The Federal Home Loan Bank of Chicago (FHLBank Chicago) has launched the LIHTC Collateral Pilot program, providing $300 million in financing to support LIHTC multifamily housing projects. The program offers enhanced lendable value on collateral, incentivizing lending through member institutions, including banks, credit unions and CDFIs. A portion of the funds is reserved for smaller institutions with assets under $1.46 billion. This initiative aims to increase the liquidity for loans on LIHTC deals to bolster the production of affordable units. Developers must work with financial institutions like banks, credit unions and community development financial institutions (CDFIs) that are members of the FHLBank Chicago to access funding. Since $200 million is set aside for member institutions with assets under $1.46 billion, developers working with smaller banks or CDFIs may have an advantage in securing these funds. The program runs from August 2024 to August 2027, so developers should act quickly to take advantage of this funding. Find out more on the program here.