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IDEA Program: Frequently Asked Questions

Who can submit an application for IDEA Program funds?
What are the basic eligibility requirements for households receiving IDEA Program funds?
How may IDEA Program funds be used?
When can IDEA Program funds be disbursed to a qualifying household?
How many IDEA Program dollars are available to a qualifying household?
Can IDEA Program funds be used together with other Affordable Housing Program (AHP) subsidy for owner-occupied units?
When are applications for IDEA Program funds due to the Bank?
What is the allocation of funds for the program?
What will happen if the demand for IDEA funds exceeds the amount of funds available?

Who can submit an application for IDEA Program funds?
Bank member institutions may submit applications for IDEA Program funds.

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What are the basic eligibility requirements for households receiving IDEA Program funds?

The IDEA Program serves households earning up to 80% of the HUD area median income (AMI).
Members must enroll households in the IDEA Program.
Eligible households must participate in an Individual Development Account (IDA) program or in a Family Self-Sufficiency (FSS) program through their local public housing authority. View the IDA and FSS programs that have participated in the IDEA Program. (FSS and IDA programs that do not appear on this list may be added throughout the year.) View members that received an IDEA reservation this year.
IDEA Program participating households must save for a minimum of 10 months.
Participants must also successfully complete a homebuyer counseling program.
Participants must be first-time homebuyers, according to the first-time homebuyer definition provided by the member.

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How may IDEA Program funds be used?
Subsidy must be used only toward downpayment or closing costs in connection with the purchase of a housing unit to be used as the homebuyer's primary residence.

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When can IDEA Program funds be disbursed to a qualifying household?
The Bank will reimburse the member after receipt of the closing statement showing that the amount of subsidy requested was passed on to the homebuyer. In the event there is cash back to the homebuyer in an amount greater than $250, the subsidy will be reduced unless the member and the homebuyer provide sufficient documentation showing that the cash back was used to pay down the mortgage principal or for downpayment or reasonable and customary closing costs or as a credit toward the household's monthly payments on the mortgage loan. In addition, the following certifications and documentation need to be submitted by the member prior to the disbursement of funds:

Certification that the households and units funded satisfy IDEA Program guidelines and that the units are subject to deed restriction or other legally enforceable retention mechanism that meets the requirements of applicable regulations and policies of the Finance Agency.
A copy of the retention mechanism securing the IDEA funds.
Documentation verifying that the homebuyer is income eligible.
See AHP Implementation Plan (PDF) and the AHP Household Income Qualification Workbook (.xls).
Certification of completion of homebuyer counseling program.
IDEA and WISH Program Enrollment (.doc)
Certification that the homebuyer is a first-time homebuyer, as defined by the member.

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How many IDEA Program dollars are available to a qualifying household?
The Bank will provide up to $15,000 per household, matching up to $3 for every dollar saved by the homebuyer.

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Can IDEA Program funds be used together with other Affordable Housing Program (AHP) subsidy for owner-occupied units?
No, IDEA subsidies cannot be used in conjunction with AHP projects or units receiving other subsidies from the Bank through the competitive AHP or the Workforce Initiative Subsidy for Homeownership (WISH) Program, our other set-aside program.

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When are applications for IDEA Program funds due to the Bank?
The application window for the 2010 IDEA Program is from January 19, 2010, to February 19, 2010.

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What is the allocation of funds for the program?
Each year, the Bank expects to set aside a percentage of its annual AHP contribution to fund the IDEA Program.

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What will happen if the demand for IDEA funds exceeds the amount of funds available?
In any funding year, if the Bank receives requests for IDEA funds that exceed the amount set aside for the program for that year, the Bank will allocate available funds to eligible applicants in accordance with the Bank's AHP Implementation Plan.

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