It has awarded a total of $5.9 million to 21 organizations through its member banks in amounts ranging from $152,127 to $500,000.

In September, the FHLBank Atlanta announced it increased its funding to $5 million from the original initiative of $1 million it announced in 2022.

Heirs' property, also known as tangled titles, come about when the original owner of a home dies, typically without a will. Multiple family members, across several generations, have now inherited a stake in the property. But in many of these cases, the current occupants in the home, who are among the legal claimants to the property, do not appear on the deed.

Bills go nowhere in Congress

A model state law exists, The Uniform Partition of Heirs Property Act, which is on the books in 22 states. In the last session of Congress, a bill was introduced in both houses to incentivize other states to pass similar legislation, but was not acted upon.

A second bill, the Heirs Empowerment and Inheritance Rights Act, was only introduced in the House and also failed to advance.

"As part of our broader work to address housing challenges, we added a program to focus on heirs' property issues," said FHLBank Atlanta President and CEO Kirk Malmberg in a press release.

"Without the proper paperwork or legal process, it is often difficult for homeowners or their heirs to benefit from those assets, which are often purchased with the goal of building generational wealth," he continued. "The organizations receiving these grants work with homeowners to resolve tangled titles, execute wills and estate plans and provide education to ensure their intended heirs can benefit from the hard-earned equity in their homes."

The bank pointed to its 2024 Harris Poll survey which found 90% of homeowners expect the equity in their home to benefit their heirs, yet 43% lack either a will/trust or estate plan. More than a third surveyed, 38%, who do not have a will intend to leave their property to more than one heir.

Tangled titles hold back Lake Charles recovery

The Federal Home Loan Bank of Dallas, in its 2024 Affordable Housing Advisory Council Annual Report released last week, pointed out it provided $2 million in its Heirs' Property Program grants to 33 nonprofit, governmental and tribal entities for various initiatives.

On March 28, it provided a $100,000 grant to Project Build a Future in Lake Charles, Louisiana. The group will use $25,000 to partner with the Southwest Louisiana Law Center for community experts to deliver information sessions, with the remainder of the funds to be used by SWLA to assist clients.

"One of the most significant and lingering challenges we face with housing recovery post-Hurricane Laura is the obstacle of clear titles on homeownership," said Lake Charles Mayor Nic Hunter, in the FHLB Dallas press release. That storm struck the region in August 2020.

"There are programs and funds out there to help our residents repair and, in some cases, rebuild their homes," Hunter continued. "Some residents are unable to access these funds because a succession was never completed."

Earlier in the month, the FHLB Dallas, through Texas Capital Bank, provided a $100,000 grant to the Local Initiatives Support Corp. Houston and a $145,000 grant through Red River Bank to three recipients in Southeast Louisiana.

What the Indianapolis bank is doing

The Federal Home Loan Bank of Indianapolis, working with LISC Detroit, provided the group with a $500,000 grant to create the Detroit Heirs' Property Program: A Community-Driven Approach.

In Detroit, at least 5,525 properties have all of their recorded owners believed to be deceased, based on tax assessor records, a February 2024 report said.

The program is designed to complement current efforts administered by the city and the Gilbert Family Foundation, whose co-founders are Dan and Jennifer Gilbert; Dan Gilbert is the founder of Rocket Cos.