Cincy FHLBank Creates Katrina Fund

The Cincinnati Federal Home Loan Bank has established a $15 million fund to provide housing assistance for persons displaced by Hurricane Katrina."Given the success of our affordable housing delivery system, our board determined we are uniquely qualified to make a difference in the lives of thousands of displaced residents in critical need of permanent housing within our FHLBank district," said board member Charles Koch, chairman of Charter One Bank NA, Cleveland. The American Red Cross estimates that 33,000 Gulf Coast residents will be temporarily or permanently relocated in Kentucky, Ohio, and Tennessee, which are served by the Cincinnati FHLBank. The government-sponsored enterprise is required to contribute 10% of its earnings each year to fund affordable housing projects. However, the $15 million Katrina fund is "over and above" the congressionally mandated AH set-aside, according to the FHLBank's president, David Hehman.