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Affordable Housing Program (AHP)

AHP grants are awarded through a competitive application process to Bank members working with housing developers or community organizations to create rental or homeownership opportunities for lower-income households. Learn more. 

2014 AHP

In the 2014 funding competition, the Bank awarded $49.4 million in AHP grants to 76 projects through 22 members to support the production or preservation of over 5,000 affordable homes in nine states. 

The 2014 application period closed on March 3. The following application materials are available for reference purposes only:

The Bank offers one competitive AHP funding competition each year. Only Bank members may submit AHP grant applications. Affordable housing developers and community organizations interested in competing for AHP funds should contact a Bank member early in their planning process about partnering on an application.

A request for disbursement may be made following notification that a project has been approved to receive an AHP award.

GENERAL INFORMATION ABOUT DISBURSEMENT OF AHP FUNDS

When submitting a disbursement request, members should consider:

  • AHP Subsidy Disbursement Timeline.
    The Bank confirms receipt of disbursement requests via email within 2 business days and will process requests within 45 calendar days. Incomplete requests requiring submission of additional information will be delayed until all outstanding questions have been satisfactorily addressed. If the disbursement request cannot be completed within 45 calendar days, the request will be returned to the member for resubmission at a later date.
  • Timely Passthrough of AHP Subsidy.
    Subsidies received by a member must be disbursed to the project sponsor and applied to project development costs within 30 days of the date that funds are posted to a member's Settlement Transaction Account. Projects may be assessed an interest charge on funds not used within the 30-day period.
  • Scoring Commitments.
    Projects must continue to meet scoring commitments (e.g., income targeting, subsidy per unit) made at application or as modified thereafter. If the project’s scoring commitments at completion differ from those made at application or as modified thereafter, the project will be re-scored. Subsidies may be recaptured if the project, reflective of such differences in scoring commitments, fails to score high enough to have been approved in thae funding round in which it was originally scored and approved.
  • Legally Enforceable Retention Mechanism.
    All subsidies disbursed by the member to a project sponsor must be secured by a deed restriction or other legally enforceable retention agreement or instrument containing the requirements of the AHP regulations. Refer to the AHP retention, repayment, and recovery provisions described in the AHP Direct Subsidy Agreement. The sample AHP Promissory Note and Rider to Deed of Trust may be used to prepare the AHP retention documents for rental projects.
  • Recapture or Deobligation of AHP Subsidy.
    If the Bank determines that the amount of subsidy awarded or funded to a project is not justified based on information requested by or made available to the Bank at anytime during a project's development, the Bank may reduce the amount of subsidy awarded or recapture funds already disbursed.
  • Restricted Access to AHP Subsidy.
    The Bank reserves the right to delay or deny subsidy disbursement to a member or sponsor that has failed to respond to a prior Bank request for information regarding any AHP projects or if a member or sponsor has not cured a noncompliant situation and resolution is still pending.
  • Member Creditworthiness.
    Only creditworthy members may make requests of the subsidy disbursement.

Please refer to the AHP Implementation PlanAHP Bulletins and Notices, and the AHP Regulations (Title 12, Part 1291, of the Code of Federal Regulations) for further guidance.

DISBURSEMENT INSTRUCTIONS FOR RENTAL PROJECTS

In processing a request for funds, the Bank reviews information submitted with the disbursement request, as well as other project information obtained from the member and sponsor.

The Bank:

  • verifies that the project continues to qualify for the awarded subsidy based on the applicable threshold requirements and scoring criteria;
  • confirms that the project is in compliance with the commitments made in the approved application or approved modification(s);
  • verifies that the project sponsor and member have attended an AHP Compliance training session within the last 24 months;
  • confirms that the project is in compliance with the Bank's income qualification guidelines as per the AHP Household Income Qualification Workbook;
  • confirms that all financing sources have been secured;
  • confirms that the project has site control and that the start of construction is imminent;
  • re-evaluates the financial and operational feasibility of the project, applying the Bank’s feasibility guidelines to current project financial information; and
  • verifies the project’s continued need for subsidy. 

