To All Members and Project Sponsors:
In response to current conditions in the housing market, we have revised our Affordable Housing Program (AHP) subsidy disbursement procedures and application review process for owner-occupied projects involving new construction.
As a condition of subsidy disbursement for owner-occupied projects awarded AHP subsidy in the 2008A competitive AHP round or later that involve new construction and use conventional construction financing, the Bank will require project sponsors to submit documentation showing that:
In addition, starting in the 2008 Round B AHP competition, sponsors of new construction, owner-occupied projects (excluding self-help construction) will be required to submit the project’s market study. The market study must include a comprehensive discussion and analysis of the demand for, and supply of, the types of units proposed; the projected absorption rates of the constructed units; and how the project sponsor plans to market the units.
If you have any questions, please call the Community Investment Department at (415) 616-2542.
James E. Yacenda
Vice President and Community Investment Officer