Old National Bancorp, in partnership with the Federal Home Loan Bank of Indianapolis (FHLBI), has provided a $1.2 million 0% interest loan to the Indianapolis Neighborhood Housing Partnership, Inc. (INHP). This was made possible through Old National’s participation in the FHLBI’s CDFI Rate Buydown Advance program.
INHP’s mission is to create affordable housing solutions for people with low and moderate incomes, and to collaborate to enhance the quality of life in Indianapolis neighborhoods.
“Old National is proud to support this public-private initiative to attract investment into low-income communities that we serve in Indianapolis,” said Old National Chief Impact Officer and Indianapolis Market President Rafael Sanchez. “This relationship ensures that important investment decisions are made by local organizations that know their communities best.”
Community Development Financial Institutions such as the INHP are lenders with a mission to provide fair, responsible financing to rural, urban, Native, and other communities that mainstream finance doesn’t traditionally reach. The CDFI Rate Buydown Advance program is creating a new lending pipeline to address the housing and community development needs of Michigan and Indiana.
“Old National Bank has been a tremendous partner to INHP and our consumers,” says INHP President Gina Miller. “This unique opportunity to access capital through the Federal Home Loan Bank of Indianapolis CDFI Rate Buydown Program is yet another way ONB’s partnership will provide much-needed capital to grow INHP’s mortgage lending, commercial lending and single-family home development solutions in service to families and neighborhoods.”
The FHLBI launched the CDFI (Community Development Financial Institution) Rate Buydown Advance program in 2024 with a $5 million allocation. CDFI Rate Buydown Advances allow non-depository CDFI member institutions to borrow directly from the bank while also encouraging other member financial institutions to lend to non-depository CDFIs, regardless of bank membership.
“We were excited to partner with long-standing member, Old National Bank, to assist them in supporting INHP and affordable housing initiatives in the state of Indiana,” says M. Todd Hargreaves, FHLBank Indianapolis Managing Director, Business Development.
The Federal Home Loan Bank (FHLB) was created by Congress in response to the Great Depression. While not a direct lender, the FHLB is an $800 billion system that provides lendable funds to other financial institutions, with 11 regional locations across the country. As access to low-cost capital remains vital for CDFIs to continue lending in underserved markets, the CDFI Rate Buydown Advance program is building partnerships to further assist CDFIs with additional access to low-cost capital. Mission-driven organizations are encouraged to apply for CDFI Certification and participate in CDFI Fund programs that inject new sources of capital into neighborhoods that lack access to financing.
