AHP: Member Rewards & Responsibilities

Participating in our Affordable Housing Program (AHP) is an opportunity to strengthen existing business relationships and attract new customers and accounts. Your participation may better position your institution to compete for the construction, permanent, or home mortgage loans on AHP-assisted projects. Collaborating with a community nonprofit to apply for AHP funds is also one way to receive CRA service credits from your regulator.

The Member’s Role During Disbursement

Subsidies received by a member must be disbursed to the project sponsor and applied to a project or program costs within thirty days of the date funds are posted to a member’s Settlement Transaction Account. Projects may be assessed an interest charge on funds not used within the thirty-day period.

AHP Retention Mechanisms

Members must ensure that AHP retention agreements are duly executed and recorded. The Bank provides templates for AHP promissory notes and riders to the member’s deed of trust for use on both rental and owner-occupied projects. If these templates are not used or are substantially modified, an opinion letter on behalf of the member must be submitted along with the non-template retention documents. The Bank will not review the member’s AHP retention documents for the purpose of determining the legal enforceability of the documents. Rather, the Bank expects and relies on the member to prepare and submit to the Bank appropriate retention documentation that satisfies AHP regulatory requirements and is legally enforceable by the member against the project.

The Member’s Role During Compliance Monitoring

The member may be required to exercise reasonable collection efforts to recapture AHP subsidy in the event of noncompliance with AHP regulations or project scoring commitments.