To: All Members and Interested Community Groups
I am pleased to announce the start of our 2009 Affordable Housing Program (AHP) Round A competition. Last year, the Bank awarded $79 million in AHP subsidies to support the efforts of members and their community partners to expand the supply of affordable rental and owner-occupied housing in their communities.
This year, with the economic downturn posing new challenges to securing financing for affordable housing development, we have increased both the maximum amount of AHP subsidy that can be awarded per project, from $1 million to $1.5 million, and the total amount of funding that a member can apply for in a single round, from $5 million to $6.5 million. We believe these changes can help bridge gaps in financing that have grown wider as a result of the loss or lessening of funding traditionally available from a variety of other sources.
Only members of the Bank may submit AHP applications; we recommend that interested community groups contact a Bank member early in their planning process about sponsoring an application. Our Community Investment staff is available to help identify local members, and information about the projects and sponsors that were awarded AHP subsidies in 2008 is available on our website along with this year’s application materials.
The deadline for submitting an application for Round A is Wednesday, April 1, 2009.
Funded each year with 10% of the Bank’s annual income, our AHP is a proven, flexible source of gap financing for the development of affordable housing that meets the unique needs of individual communities. Since 1990, $530 million in AHP competitive program funds have been used to generate nearly 89,000 units of quality affordable housing targeted to low- and moderate-income households in Arizona, California, and Nevada, as well as other regions served by our member financial institutions.
I hope you will participate in the first round of our 2009 AHP funding competition. In addition to making more affordable housing available where it is most needed, AHP-funded projects can also provide an important economic boost to our communities.
For more information about this year’s AHP Round A competition, please contact the Community Investment Department.
President and Chief Executive Officer