- February 19, 2026
- Greg Hettrick
From Construction to Rehabilitation: The Affordable Housing Program Toolkit
Affordable housing is more than just building new homes. It’s also about preserving what already exists.
Rehabilitation projects offer a unique value proposition. They allow communities to retain the character and history of existing neighborhoods while upgrading homes or apartments to meet modern standards. For residents, this can mean safer living conditions, improved energy efficiency and enhanced accessibility—often without the disruption of relocation.
In cities like Houston and Dallas, Texas, and New Orleans, Louisiana, rehabilitation projects funded through our Affordable Housing Program (AHP) will address critical needs that range from restoring senior housing to updating multifamily units for veterans and families.
At the Federal Home Loan Bank of Dallas (FHLB Dallas), we’ve long supported new construction through the AHP, but we are also seeing opportunities to support rehabilitation projects.
We increased the total number of rehabilitated projects that were approved in the latest round of AHP funding by nearly 56 percent and the number of affordable housing units that will be rehabbed by 27 percent over 2024 figures.
These latest grants will bring upcoming improvements to aging housing stock over the coming year with improvements to accessibility and safety, all while preserving affordable units that might otherwise be lost to disrepair or redevelopment. In total, 925 units were funded for rehabilitation—a cost-effective way to expand housing access without starting from scratch.
Here are five examples of rehabilitation projects funded from 2025 Affordable Housing Program funds that reflect the impact of this approach:
- The Housing Authority of the City of Abilene partnered with First Financial Bank to rehabilitate 304 units in Abilene, Texas, making it the largest rehabilitation project funded in 2025. Grant: $1.75 million
- Lubbock Housing Finance Corporation partnered with Stellar Bank to rehabilitate 152 units in Lubbock, Texas, preserving affordable housing in a growing West Texas community. Grant: $1.75 million
- New Century Development Corp. partnered with Trustmark National Bank to rehabilitate 50 units in McComb, Mississippi, supporting housing stability in a rural area. Grant: $1.25 million
- Odyssey House Louisiana partnered with Fifth District Savings Bank to rehabilitate 57 units in New Orleans, Louisiana, enhancing housing for individuals in recovery from substance abuse and addictions. Grant: $1.425 million
- Laguna Housing Development & Management Enterprise partnered with First National Bank Texas to rehabilitate 40 units in Laguna, New Mexico, helping preserve housing in a tribal community. Grant: $1 million
The inclusion of rehabilitation in AHP’s funding strategy reflects our approach to affordable housing. By supporting both new construction and rehabilitation, we’re equipping our member institutions and their community partners with a versatile toolkit.
This flexibility is especially important in areas where land is scarce or where existing housing can be salvaged and improved.
Apply for an AHP Grant and Make a Lasting Change
As we plan for future AHP funding cycles, we encourage our member institutions and affordable housing developers to consider the full spectrum of housing needs in their communities. Whether it’s building new units or breathing new life into existing ones, AHP is here to support projects that make a lasting difference.
If you are a member or housing organization, we encourage you to attend one of our upcoming workshops that explain the AHP and how to apply. Apply for funding between March 31 and April 30. Grant awards will be announced in the fall.
Learn more: fhlb.com/ahp
Greg Hettrick is senior vice president and director of Community Investment at FHLB Dallas.
