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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowCindy Konich is CEO of the Federal Home Loan Bank of Indianapolis, often called a “bank for banks.” It’s one of 12 created by Congress to provide member financial institutions access to low-cost funding, but it’s privately capitalized and receives no congressional appropriations.
The 58-year-old Indiana University alumna joined FHLBI as a cash manager in 1984. She went on to assume several positions, including treasurer in 2005, chief financial officer/chief operating officer in 2010, and CEO in 2013. She says the FHLBI continues to play a key role, especially in affordable housing.
Konich (IBJ file photo)IBJ: How would you describe the state of affordable housing in Indiana?
KONICH: We dedicate 10 percent of our income to affordable housing grants. We represent Indiana and Michigan, and I can tell you, for this state, there’s never been a dearth of applications [from member institutions] for our grant program. So there’s a strong need and there will remain a strong need in Indiana, and we work really hard to make sure we fine-tune affordable-housing environments to meet what we need in Indiana.
IBJ: Do rising rental rates have implications for you or the people your organization looks to support?
KONICH: I would anticipate that more of the projects that are requesting grants [will] be of a rental nature. It’s hard to say, but I think there’s potential for an uptick there because, when you look at home-ownership residency rates relative to rental properties, rental is seeing a resurgence.
I think it’s an issue of supply and demand, and right now you have issues with a lack of supply. So until that supply is met, that’s going to continue to exacerbate the situation.
IBJ: The FHLBI has been involved in affordable housing for 25 years, but projects like supportive housing for homeless people are fairly new. What’s behind that?
KONICH: There are all kinds of projects out there. It just depends on what the partnership between the member and the local non-profit or developer is. We’ve seen projects for the benefit of veterans, people with disabilities, for the homeless. We’ve got a project up in Michigan for children that are transitioning out of foster care. There is no limit, in my mind, to how creative one can be in establishing what a local community may need.•
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