FHLBank Chicago Awards $62 Million in Affordable Housing Grants to Support Nearly 1,800 Affordable Housing Units in Illinois and Wisconsin

The Federal Home Loan Bank of Chicago (FHLBank Chicago) today announced it has awarded $62 million through its 2026 Affordable Housing Program (AHP) General Fund round to help finance 47 housing projects located in Illinois and Wisconsin. The awards include an additional $10 million in funding approved by FHLBank Chicago’s Board of Directors to further support affordable housing needs across the district. This funding will enable the acquisition, rehabilitation, and new construction of 1,786 affordable housing units.

"Affordable housing remains a pressing need across Illinois and Wisconsin, as rising development costs and limited housing supply continue to challenge communities," said Michael Ericson, President and CEO, FHLBank Chicago. "By increasing our investment in this year’s AHP General Fund, we're able to support more affordable housing and help our members and community organizations move critical projects forward."

Since the program’s inception in 1989 through year-end 2025, FHLBank Chicago has allocated more than $630 million in AHP General Fund grants, helping provide housing for more than 85,000 households. This year’s awards will support affordable housing projects across Illinois and Wisconsin, reflecting a broad range of affordable housing needs and approaches.

AHP General Fund grant applications are submitted annually by housing development organizations, government entities, public housing authorities and tribally designated organizations through FHLBank Chicago member institutions, which include banks, credit unions, insurance companies and community development financial institutions.

One of this year’s AHP General Fund grants was awarded to Reclaiming Chicago NFP for the construction of 24 affordable single-family homes on vacant, city-owned lots across four Chicago neighborhoods: Back of the Yards, Roseland, North Lawndale and Washington Park. Sponsored by FHLBank Chicago member First Eagle Bank, the effort is an initiative of United Power for Action and Justice which brings together civic and religious organizations, including five nonprofit development partners, to expand homeownership opportunities.

“FHLBank Chicago's Affordable Housing Program plays an important role in closing financing gaps and making affordable housing projects possible," said Faruk Daudbasic, SVP of Commercial Lending and Community Development at First Eagle Bank. "We're proud to support Reclaiming Chicago's efforts to transform vacant lots into affordable homes and create meaningful homeownership opportunities for Chicago families. Beyond sponsoring the AHP grant, First Eagle Bank has also provided a $1 million interest-free loan to help advance this important initiative. We strongly believe in Reclaiming Chicago's mission, and their efforts to revitalize neighborhoods and expand affordable homeownership have certainly not gone unnoticed.”

Another 2026 AHP General Fund grant was awarded to Milwaukee Development Corporation to transform a historic former hospital into 124 affordable apartments for adults ages 55 and older. Sponsored by Associated Bank, N.A., the project will include 25 supportive housing units for residents with disabilities and on-site services provided by Jewish Family Services.

"This development will bring much-needed affordable housing to Milwaukee while preserving an important part of the neighborhood's history," said Pat O'Brien, President of the Milwaukee Development Corporation. "We're grateful to FHLBank Chicago and Associated Bank for supporting a project that will help older adults live independently with access to the services they need."