Indianapolis Federal Home Loan Bank opens hub in Detroit

The Federal Home Loan Bank of Indianapolis opened a hub in Detroit on Tuesday, with the aim of better serving the region by providing affordable housing support and assistance to small businesses.

Having the bank located in the Palms Building in downtown Detroit will facilitate community investment more easily than when members of this team made near-monthly visits to the city, said Cindy Konich, president and CEO. from FHLBank of Indianapolis.

“Detroit is the largest city in our district and opening a satellite office in the downtown core is just the latest step we have taken to develop our ties with the city,” she said in a statement.

Konich added that the hub will help the bank facilitate investments between local partners who wish to contribute to the development of the region and ensure that there is more affordable housing available. Carrie O’Connor, the bank’s senior director of corporate communications, said two people were recently hired to work at the Detroit office and more may be added as well.

The Federal Home Loan Bank of Indianapolis was established in 1932 as one of 11 government-sponsored companies established to ensure that commercial banks, credit unions, insurance companies, savings banks, and Community development financial institutions have low cost funding. The Federal Home Loan Bank of Indianapolis operates in Indiana and Michigan and is owned as a cooperative by its members. It is private capital.

The bank uses 10 percent of its annual net income to support grants for community investment and affordable housing in both states.

Over the past decade, the Indianapolis FHLBank has invested nearly $ 10 million in Detroit.

The projects include nearly $ 8 million in home repair and down payment grants; $ 1.7 million in grants in 2020 for several affordable housing developments; and over $ 200,000 in grants to nine small businesses in Detroit since the inception of the Elevate Small Business program in 2018.

Julie Schneider, director of the Detroit Housing and Revitalization Department, said that prior to the 2020 grants, the Indianapolis FHLBank had not provided any affordable housing grants in the city since 2014. She said that she was “really pleased” that the bank was more active in providing complementary financing for affordable projects, calling it “good news for the city as a whole”.

The increased presence will add to the visibility of the bank and allow the creation of new partnerships, said Schneider.

“It helps build a pipeline of affordable housing offers to sustain,” she said. “He has the ability to be more responsive to these local needs.”

Since 2019, the bank’s team has stepped up its action in Michigan. Last year, former Detroit real estate development manager Anna Shires was recruited as the bank’s proximity partner for community investment in Detroit.

Bernadine J. Perkins