By Stacy Swimp
For many Black American first-time homebuyers in Baltimore, owning a home can feel impossibly expensive. This is the result of a long history of discriminatory practices that have prevented Black families from building wealth through property ownership. Fortunately, the Federal Home Loan Bank (FHLBank) of Atlanta offers grants in partnership with local banks to provide down payment assistance—directly addressing these unfair barriers.
**The Beginning: Stabilizing America’s Housing**
The FHLBank System was created during the Great Depression by President Herbert Hoover in 1932 (FHLBank Atlanta, n. d. a). At that time, many banks that provided home loans were on the brink of failure. The FHLBank’s main purpose was to provide emergency funding to local lenders, ensuring that money continued to flow for home loans and preventing families from losing their homes.
Today, there are 11 regional FHLBanks. The FHLBank of Atlanta serves Maryland and is owned by its member banks and credit unions.
**From Emergency Aid to Community Investment**
The FHLBank’s role changed dramatically in 1989. Legislation was passed requiring each FHLBank to dedicate 10 percent of its annual profits to an Affordable Housing Program (AHP). This move established the FHLBanks as major supporters of affordable housing nationwide.
The AHP provides grants through member financial institutions. While FHLBank grants are not designated specifically for Black residents, they are available to all qualifying low-to-moderate-income first-time homebuyers. Still, these grants remain a crucial tool in the national effort to close the racial homeownership gap.
**How These Grants Target the Racial Gap**
The AHP grants serve as an instrument of fairness by targeting specific financial challenges created by past discrimination, such as redlining.
**Breaking the Down Payment Barrier**
The biggest obstacle for many Black homebuyers is the lack of savings for a down payment—a direct result of being excluded from generational wealth-building opportunities. The AHP provides non-repayable grants, often up to $12,500 in Maryland, for down payments and closing costs. This allows creditworthy Black families to purchase homes without relying on family wealth, breaking the cycle of exclusion.
**Investing in Black Communities**
AHP funding is often directed toward buyers in Qualified Census Tracts and historically underserved neighborhoods in cities like Baltimore. By investing directly in these communities, the grants help reverse decades of disinvestment caused by redlining. This supports stabilizing property values and rebuilding homeownership rates in Black neighborhoods.
**Protecting Family Homes (Heirs’ Property)**
The FHLBank Atlanta also operates a fund specifically to address Heirs’ Property issues, which occur when homes are passed down without a clear legal title—making it difficult for families to access their home’s equity. The fund assists with legal services to clear these titles, transforming uncertain inheritance into secure, generational wealth.
**How to Find a Partnering Institution in Maryland**
These grants are offered through local banks, credit unions, and community lenders that are members of FHLBank Atlanta. Since funds are limited and availability can change each year, the best way to check if grants are available is to use the official member directory:
1. **Search the Official Directory:** Visit the FHLBank Atlanta “Find a Member” page.
2. **Filter the List:** Select Maryland as your state and look for institutions that participate in AHP Ownership Products—these are the organizations actively offering down payment grants.
The direct link to the member search tool is: [FHLBank Atlanta Find a Member Directory](https://www.fhlbatl.com/members/member-directory/)
**Building Wealth and Strengthening Communities**
These grants are transforming aspiring homeowners into property owners, fostering individual wealth, and strengthening communities—one grant-assisted home at a time.
*The opinions expressed in this commentary are those of the writer and not necessarily those of the AFRO.*
https://afro.com/black-homebuyers-baltimore-grants/
