In 2018, the Gathering Tree in Springfield, Missouri, opened the doors at the first Eden Village, consisting of 30 manufactured homes that provide permanent, supportive, affordable and sustainable housing in a gated community to the chronically disabled homeless. Residents have access to a full range of supportive services such as case management, mental health, medical and dental, financial literacy and basic budgeting, employment and job skills. A key funding source for the project was a $750,000 grant from the Affordable Housing Program (AHP) facilitated by Central Trust Bank. In total, Eden Village has received $2.5 million in AHP grants for three phases of the project.
The Affordable Housing Program is part of the Federal Home Loan Bank of Des Moines (FHLB Des Moines or the Bank) and is an extension of the bank’s mission as a financial cooperative to support institutions and enterprises that improve quality of life and create prosperity in the communities they serve. Every year, the Federal Home Loan Bank of Des Moines sets aside 10% of our earnings to support the affordable housing program. Since the program’s inception in 1990, more than $895 million of private funds have been provided through grants to create affordable housing opportunities for over 127,000 families and individuals. In 2023, FHLB Des Moines gave an additional $25 million back to our members to invest in their communities.
The Affordable Housing Program provides assistance in two ways. The first is through the Competitive Affordable Housing Program. This specific program supports projects that include the purchase, construction or rehabilitation of affordable home ownership or rental housing units. The program also promotes partnerships between our member financial institutions and local housing providers to apply for grant funds. Applications for the competitive program can be made for varying amounts based on project need and are accepted, then awarded on an annual basis. In 2024, housing providers can apply for a grant of up to $3 million for their housing project.
Second, affordable housing funds are also used to help with down payment and closing costs for income-eligible owner-occupied households through Home$tart® and the Native American Homeownership Initiative (NAHI). Home$tart and NAHI allow eligible households to receive $15,000 and $25,000, respectively, for down payment and closing cost assistance. Since 1990, more than $161 million has been provided to help over 33,500 families through the Home$tart and NAHI programs.
Members of FHLB Des Moines are able to use another tool, a community investment advance, to support housing and economic development projects that benefit the community at large. Amounts for these discounted advances are based on per project basis. Meeting the credit needs of local communities is being a good neighbor and is also good business.
Since its inception, the affordable housing program of the Federal Home Loan Bank of Des Moines has grown to be an important and engaged partner for strengthening community-wide vitality across Missouri. As the Federal Home Loan Bank of Des Moines grows in service to its members, the Affordable Housing Program will also grow in purpose-driven support that ignites economic opportunity.
For more information, contact your relationship managers, Phil Everitt at peveritt@fhlbdm.com and Rich Weaver at rweaver@fhlbdm.com, or visit us at www.fhlbdm.com.
