Dear Community Lending Partner:
The Federal Home Loan Bank of San Francisco has revised the Affordable Housing Program (AHP) income qualification guidelines for the competitive program and the two set-aside programs—the Individual Development and Empowerment Account (IDEA) Program and the Workforce Initiative Subsidy for Homeownership (WISH) Program. We have also consolidated all previous income qualification forms into a single Excel workbook—the AHP Household Income Qualification Workbook—which members and sponsors will find easier to use.
The revised guidelines will go into effect immediately. Any household that is enrolled in the IDEA or WISH program or that is income-qualified for the competitive AHP on or after September 1, 2007, must be qualified according to the revised income qualification guidelines included in the AHP Household Income Qualification Workbook.
Changes to Income Qualification Guidelines
We have made the following changes to the Income Qualification Guidelines – Affordable Housing Program – Competitive and Set-Asides (IDEA and WISH) (FC 2258):
- All forms of educational assistance paid directly to a student, educational institute, or a veteran are not considered to constitute annual income.
- HUD Section 8 Vouchers are not considered to constitute annual income.
Changes to Acceptable Forms of Income Verification
The Bank has made the following changes to the Acceptable Forms of Verification for Household Income Qualification (FC 2259):
- Regular employment must be verified with a verification of employment (VOE) form completed by employers and/or the most recent, consecutive pay stubs for at least 3 pay periods.
- Seasonal employment must be verified with a VOE form for the current year from all employers, signed federal tax returns for the 2 most recent years, and a completed Unemployment Benefits Verification Request for the current year.
- Commission-based employment must be verified with a VOE form for the current year from all employers and signed federal tax returns for the 2 most recent years.
- Self-employment must be verified with signed federal tax returns (with Schedule C) for the 2 most recent years and either the most recent profit and loss (P&L) statement showing 3 months of earnings or a notarized self-affidavit of earnings anticipated over the next 12 months.
- Any income-earning assets (interest, dividends, and other investments) that are greater than $5,000 must be verified with the most recent account statement or other holding documentation from the financial institution indicating the cash value and interest rate or income generated by the assets.
- Income verification tips have been expanded to include specific calculation practices to be applied to employment situations including overtime, seasonal employment, and unemployment benefits.
AHP Household Income Qualification Workbook
We have consolidated all previous income qualification forms into a single Excel workbook—the AHP Household Income Qualification Workbook. This new workbook contains the following worksheets:
- AHP Income Qualification Guidelines (FC 2258)
- Acceptable Forms of Verification for Household Income Qualification (FC 2259)
- Instructions for using the AHP Household Income Qualification Worksheet
- AHP Household Income Qualification Worksheet, which is designed with built-in formulas that calculate not only annual projected income, but also details such as the household member’s age (based on date of birth) and the household’s Area Median Income (AMI) as a percentage for their specific Metropolitan Statistical Area (MSA), as determined by current HUD Income Limit Statistics
The revised workbook is available on our website. If you have any questions about these changes, please call the Community Investment Department at (415) 616‑2542.
James E. Yacenda
Vice President and Community Investment Officer