Dallas FHLBank Sets Up Relief Grants

The Federal Home Loan Bank of Dallas has established a $5 million Disaster Relief Grant Program to assist recovery efforts in the wake of Hurricane Katrina.Although the program is aimed chiefly at addressing the housing and community investment needs of devastated communities in Louisiana and Mississippi, the FHLBank said the grants may also be used to support hurricane-displaced residents in other locations in its five-state district. The grants, which will be awarded through the bank's member institutions, can be used for rehabilitation, construction, working capital, and infrastructure development as well as principal reduction and downpayment and closing cost assistance for single-family homebuyers. The FHLBank said it will also donate $100,000 to disaster relief on behalf of its members and $45,000 raised through an employee and director matching contribution program.