To All Members and Project Sponsors:
We have revised our Affordable Housing Program (AHP) Implementation Plan. The following changes are effective immediately:
The Bank has clarified the definition of sponsor ownership interest in a rental project. The definition now includes a project sponsor that controls an affiliate (or affiliates) that has a direct ownership interest in the project.
The benchmarks for Cash Cost per Unit, applicable to rental projects, and Cash Cost to Construct Homes, applicable to ownership projects, have been replaced by a new benchmark, Construction Cost per Square Foot. Construction Cost per Square Foot is defined as the total development cost, excluding land costs and soft costs, divided by the total square footage of the project building(s).
The AHP Application package includes gross residential square footage cost estimates provided by the RSMeans Company. If a project’s costs exceed these estimates, a written explanation, complete with supporting third-party documentation (e.g., architect or contractor estimates), is required.
James E. Yacenda
Vice President and Community Investment Officer