FHLB Cincinnati Adds $3.9 million to Disaster Reconstruction Program

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Federal Home Loan Bank of Cincinnati

Jan 25, 2024, 16:30 ET

Grants of up to $20,000 available for those impacted by natural disasters in Kentucky, Ohio and Tennessee

CINCINNATI, Jan. 25, 2024 /PRNewswire/ -- The Federal Home Loan Bank of Cincinnati's (FHLB) Disaster Reconstruction Program (DRP) has been replenished with an additional $3.9 million, bringing the total funding currently available to $5.0 million.

The initial $5.0 million voluntary fund was created in March 2012, following a series of tornadoes that devastated communities in Kentucky, Ohio and Tennessee. Through the fund, households in federally or state-declared natural disasters are eligible to receive grants of up to $20,000 to help repair or replace their homes. Since 2012, the fund has been used to help those affected by tornadoes, floods and other natural disasters. As a result of additional financial contributions to the program, close to $8.0 million has been disbursed to help 604 households rebuild.

Recently, funds have been used to help rebuild after flooding in eastern Kentucky, tornadoes in Dayton, Ohio and flooding in Waverly, Tennessee. Member financial institutions have played an important role in ensuring these funds are used in the communities they serve.

"Over the last 12 years, we've seen the Disaster Reconstruction Program make a difference in communities throughout Kentucky, Ohio and Tennessee when they have needed it most. DRP funds have helped rebuild homes from the ground up after devastating tornadoes and floods. These additional funds approved by our Board of Directors will ensure funds are available to continue this important work over the next few years," said Andy Howell, President and CEO, FHLB Cincinnati.

Given the success of this voluntary program, the FHLB Board of Directors approved the additional $3.9 million bringing the total disaster funds available for immediate use to $5.0 million. Since inception of the program, the Board has authorized nearly $13.7 million for the program.

The distributed funds are voluntary and in addition to the FHLB's required 10 percent of net earnings set-aside to fund the organization's Affordable Housing Program (AHP). Since the inception of the AHP in 1990, the FHLB has awarded over $895 million in subsidies towards the creation or preservation of more than 109,000 units of affordable housing. Details and program guides for all housing programs, including eligibility information, are available at www.fhlbcin.com.

About the FHLB

The FHLB is a AA+ rated wholesale cooperative bank owned by 609 member financial institutions, including commercial banks, thrifts, credit unions, insurance companies and community development financial institutions in Kentucky, Ohio and Tennessee. The FHLB provides members access to products and services (primarily Advances, which are a readily available, low-cost source of funds, purchases of certain mortgage loans from members, and issuance of Letters of Credit to members) and a competitive return through quarterly dividends on their capital investment in the FHLB. The FHLB funds these products and services by raising private-sector capital from member-stockholders and, with the other Federal Home Loan Banks (FHLBanks) in the FHLBank System, issuing high-quality debt in the global capital markets. The FHLB also funds community investment programs that help its members create affordable housing and promote community economic development.

SOURCE Federal Home Loan Bank of Cincinnati