Three Puerto Rican co-ops have officially joined the Federal Home Loan Bank System (FHLBS), an important source of liquidity for community lenders working to expand homeownership on the Island.
The FHLBS is a government-sponsored enterprise created in 1932 by the Federal Home Loan Bank Act to provide reliable, low-cost liquidity and funding for housing finance and community development.
The three co-ops are Cooperativa de Ahorro y Crédito La Sagrada Familia (SagradaCoop), Cooperativa de Ahorro y Crédito de Camuy (Camuy Cooperativa), and Cooperativa de Ahorro y Crédito de Lares y Región Central (LarCoop), all members of US community development credit union apex Inclusiv.
“The formal acceptance of our membership application by the Federal Home Loan Bank of New York as the first cooperativa to join marks a transformative milestone for our cooperativa and for the entire cooperative movement in Puerto Rico,” said Eddie W. Alicea-Sáez, CEO of Cooperativa La Sagrada Familia. “We are proud to pioneer this path, which will create new opportunities to expand access to fair and affordable financial solutions.”
Carlos M. De Jesús Sánchez, president and CEO of Larcoop, said: “Our membership in the Federal Home Loan Bank of New York represents a historic opportunity to strengthen our ability to serve our members.
“This partnership expands our access to liquidity and financing tools, enabling us to continue advancing the dream of homeownership and fostering the economic development of the communities we serve.”
Michele Franqui Baquero, CEO, Camuy Cooperativa, added: “Camuy Cooperativa is proud to be among the first cohort of cooperativas to become members of the Federal Home Loan Bank of New York.
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“This membership, and the tools and resources it provides, will enable us and fellow cooperativas to expand our homeownership initiatives for the benefit of the communities we serve.”
Mabel Jiménez-Miranda, executive president at the Public Corporation for the Supervision and Insurance of Cooperatives in Puerto Rico (Cossec), said: “The admission of the La Sagrada Familia, Camuy Coop, and Larcoop to the Federal Home Loan Bank of New York demonstrates the strength and capacity of Puerto Rican cooperatives.
“This achievement strengthens the tools available to support housing finance, expand growth opportunities, and generate greater benefits for members and communities.”
Inclusiv says that for years, structural differences between cooperativas and federally insured credit unions prevented cooperativas from joining the FHLB System, despite serving more than 1.2 million members and being publicly insured and regulated.
In 2023, Inclusiv, and over 65 cooperativas advocated for removing these barriers through FHFA comment letters and direct engagement with agency officials. In April 2024, the FHFA issued new guidance establishing pathways for eligible cooperativas to obtain FHLBank membership, followed by a Memorandum of Understanding between the Federal Home Loan Bank of New York (FHLBNY) and Cossec to implement the new framework.
Cathie Mahon, president/CEO of Inclusiv, said the apex “has worked closely with our members, the regulators and local partners to unlock FHLB System membership for financial cooperatives in Puerto Rico”.
She added: “The approval of these initial cooperativa applicants to FHLBNY marks a monumental expansion that will allow co-operatives to access long-term capital to expand mortgage lending and make the dream of homeownership affordable to low- and moderate-income Puerto Rican families and households.”