Request a Disbursement When Construction is Not Complete

  1. Member and sponsor review the AHP Rental Disbursement Request Checklist, which they use as a guide.
  2. Member completes and signs the AHP Disbursement Request.
  3. Member and sponsor complete and sign the Acknowledgement of AHP Compliance Requirements – Rental Projects.
  4. Sponsor completes the AHP Rental Financial Workbook, referencing the Workbook's Instruction and Notes.
  5. Member and sponsor review current project information against original approved project commitments. If scoring commitments have changed, the project sponsor and member must submit an AHP Award Modification.
  6. Member and sponsor submit a summary update on the project’s financing status and development progress. If scoring commitments have not changed, they include a statement attesting that scoring commitments have not changed.
  7. Member and sponsor verify that they have attended a compliance webinar 24 months prior to sending the disbursement request. If the requirement has not been met, they schedule or attend a training session with Bank staff.
  8. The Member submits the complete disbursement request, with all necessary information and documentation, to the Community Investment Department via email.

Request a Disbursement When Construction Is Complete

  1. Member and sponsor review and complete the AHP Rental Disbursement Request Checklist, which they use as a guide.
  2. Member completes and signs the AHP Disbursement Request.
  3. Member and sponsor complete and sign the Acknowledgement of AHP Compliance Requirements – Rental Projects.
  4. Sponsor completes the AHP Rental Financial Workbook, referencing the Workbook's Instructions and Notes.
  5. Sponsor provides the following documentation:
    • Certificate of Occupancy, Notice of Completion, or documentation of project’s habitability;
    • permanent mortgage note and deed of trust, if available or applicable;
    • completed and signed AHP Certificate of Project Owner, Initial Monitoring, Rental Project, if the project is occupied;
    • final cost certification, if available; and,
    • affirmative marketing materials.
  6. Member and sponsor review current project information against original approved project commitments. If scoring commitments have changed, the member and sponsor must submit an AHP Award Modification.
  7. Member and sponsor submit a summary update on the project’s financing status and development progress. If scoring commitments have not changed, they include a statement attesting that scoring commitments have not changed.
  8. Member and sponsor verify that they have attended a compliance webinar 24 months prior to sending the disbursement request. If the requirement has not been met, they schedule or attend a training session with Bank staff.
  9. The Member submits the complete disbursement request, with all necessary information and documentation, to the Community Investment Department via email.

DISBURSEMENT INSTRUCTIONS FOR OWNER-OCCUPIED PROJECTS 

In processing a request for funds, the Bank reviews information submitted with the disbursement request, as well as other project information obtained from the member and sponsor.

The Bank:

  • verifies that the project continues to qualify for the awarded subsidy based on the applicable threshold requirements and scoring criteria;
  • confirms that the project is in compliance with the commitments made in the original approved application or approved modification(s);
  • verifies that the project sponsor and member have attended an AHP Compliance training session within the last 24 months;
  • confirms that the project is in compliance with the Bank's income qualification guidelines as per the AHP Household Income Qualification Workbook;
  • confirms that all financing sources have been secured and are either disbursed or immediately available to the project;
  • confirms that the project has received its first construction loan draw;
  • re-evaluates the financial and operational feasibility of the project, applying the Bank’s feasibility guidelines to current project financial information; and
  • verifies the project’s continued need for subsidy.

Request a First Disbursement

  1. Member and sponsor review the AHP Owner-Occupied Disbursement Request Checklist, which they use as a guide.
  2. Member completes and signs the AHP Disbursement Request.
  3. Member and sponsor complete and sign the Acknowledgement of AHP Compliance Requirements – Owner-Occupied Projects.
  4. Sponsor completes the AHP Owner-Occupied Financial Workbook, referencing the Workbook's Instructions and Notes.
  5. Sponsor provides evidence of implemented affirmative marketing materials specific to project, e.g., newspaper ads, articles, flyers, or announcements.
  6. Member and sponsor review current project information against original approved project commitments. If scoring commitments have changed, member and sponsor complete and submit an AHP Award Modification.
  7. Member and sponsor submit a summary update on the project's financing status and development progress. If scoring commitments have not changed, they include a statement attesting that scoring commitments have not changed.
  8. Member and sponsor verify that they have attended a compliance webinar 24 months prior to sending the disbursement request. If the requirement has not been met, they schedule or attend a training session with Bank staff.
  9. The Member submits the complete disbursement request, with all necessary information and documentation, to the Community Investment Department via email.

