Blue Cross and Blue Shield of Minnesota (Blue Cross) today announced it has access to $160,000 in Affordable Housing Program (AHP) funds through its membership with the Federal Home Loan Bank (FHLB) of Des Moines. Blue Cross has entered into an agreement with Twin Cities Habitat for Humanity to have the charitable non-profit serve as underwriter and administrator for the grants, which will be available to qualifying first-time home buyers in Minnesota. Eligible households can receive a grant of up to $5,000 in down payment and closing cost assistance.
FHLBanks typically provide AHP funds to member financial institutions that have their own mortgage lending programs. As a result of structuring this unique collaboration with Twin Cities Habitat for Humanity, Blue Cross has become the first health insurance member of FHLB of Des Moines to access AHP funds.
"Housing is a major component of a person's social determinants of health, or external factors that impact health outside of the healthcare system," said May Vang, Vice President, Treasury and Chief Investment Officer at Blue Cross. "Blue Cross is always looking for new ways to help address the social drivers of health inequities. The opportunity to build upon our collaboration with Twin Cities Habitat for Humanity and provide additional resources for first-time home buyers is a privilege. We are grateful for their support and allowing Blue Cross to utilize our FHLB membership in this meaningful way."
The Federal Home Loan Bank (FHLB) system is composed of 11 FHLBanks located across the country. Each FHLBank is a separate, government-chartered, member-owned corporation. Membership organizations include commercial banks, credit unions, and insurance companies.
Each FHLBank maintains its own Affordable Housing Program and distributes AHP funds to finance the purchase, construction, or rehabilitation of owner-occupied housing for low- or moderate-income households (incomes at 80 percent or less of the area median income). Members may apply for AHP funds on behalf of a non-profit with applications evaluated under a scoring system.
The funds accessed by Blue Cross will be distributed equally among two FHLB down payment programs – HomeStart and the Native American Homeowner Initiative. Since the inception of its Affordable Housing Program in 1990, FHLB Des Moines has awarded more than $844 million to provide affordable housing opportunities to more than 124,000 families and individuals.
"After buying their quality, affordable homes, Twin Cities Habitat for Humanity clients report better health, fewer visits to the doctor, and improved mental health," said Betsy Mills, vice president of finance and lending at Twin Cities Habitat for Humanity. "We're grateful to Blue Cross for creatively leveraging this funding opportunity, which helps to expand equitable access to affordable homeownership and, ultimately, will strengthen health and wellbeing for dozens of families in the Twin Cities community."
About Twin Cities Habitat for Humanity
Twin Cities Habitat for Humanity brings people together to create, preserve, and promote affordable homeownership and advance racial equity in housing. Since 1985, more than 1,700 families have partnered with Twin Cities Habitat to unlock the transformational power of homeownership. Twin Cities Habitat is one of the highest-regarded Habitat for Humanity affiliates nationwide. www.tchabitat.org.
About Blue Cross and Blue Shield of Minnesota
For 90 years, Blue Cross and Blue Shield of Minnesota (bluecrossmn.com) has supported the health, wellbeing and peace of mind of our members by striving to ensure equitable access to high quality care at an affordable price. Our 2.5 million members can be found in every Minnesota county, all 50 states and on four continents. Blue Cross and Blue Shield of Minnesota is an independent licensee of the Blue Cross and Blue Shield Association.