Could owning stock in a local FHLB be used in the investment test? How would an exmainer look at it?

Thanks

No, it is excluded (you can't count it as an investment)

Your FHLB Grant sponsorships can be counted in the service test, but FHLB in general is not specific enough to LMI or small business to be counted. Only a small percentage of their profits are earmarked for LMI causes.

The FHLB sets aside 10% of dividends due to shareholders for LMI housing. Could the 10% of forgone dividends be counted toward the investment test? Has it been??

LOL nice try, but no. It has to be real money and the real money has to be yours to count as an investment. Waived or non-received funds are not "real" money.