Request Subsequent and/or Final Disbursements

  1. Member and sponsor review the AHP Owner-Occupied Disbursement Request Checklist, which they use as a guide.
  2. Member completes and signs the AHP Disbursement Request.
  3. Sponsor completes the AHP Owner-Occupied Financial Workbook, referencing the Workbook's Instructions and Notes.
  4. Sponsor provides copies of the following for one previously funded homebuyer (required only if not previously submitted):
    • HUD-1 closing statement (certified)
    • AHP note (executed), deed of trust (executed and certified), and if applicable, rider to deed of trust (executed)
    • first mortgage note (executed) and deed of trust (executed and certified)
    • other financing documents, as applicable (downpayment assistance, second, and third loans, etc.)
    • income qualification documents (please refer to AHP Household Income Qualification Workbook)
  5. Member and sponsor submit a summary update on the project's financing status and development progress. If scoring commitments have not changed, they include a statement attesting that scoring commitments have not changed.
  6. If the project is complete, member signs and completes the AHP Certificate of Member, Initial Monitoring, Owner-Occupied Project.
  7. Member and sponsor verify that they have attended a compliance webinar 24 months prior to sending the disbursement request. If the requirement has not been met, they schedule and attend a training session with Bank staff.
  8. The Member emails the complete disbursement request, with all necessary information and documentation, to the Community Investment Department.

The Bank conducts compliance monitoring for completed projects in accordance with requirements of Section 1291.7 of the AHP Regulations (in Title 12, Part 1291 of the Code of Federal Regulations). Except for rental projects that receive AHP disbursement after construction has been completed, the Bank is generally notified that a project is complete through the Semiannual Survey.

The Bank holds webinars that provide an overview of AHP compliance monitoring policies and procedures. The material presented in the webinars is covered in greater detail on this page. Recorded webinars for owner and rental projects are here for reference. Please note that viewing these recordings does not satisfy the webinar requirement for disbursements.

Semiannual Survey

Projects awarded AHP subsidies must be completed within four years following the award of subsidy. A project is defined as complete if AHP subsidy is fully disbursed and documentation of habitability has been issued (rental projects) or all homebuyer mortgage loans are closed (owner-occupied projects). 

All projects that are not complete are subject to a AHP Semiannual Survey to determine the feasibility of the project for continued disbursement. Project sponsors and members must provide evidence that the project is making "reasonable progress" toward completion. Subsidies for rental or owner-occupied projects for which the Bank does not receive completed AHP Semiannual Surveys or does not demonstrate making "reasonable progress" are subject to cancellation.

For all projects not complete on or about April 1 and October 1, the Bank sends an email (one email per project) informing project owners/sponsors that the survey is available online and ready to complete.

Initial Monitoring (IM) – Owner-Occupied Projects

Upon notification of project completion, the Bank requests the initial monitoring (IM) documentation from the project sponsor. As part of the monitoring, the Bank will request documentation to verify Promotion of Empowerment and Community Stability commitments made in the AHP application or as a result of approved project modifications. Guidelines for Empowerment and Community Stability documentation are described in the Acceptable Forms of Verification For Promotion of Empowerment and Acceptable Forms of Verification for Community Stability. In addition, the Bank requests the AHP retention documents, first mortgage notes, other financing documents, as applicable (downpayment assistance, second and third loans, etc.), and income qualification documents (please refer to the AHP Household Income Qualification Workbook) for a sample of households.

Initial Monitoring (IM) – Rental Projects

Upon notification of project completion, or at the time of subsidy disbursement for a completed project, the Bank requests the initial monitoring (IM) documentation from the project owner. As part of the monitoring, the Bank will request documentation to verify Promotion of Empowerment and Community Stability commitments made in the AHP application or as a result of approved project modifications. Guidelines for Empowerment and Community Stability documentation are described in the Acceptable Forms of Verification For Promotion of Empowerment and Acceptable Forms of Verification For Community Stability. In addition, the Bank requests income qualification (please refer to the AHP Household Income Qualification Workbook) and current rent documents for a sample of households.

