Affordable Housing Program

12 Months Ended

Dec. 31, 2025

Affordable Housing Program [Abstract]

Affordable Housing Program [Text Block]

Affordable Housing Program

The FHLBank Act requires each FHLBank to establish and fund an AHP, which provides direct grants or subsidies for below-market rate advances to members who provide the funds to assist in the purchase, construction, or rehabilitation of affordable housing for very low-, low-, or moderate-income households. Each FHLBank recognizes AHP assessment expense equal to the greater of 10 percent of its annual income subject to assessment, or its prorated portion of the sum required to ensure the aggregate contribution by the FHLBanks is no less than $100 million for each year. For purposes of the statutory AHP assessment, income subject to assessment is defined as net income before AHP assessments, plus interest expense related to MRCS. The Bank accrues the AHP assessment monthly based on its income subject to assessment and reduces the AHP liability as program funds are distributed.

If the Bank experiences a net loss for a full year, it would have no obligation to the AHP for the year, because its required annual AHP contribution is limited to its annual income subject to AHP assessment. If the aggregate 10 percent AHP calculation was less than $100 million for the FHLBanks (i.e., a shortfall), each FHLBank would be required to contribute a prorated portion of the sum to ensure that the aggregate contribution by the FHLBanks equals $100 million. The pro-ration would be made on the basis of an FHLBank’s income in relation to the income of all FHLBanks for the year, subject to the annual income limitation.

There was no contribution shortfall, as described above, in 2025, 2024, or 2023. If an FHLBank finds that its required contributions are contributing to its financial instability, it may apply to the Finance Agency for a temporary suspension of its contributions under the FHLBank Act. The Bank did not make any such application in 2025, 2024, or 2023.

In addition to the statutory AHP assessment, the Bank may elect to make voluntary contributions to the AHP or other housing programs and community investment initiatives. The income statement effects of the Bank’s voluntary programs reduce net income before assessments which, in turn, reduces the statutory AHP assessment each year. The Bank has committed to making supplemental voluntary contributions to AHP by an amount that equals what the statutory AHP assessment would be in the absence of these effects. Statutory AHP assessments and all voluntary contributions to the AHP are recorded in the AHP liability on the Statements of Condition. Statutory AHP assessments and supplemental voluntary AHP contributions recorded as expense in the current year are generally awarded in the subsequent year and may be disbursed over several years.

The following table presents a rollforward of the Bank’s AHP liability (dollars in millions):

	For the Years Ended December 31,
	2025		2024		2023
Balance, beginning of year	$	262	$	198	$	135
Assessments	98		102		107
Voluntary AHP expense	7		6		5
Supplemental voluntary AHP expense	8		7		—
Disbursements	(74)		(51)		(49)
Balance, end of year	$	301	$	262	$	198