Letters of Credit Enable Housing Investments in Underserved Communities

Albank in Chicago has served low- and moderate-income neighborhoods since 1953, and through FHLBank Chicago’s letters of credit, has expanded its capacity to finance housing and economic development. By securing municipal deposits, letters of credit have helped Albank to grow deposit relationships and lending capacity—making it possible to fund projects that might otherwise be difficult to finance.

In 2025, Albank refinanced the rehabilitation of a 56-unit apartment building in Chicago’s Rogers Park neighborhood, owned by 7301 N. Ridge LLC and managed by Hunter Properties, Inc. Ownership invested over $700,000 in major systems improvements, including a new boiler, windows, new electrical service, masonry work, updated apartments, and parking lot renovations. The project maintained incomequalified rents, allowing the building to qualify for the Cook County Assessor’s Office’s Housing Special Assessment Program—which provides a property tax reduction for buildings that invest in major improvements.

“We take great satisfaction in providing quality naturally occurring affordable housing,” said David Rees, Manager of 7301 N. Ridge LLC, the developer. “This project allowed us to preserve affordable housing for the neighborhood while making much needed improvements and ensuring long-term viability.”

For Albank, letters of credit have become integral to their business model. “They’re simple and expand the types of investments we can make in low- and moderate-income communities,” said Adam Steinback, Albank President. “By securing municipal deposits, we can do more lending in the communities that need it most—supporting housing projects and local economic growth.”

Through its partnership with FHLBank Chicago, Albank continues to use letters of credit to strengthen municipalities, including the City of Chicago, to deliver meaningful impact across the communities it serves.

Read more in our 2025 Impact Report.