The Federal Home Loan Bank of Chicago increased the benefits offered through its Community Advance program for 2026, to support affordable housing and local development. 

The additions include a $55 million total annual interest rate subsidy, allocated on a first-come, first-served basis, and an increase to the per-member outstanding Community Advanced limit from $250 million to $500 million. The application period opened Friday and will close on Dec. 31.

"The expanded Community Advance reflects our commitment to making even more funding available to our members to drive community building activity in their communities," said Michael Ericson, president and CEO of FHLBank Chicago, a regional bank in the Federal Home Loan Bank System, in a press release Friday. FHLBanks are government-sponsored enterprises created to ensure access to low-cost funding for their member financial institutions.

By law, 10% of the profits from each of the 11 Home Loan Banks are to go to affordable housing and community development programs.

"Increased funding and higher per-member limits will mean even more capital can be dedicated to housing and economic development across Illinois and Wisconsin," he added.

The existing perks of Community Advance include:

• Interest rate discounts of up to 200 basis points;
• $200,000 per-member interest rate subsidy cap;
• expanded eligibility;
• and no match funding or retention requirements.

The program offers tiered subsidized discounts based on financing type, such as housing construction and rehabilitation loans, and funding for nondepository Community Development Financial Institutions and nonprofit mortgage originators, the release said.All eligible small business loan originations also qualify with no area median income limit, and expanded eligibility involves mortgage-backed securities, mortgage revenue bonds and low-income housing tax credits, the release said.

CoVantage Credit Union used the Community Advance to secure funding for the construction of three multi-family units in Illinois and 12 single-family homes in Wisconsin. "The combination of the webinars, platform, and member support made the process clear and efficient, enabling us to obtain reduced borrowing costs without impacting our members' construction timelines," said Mary Massey, chief financial officer at the credit union, in the release.

FHLBanks' heirs' property initiatives

The Federal Home Loan Banks of Indianapolis and Dallas are focused on addressing heirs' property issues, each launching initiatives to resolve and prevent them last month.

The FHLBank Indianapolis program, called Indiana Heirs' Property Initiative, will be administered by Indiana Legal Services and Prosperity Indiana, following a $500,000 grant provided by the bank. 

"Our partnership with Indiana Legal Services and Prosperity Indiana will support educational efforts and evidence-backed strategies that help at-risk homeowners in our communities access the full benefits of homeownership and help maintain the generational wealth they've worked hard to build," FHLBank Indianapolis President and CEO Brendan McGrath said in a press release Monday.

Meanwhile, FHLBank Dallas has awarded more than $4.3 million in grants to assist 42 organizations with preventing or remediating heirs' property issues, such as resolving issues with a property title or establishing a will.