Program Provides Annual Grants to Subsidize the Acquisition, New Construction and/or Rehabilitation of Affordable Rental or Owner-Occupied Housing

The Federal Home Loan Bank of Chicago (FHLBank Chicago) today announced it has awarded $52 million through its 2025 Affordable Housing Program (AHP) General Fund round to help finance 37 housing projects located in Illinois and Wisconsin. This funding will enable the acquisition, rehabilitation, and new construction of over 1,600 housing units.

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Rendering of the Blackstone in Du Quoin, Illinois. A $1.5 million Affordable Housing Program (AHP) award through FHLBank Chicago member Associated Bank will help Turnstone Development Corporation build 36 new rental units.

"Affordable housing remains a critical need throughout Illinois and Wisconsin, especially as residents face elevated interest rates, limited inventory, and increased construction costs,” said Michael Ericson, President and CEO, FHLBank Chicago. “Through our AHP General Fund, we’re proud to partner with our members and community organizations to increase supply of, and expand access to, quality housing."

Since program inception in 1989 through year-end 2024, FHLBank Chicago has allocated more than $550 million in AHP General Fund grants, helping provide housing for over 83,000 households. The 2025 award recipients will support a range of communities—including rural, urban and tribal areas—and populations such as seniors, veterans, and working families.

One of the 2025 AHP General Fund grants was awarded to Turnstone Development Corporation for The Blackstone, a new 36-unit development for residents 55 and older in Du Quoin, Illinois. Sponsored by Associated Bank, National Association, the project will provide affordable rental housing with units reserved for households earning between 30–60 percent of area median income. The building will feature one- and two-bedroom apartments along with a fitness center, community room, and garden space designed to foster connection and well-being.

“The Blackstone will bring much-needed housing to Du Quoin and help residents age in place with dignity,” said Sue Wiemer of Turnstone Development Corporation. “We’re grateful to FHLBank Chicago and Associated Bank for supporting a project that enhances both quality of life and community vitality.”

In addition to the AHP General Fund, FHLBank Chicago’s Affordable Housing Program includes the Downpayment Plus^® (DPP^®) Program, which provides forgivable grants to help eligible homebuyers cover down payment and closing costs. Since program inception in 1994 through year-end 2024, FHLBank Chicago has allocated over $300 million through its DPP Program, supporting more than 47,000 homebuyers.

AHP General Fund grant applications are submitted annually by developers, government entities, public housing authorities and tribally designated organizations through FHLBank Chicago member institutions, which include banks, credit unions, insurance companies and community development financial institutions.

View the full list of 2025 FHLBank Chicago AHP General Fund projects and descriptions.

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” and “DPP” are registered trademarks of FHLBank Chicago.

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