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FHLBank Chicago Expands Community Advance for 2026 to Accelerate Affordable Housing and Economic Development

BY Business Wire | AGENCY | 01/02/26 09:03 AM EST

$55 million in interest rate subsidy, higher per-member limits, and streamlined access deliver up to 200 basis point savings for Illinois and Wisconsin

CHICAGO--(BUSINESS WIRE)-- The Federal Home Loan Bank of Chicago (FHLBank Chicago) today announced the opening of its Community Advance product for 2026, reaffirming its commitment to affordable housing and local development. Backed by $55 million in annual interest rate subsidy, the program helps member institutions fund housing, support small businesses, and expand access to capital in communities that need it most.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260102461191/en/

Interest rate discounts of up to 200 basis points (bps), a $200,000 per-member interest rate subsidy cap (applied jointly for affiliated members under the same holding company owning two or more members), an improved online application experience, expanded eligibility, and no match funding or retention requirements remain as key benefits of the product. The Community Advance benefits have increased in 2026 for more member value, building on the successful launch of the streamlined offering.

What?s New in 2026

  • $55 million total annual interest rate subsidy, allocated on a first-come, first-served basis.
  • Per-member outstanding Community Advance limit increased to $500 million (up from $250 million)
  • Community Advance application open Jan. 2, 2026 through Dec. 31, 2026

Extended Impact

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

The Community Advance offers tiered subsidized discounts based on financing type, including housing construction and rehabilitation loans, and funding for non-depository Community Development Financial Institutions (CDFIs) and nonprofit mortgage originators. Advances are available in both floating and fixed rate advances, with no match funding requirements.

Members who have used the product welcome faster approvals and expanded eligibility for housing, small business loans, and partnerships with CDFIs and nonprofit mortgage originators. All eligible small business loan originations qualify with no area median income limit. Expanded eligibility also includes mortgage-backed securities, mortgage revenue bonds and low-income housing tax credits.

?CoVantage Credit Union used the Community Advance to secure funding at a competitive discount, enabling the construction of three multifamily units in Illinois and 12 single family homes in Wisconsin,? said Mary Massey, Chief Financial Officer at CoVantage Credit Union. ?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.?

Complementing existing FHLBank Chicago products, including the Downpayment Plus? (DPP?) Program and Housing Impact Pricing Grids within the Mortgage Partnership Finance? (MPF?) Traditional Program, the Community Advance provides community-building benefits and drives value for members and their communities.

Get Started

Members can use the online subsidy calculator to estimate their available discount when applying. For more details, visit FHLBank Chicago?s Community Advance page.

This $55 million investment underscores FHLBank Chicago's ongoing commitment to innovative funding solutions that help member institutions bolster affordable housing supply and strengthen communities across our region.

About the Federal Home Loan Bank of Chicago

FHLBank Chicago is a regional bank in the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to ensure access to low-cost funding for their member financial institutions, with a focus on providing solutions that support the housing and community development needs of members? customers. FHLBank Chicago is a self-capitalizing cooperative, owned by its Illinois and Wisconsin members, including commercial banks, credit unions, insurance companies, savings institutions and community development financial institutions. To learn more about FHLBank Chicago, please visit fhlbc.com.

?Downpayment Plus,? ?DPP,? ?Mortgage Partnership Finance,? and ?MPF,? are registered trademarks of the Federal Home Loan Bank of Chicago.

Source: Federal Home Loan Bank of Chicago

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