Long-Term Monitoring (LTM) – Rental Projects

The retention period for rental projects awarded an AHP subsidy is 15 years from project completion. The Bank conducts off-site long-term monitoring (LTM) on rental projects that have not received Low Income Housing Tax Credits per a risk-based sampling plan. As part of the monitoring, the Bank requests income qualification documents (please refer to the AHP Household Income Qualification Workbook) and current rent documents for a sample of households.

Long-Term Monitoring (LTM) – Rental Project Owner Certifications

For all completed non-tax credit rental projects, project owners are required to certify every year during the AHP retention period and subsequent to IM that the project complies with the project’s approved rent and income commitments made in the AHP application or as a result of approved project modifications. The Bank requests certifications online from project owners.

Income Qualification Guidelines

The Bank requires that each AHP-assisted unit be income-qualified according to AHP Income Qualification Guidelines and proper third party income documentation be provided according to the Acceptable Forms of Verification for Household Income Qualification. All guidelines and required forms are provided in the AHP Household Income Qualification Workbook, which includes:

  • AHP Income Qualification Guidelines
  • Acceptable Forms of Verification for Household Income Qualification
  • Instructions for using the AHP Household Income Qualification Worksheet
  • AHP Household Income Qualification Worksheet

The AHP Income Qualification Guidelines provide instructions on what, when, and how documents must be submitted depending on the type of project. The project sponsor or Member should refer to the Acceptable Forms of Verification for Household Income Qualification for obtaining applicable third party verification documents. The project sponsor or Member must use the AHP Household Income Qualification Worksheet to calculate total annual income for each household in the project.

Legally Enforceable Retention Documents

The AHP Regulation requires that AHP-assisted owner-occupied units and rental projects be subject to a deed restriction or other legally enforceable retention agreement or instrument containing the requirements of the AHP Regulation. To help Members and sponsors meet this requirement, the Bank has prepared sample retention documents with instructions for rental projects and owner-occupied projects.

A project that has been approved by the Bank to receive an AHP award may not be modified in any way that could affect the facts under which the application was originally approved without the prior written approval of the Bank.

General Information

The Bank will consider requests for project modifications in accordance with the requirements of Section 1291.7 of the AHP Regulations (in Title 12, Part 1291 of the Code of Federal Regulations) and the Bank’s project modification procedures. The Bank requires that project sponsors/owners and Bank members report to the Bank any material changes in an approved project. A "material change" is any change that could affect the original scoring described in the Project Evaluation Form (Exhibit A of the project’s Direct Subsidy Agreement), based on the Bank’s scoring guidelines for the funding period in which the project was originally scored and approved. Modifications may also be requested for projects with previously approved modifications.

The Bank may, at its discretion, approve a modification to the terms of the approved application provided that:

  • the project continues to meet the minimum AHP eligibility requirements;
  • the project, reflective of the changes, continues to score high enough to have been approved in the AHP competitive round in which it was originally scored and approved; and,
  • there is good cause for the modification.

Instructions for Modification Requests

Sponsors/owners and members must complete the Award Modification form if requesting modifications to the original terms approved in the AHP award, as outlined in Exhibit A: Project Evaluation Form, of the project’s original Direct Subsidy Agreement.

Section I: Basic Information Modifications

Complete this section of the AHP Award Modification form if there is a change to basic project information including project name, location, sponsor, or member. Provide an explanation of the request. If a proposed change impacts a project’s scoring element, complete Section II.
 
All sponsoring parties must sign the Award Modification form in cases of a sponsorship change. A new AHP Direct Subsidy Agreement Owner-Occupied Project or AHP Direct Subsidy Agreement Rental Project must also be executed and submitted by the assuming member and sponsor.

Section II: Scoring Element Modifications

Complete this section of the Award Modification form if the project requires a change to any scoring elements committed to by the project sponsor or member at the time of the AHP award. These include changes to project features such as income targeting, number of units, unit reservations for homeless, empowering services, or special needs populations. In addition, an updated AHP Rental Financial Workbook or AHP Owner-Occupied Financial Workbook for the project must also be submitted.

Please note that changes to one scoring element may impact another scoring element.

The Member emails the modification request, with all necessary information and documentation, to the Community Investment Department.

