FHLBs award Affordable Housing Competitive Funding Program (AHP Competitive Funding Program) grants through a competitive application process for members working with community organizations and housing developers to create rental or homeownership opportunities for lower-income households. By statute, each FHLB sets aside 10 percent of its annual earnings for distribution as equity-like investments, usually grants, to its member communities for affordable housing purposes. For homeownership projects under the AHP Competitive Funding Program, funds must support the purchase, construction, or rehabilitation of owner-occupied housing by or for very low-, low-, or moderate-income households. Affordability targets vary by FHLB. Projects applying for AHP funds for homeownership projects need to serve individuals and families below 80 percent of the area’s median income. Many FHLBs give preference to projects that serve lower-income households, such as those below 50 percent or 60 percent of the area median income.