Detroit, Michigan – The Federal Home Loan Bank of Indianapolis has announced a big boost for efforts to make housing more affordable in the Midwest. It has approved $34.1 million in grant money under its Affordable Housing Program for 2025. The money will go to 43 projects in Michigan and Indiana. The City of Detroit will get more than $4.6 million to build and fix up affordable houses. This year’s amount is barely short of the Bank’s all-time high of $34.6 million in 2024, which shows how important and urgent it is to invest in housing stability for low-income residents.
The AHP initiative is meant to fill in the financial gaps that sometimes make it hard to build affordable homes. The initiative will pay for projects that focus on buying, building, and fixing up homes for people and families with very low, low, or moderate incomes. FHLBank Indianapolis member institutions work with non-profits and developers to apply for help. Each proposal can get up to $1 million.
Detroit’s part of the funds is likely to be very important in increasing the number of affordable homes in the city, especially as development pressures continue to change the communities in the city. The details of each project are different, but they all have an effect on the whole region. They include new building, keeping existing homes in good shape, and making it easier for people to buy homes. Only three of the 43 authorized projects are focused on ownership models. This shows that the focus remains on providing rental housing for people who need it the most.
Read also: Community gathered in downtown Flint to witness adoptions marked by hope love and lasting change
FHLBank Indianapolis has helped start thousands of affordable units since the program began in 1990. They do this through long-term financial partnerships and annual competitive allocations. Brendan McGrath, the Bank’s President and CEO, said that these incentives give home developers more security as they deal with rising expenses and changing market conditions.
“FHLBank Indianapolis is proud to offer reliable sources of funding via our Affordable Housing and other community programs through meaningful partnerships with member financial institutions and community stakeholders,” said President and CEO Brendan McGrath. “In order to help navigate challenges facing the housing industry, in 2025 our Affordable Housing Program will help fund the creation or rehabilitation of an additional 1,578 units of affordable housing.”
The latest batch of investment is a timely move toward making housing more accessible, since demand for affordable housing is much higher than the supply. The projects that were chosen show that development is on the rise, and Detroit’s part of the money, which is worth millions of dollars, strengthens its position as a vital economic hub in the region. As communities seek to find a balance between improving the economy and providing fair housing, these funds are part of a larger effort to make sure that working families can still find stable homes.
The Federal Home Loan Bank of Indianapolis has a complete list of approved 2025 projects, as well as more information regarding funding initiatives that help growth in Michigan and Indiana.