 

In certain circumstances, AHP subsidies and/or interest on subsidies must be returned to the Bank.

Repayment of AHP Subsidy

For all rental and owner-occupied projects, repayment is generally required when:

  • the member is unable to deliver the AHP subsidy to the project sponsor or homebuyers within the required timeframes for subsidy delivery:
    • Prior to May 1, 2010: 3 months (90 days) for rental projects and 6 months (180 days) for owner-occupied projects.
    • May 1, 2010 and after: 30 days for both rental and owner-occupied projects
  • there is a reduction in the project financing gap resulting from lower than anticipated project development costs or increases in financing sources.
  • there is a reduction in the number of AHP-assisted units.
  • the Bank’s compliance monitoring review determines project’s non-compliance or failure to demonstrate the need for subsidy.

For owner-occupied projects, circumstances requiring repayment also include:

  • resale of an AHP-assisted unit to a non-income-qualified homebuyer (household income above 80% of area median income), or 
  • refinance of an AHP-assisted unit without subordination to a new first mortgage, if the resale or refinance occurs within the 5-year AHP retention period.

All repayments must be remitted to the Bank via wire transfer, according to the Bank’s wire transfer and notification instructions for AHP-related remittances, and include our Notice of Resale to Non-Income-Qualified Homebuyer Workbook.

Note: The pro rata repayment amount will be based on the amount of time remaining the AHP retention period (based on the loan closing date). To calculate your subsidy repayment according to the Bank’s methodology, use our Notice of Resale or Refinance with Subsidy Repayment Workbook. A completed and printed copy of this workbook must be provided at the time of notification to the Bank of subsidy repayment.

Assumption of AHP Subsidy or Foreclosure

Repayment is not required in the event that an AHP-assisted homebuyer refinances and subordinates the AHP subsidy to a new first mortgage note or in the event of foreclosure. However, the member must notify the Bank of the subsidy assumption or foreclosure for owner-occupied or rental projects using our AHP Notice of Finance with Subordination workbook.

Assumption

Members must notify the Bank in the event that the AHP-assisted homebuyer refinances and subordinates the AHP subsidy to a new first mortgage note.

A completed and printed copy of the AHP Notice of Refinance with Subordination Workbook must be provided at the time of notification to the Bank of subsidy assumption. Members must provide the Bank with an executed assumption or subordination agreements securing the unused portion of the AHP subsidy for the unit.

Foreclosure

The member must notify the Bank of a foreclosure event occurring within the 5-year AHP retention period for owner-occupied projects, and within the 15-year AHP retention period for rental projects. For owner-occupied projects, the obligation to repay AHP subsidy shall terminate after any foreclosure.

To notify the Bank of a foreclosure event, use our AHP Notice of Foreclosure Workbook. A completed and printed copy of this workbook must be provided at the time of notification to the Bank.

The AHP Implementation Plan sets forth certain policies, procedures, standards, and requirements applicable to the Bank’s AHP, as required by the AHP Regulations (Title 12, Part 1291 of the Code of Federal Regulations). While the Implementation Plan includes other pertinent information pertaining to the Bank’s AHP, the plan is not intended to be a comprehensive statement of all of the Bank’s applicable policies and procedures.

Policy Updates 

April 11, 2014
Revised AHP Implementation Plan - Compliance Monitoring Site Visits

January 24, 2014
AHP Project Acquisition Costs

December 16, 2013
Affordable Housing Program (AHP) Implementation Plan Revisions and Other Changes

November 1, 2013
Revised AHP Household Income Qualification Workbook 

June 3, 2013
Revised AHP Implementation Plan

December 21, 2012
Revised AHP Implementation Plan 

August 22, 2012
2012 AHP Round B Competition: Apply Now! 

