Nashville Standard

United States Senator Bill Hagerty (R-TN) and his colleagues from the Senate Banking Committee have sent a letter to Federal Housing Finance Agency (FHFA) Director Sandra Thompson expressing their concerns about racially discriminatory pilot programs within the Federal Home Loan Bank System. The Senators criticize these programs for imposing racially discriminatory policies, lacking proper oversight, and deviating from the statutory mandates of the FHFA and Federal Home Loan Banks.

The Senators highlight specific examples of these discriminatory programs. FHLBank Atlanta has established a pilot program that evaluates grant applicants for multifamily rental housing projects based on their race or their ability to provide housing to families on the basis of race. FHLBank Boston and FHLBank Indianapolis have pilot programs that provide down payment assistance exclusively to homebuyers who belong to certain racial groups. These programs exclude homebuyers who do not self-certify as belonging to specific racial categories.

The Senators emphasize that these pilot programs lack adequate oversight from the FHFA and appear to disregard the law by providing assistance to households with incomes that exceed the limits set by Congress. They argue that these programs are not only discriminatory and unfair but also contrary to the FHLBanks' secondary mission of supporting affordable housing.

The Senators call on the FHFA and its regulated entities to refrain from advancing politically contentious social agendas and to refocus on their mission of supporting the U.S. housing system. They urge the FHFA to thoroughly evaluate current programs and policies to ensure they align with congressional intent and are authorized by law.

The Senators request information from the FHFA by February 23, 2024, regarding the pilot programs and their compliance with statutory and regulatory requirements. They also ask for answers to specific questions related to these programs.

In September 2023, Senator Hagerty had previously led a letter raising concerns about similarly discriminatory practices occurring at the FHFA. Co-signers of the letter include Senators Katie Britt (R-AL), Thom Tillis (R-NC), and J.D. Vance (R-OH).

The FHFA and its regulated entities have been urged to address these concerns and ensure that their activities align with congressional intent and are authorized by law. The Senators emphasize the importance of an inclusive approach that ensures equal treatment for every American.