typically favor deeper affordability, longer-tenure affordability commitments, and projects serving special-needs populations.

Community Investment Program (CIP)

CIP is FHLB New York’s second community-development arm, providing discounted-rate advances to member institutions for community-purpose lending. Unlike AHP (grants), CIP is a discount on the cost of debt to the member, who then re-lends the funds to qualified projects. CIP is authorized under 12 U.S.C. § 1430(i) and regulated under 12 CFR Part 1292.

CIP advances are non-competitive (continuous availability, subject to overall FHLB advance limits and collateral) and can fund:

• Affordable housing loans (including LIHTC project bridge and permanent debt)
• Small business lending in low- and moderate-income census tracts
• Economic development in distressed communities
• Mixed-use neighborhood revitalization

For practitioners, CIP advances are priced at the FHLBank’s cost of funds — not to exceed the Bank’s cost of issuing consolidated obligations of comparable maturity, taking into account reasonable administrative costs — per 12 CFR § 1292.5(d)(2). The discount vs. standard advance rates depends on the rate environment and any discretionary Discount Fund applied by the bank. See CIP program page for full mechanics.

Other targeted products

FHLB New York also offers district-specific products that may include:

• Letters of credit: bond-credit-enhancement letters of credit used in 4% LIHTC bond deals (improving the credit profile of the project bonds)
• Predevelopment loans: short-term loans to member institutions or directly to qualified non-profit sponsors
• Mortgage Partnership Finance (MPF) or Mortgage Purchase Program: single-family mortgage liquidity products for member banks
• Disaster relief funding: targeted advances for community recovery after federally declared disasters

Member institutions

FHLB New York membership includes the full range of FHLB-eligible institutions. As of recent annual reporting, the district has hundreds of member institutions ranging from large regional banks to community banks, thrifts, credit unions, and CDFIs. CDFI membership has been a growing area since CDFIs became eligible under the Housing and Economic Recovery Act of 2008 (HERA).

For an affordable housing project to access AHP or CIP through FHLB New York, a member institution must serve as the project’s sponsor or financial partner. Projects do not apply directly to the FHLB; they must apply jointly with a participating member bank.

Capital stack fit

FHLB New York’s products fit into affordable housing capital stacks in several places:

• AHP grants in 9% LIHTC deals: AHP awards typically function as soft second loans or grants, providing 5–15% of total development cost. AHP is one of the most reliable gap sources in 9% deal underwriting.
• AHP grants in 4% bond deals: AHP provides similar gap-funding role; eligible to layer with tax-exempt bonds and 4% credits.
• CIP advances on the senior debt: a member bank making a permanent loan to an LIHTC project can fund its loan with a CIP advance, passing on the rate discount to improve project DCR and supportable debt.
• FHLB letters of credit on bonds: in some 4% deals, an FHLB letter of credit on the bond improves the credit rating and reduces project bond debt service.
• Homebuyer set-asides for homeownership conversions: The Homebuyer Dream Program Suite can support homebuyer outreach for LIHTC-to-homeownership conversion deals, subject to first-time-homebuyer eligibility.

Application timing

FHLB New York typically runs its AHP competitive round once per year, with a Notice of Funding Availability (NOFA) published in late winter or early spring, applications due in late spring or early summer, and awards announced in fall. Set-aside programs operate on a rolling basis subject to fund availability. CIP advances are available year-round to member institutions, subject to advance limits and collateral.

For current dates, AHP scoring tables, and application packages, consult FHLB New York’s housing and community development webpage directly. Practitioners should also confirm that their selected member institution has experience with the specific AHP product (some member banks are more active than others).

Post-OBBBA context

P.L. 119-21 (the OBBBA, signed July 4, 2025) did not directly alter the FHLB AHP or CIP statutory frameworks. However, the OBBBA’s permanent 12% LIHTC increase and the reduced 25% bond-financed-by test (for buildings placed in service after Dec 31, 2025 where at least 5% of aggregate basis is financed by bonds issued after that date) materially expand LIHTC deal volume nationally. FHLB New York should expect increased demand for AHP and CIP support as projects in the 4-state region capitalize on the new federal capacity.

Sources & further reading

• FHLB New York primary publications, current AHP Implementation Plan, and CIP guidelines
• Federal Housing Finance Agency (FHFA) AHP and CIP regulations: 12 CFR Parts 1291 and 1292
• Federal Home Loan Bank Act, 12 U.S.C. §§ 1421–1449 (especially § 1430)
• FHFA Annual Report on Affordable Housing Program awards
• AHP overview and CIP overview on this site
• All 11 FHLB districts
• Sources & Attribution — full source catalog

This is educational reference material, not legal, tax, financial, or investment advice. FHLB district program details change with each AHP cycle; consult FHLB New York directly for current rules and consult qualified counsel before any transaction. See Disclaimer.