August 15, 2012
Revised AHP Implementation Plan 

March 27, 2012
SAS Surveys and California Redevelopment Agency Funding

March 2, 2012
New AHP Application Documentation Requirements 

February 27, 2012
2012 AHP Round A Competition

January 31, 2012
Revised AHP Implementation Plan 

December 21, 2011
Revised AHP Implementation Plan

October 3, 2011
Revised AHP Implementation Plan: Change Related to Resubmitted Projects 

August 22, 2011
2011 Affordable Housing Program Round B Competition

August 8, 2011
Revised Affordable Housing Program Implementation Plan 

May 17, 2011
Revised AHP Sample Retention Documents and Direct Subsidy Agreements

April 5, 2011
Revised AHP Implementation Plan: Change Affecting the Competitive Program 

March 4, 2011
2011 Affordable Housing Program Round A Competition

January 4, 2011
AHP Retention Documents – Sample Documents Available Online 

December 22, 2010
Revised AHP Implementation Plan 

October 25, 2010
AHP Compliance Training Requirement

August 23, 2010
2010 AHP Round B Competition 

August 16, 2010
Revised Affordable Housing Program Implementation Plan

April 1, 2010
Revised Affordable Housing Program Implementation Plan

February 16, 2010
2010 Affordable Housing Program Round A Competition 

February 11, 2010
Revised Affordable Housing Program Implementation Plan

February 5, 2010
New Affordable Housing Advisory Council Members Appointed 

October 8, 2009
Revised Affordable Housing Program Implementation Plan

August 28, 2009
2009 Affordable Housing Program: Round B Now Open 

August 25, 2009
Revised Affordable Housing Program Implementation Plan

August 6, 2009
AHP: Rental Project Subsidy Disbursement Request Prior to Start of Construction 

February 18, 2009
Affordable Housing Program: Round A Now Open 

February 10, 2009
Revised Affordable Housing Program Implementation Plan

December 22, 2008
Revised Affordable Housing Program Implementation Plan 

December 19, 2008
AHP Subsidy Disbursement Prior to Construction Start (Rental Projects)

August 29, 2008
Revised Affordable Housing Program Implementation Plan 

July 25, 2008
AHP Retention Regulation: Default Interest Provisions

July 15, 2008
Revised AHP Documentation Requirements for New Construction, Owner-Occupied Projects 

March 17, 2008
New AHP Monitoring Requirements

January 22, 2008
AHP Eligibility Criteria: Completed Rental Projects 

August 31, 2007
Changes to Income Qualification Guidelines and New Workbook

August 10, 2007
AHP Projects with Developer Soft Loans and Shared Equity Appreciation Features  

All forms and documents related to the AHP Program are available here.

Application Materials

AHP Application Package - Owner-Occupied Project (for reference only)  
AHP Application Package - Rental Project (for reference only) 

Rental Disbursement

AHP Disbursement Request
AHP Rental Disbursement Request Checklist
Acknowledgement of AHP Compliance Requirements – Rental Projects 
AHP Rental Financial Workbook
AHP Certificate of Project Owner, Initial Monitoring, Rental Project  
AHP Award Modification
RSMeans Construction Cost Estimate Guidelines
Promissory Note
Rider to Deed of Trust  

Owner-Occupied Disbursement

AHP Disbursement Request
AHP Owner-Occupied Disbursement Request Checklist
Acknowledgement of AHP Compliance Requirements – Owner-Occupied Projects
AHP Owner-Occupied Financial Workbook
AHP Household Income Qualification Workbook
AHP Award Modification 
AHP Certificate of Member, Initial Monitoring, Owner-Occupied Project
RSMeans Construction Cost Estimate Guidelines
Promissory Note 
Rider to Deed of Trust 

Compliance Monitoring

Acceptable Forms of Verification for Community Stability 
Acceptable Forms of Verification for Promotion of Empowerment 
AHP Household Income Qualification Workbook
AHP Certificate of Project Owner, Initial Monitoring, Rental Project 
AHP Rental Financial Workbook
AHP Certificate of Member, Initial Monitoring, Owner-Occupied Project
AHP Owner-Occupied Financial Workbook

Modification

AHP Direct Subsidy Agreement Rental Project
AHP Direct Subsidy Agreement Owner-Occupied Project
AHP Rental Financial Workbook
AHP Owner-Occupied Financial Workbook
AHP Award Modification 

Repayment/Assumption

AHP Notice of Foreclosure Workbook
AHP Notice of Resale or Refinance with Subsidy Repayment Workbook
AHP Notice of Refinance with Subordination Workbook 

Policy Updates and Regulations

AHP Implementation Plan

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