The First Home Clubsm (FHC) is a first-time homebuyers program that provides subsidy funds to assist households earning 80% or less of area median income ("AMI") overcome the financial difficulties of purchasing a home. The program provides households with $4 match for every $1 of savings (up to $7,500) that they systematically deposit in their dedicated account with our member bank. A second grant of up to $500 (no match required), is available to defray homebuyer education and credit counseling costs of a Federal Home Loan Bank ("HLB") approved non-profit counseling agencies for households which purchase a home using FHC assistance.
The matching funds are to be used for down payment and closing cost assistance. The homebuyer counseling defrayal grants are awarded to HLB approved non-profit homebuyer counseling agencies and the grant funds are used only to help defray the counseling costs for FHC households which close on a home.
It is up to the discretion of the member institution and ultimately the HLB. Decisions will be based on the homeowner’s written explanation of the missed deposit as well as the consistency of the remaining savings history.
Once a household becomes a qualified participant in the program, the income level that was submitted (at time of enrollment) will be locked-in through the term of the subsidy grant.
If it has been at least three (3) years since the household has owned a home, then they are eligible for the program. If the household is that of a single parent or a displaced homemaker (a previously owned home has been sold due to dissolution of a household) the 3 year rule is waived.
No. Once a household has been approved and a closing date has been set, the funds are disbursed to the member bank’s DDA on or around the requested funding date or the scheduled date of closing. The member institution will then disburse the funds on behalf of the household at the time of closing.
There is a five-(5) year retention period beginning once the funds have been disbursed to the member bank. A lien is placed on the property, which is dissolved after the retention period.
The First Home Club lien is generally in second lien position, however, in some circumstances, it is acceptable for the lien to be moved to another position.
The household must remain in compliance with the FHC regulations for 5 years. In the event that the property is sold to a household who is not income eligible for FHC subsidy, the HLB may request that a pro-rata amount of the subsidy be returned. During each year of the 5-year retention period, 20% of the grant is forgiven.
There are three (3) enrollment periods throughout the year. Generally, they are announced via e-mail, first class mail, and on our website at www.fhlbny.com.
In order to ensure availability of funds, the HLB may, at any given time, limit the number of households that a member may enroll during a particular enrollment period.
Yes, the funds may also be used in conjunction with other grant programs including the HLB’s Affordable Housing Program ("AHP"); however the combined FHC and AHP subsidy funds may not exceed $20,000 per household. If the use of FHC subsidy was not originally approved when the AHP application was scored, the application will have to be rescored reflecting the use of FHC subsidy to determine the effect of the ranking.
Under very limited circumstances, a household may transfer to another approved member institution. In order to commence the transfer, a letter must be submitted to the HLB by the member bank who is willing to let the household transfer. Please refer to FHC Program Guidelines for the appropriate procedure.
The HLB may extend the date of expiration for a household’s 24-month enrollment period for a one time 12 month extension. All program requirements must be fulfilled, (savings and home ownership counseling completed). Members are expected to monitor their FHC households to insure that enrollment status is correct. Extensions must be made prior to the date of expiration. Please refer to FHC Program Guidelines for the appropriate procedure.
The downpayment and closing cost subsidy of up to $7,500 is directly related to the purchase of a particular home. Home ownership counseling is an FHC programmatic requirement for which up to $500 may be granted to defray the costs of the non-profit housing agency providing the counseling and associated services for an FHC household which has closed on a home.
No. It is the choice of the HLB member whether to participate in the special set-aside program for the defrayal of nonprofit housing agency counseling costs or not.
On a one time basis, the non-profit housing agency will provide a cost basis for providing home ownership counseling, financial education and other expenses directly associated with fulfilling HLB FHC requirements.
While approval of the homeownership counseling program and of proof of associated costs will be granted routinely once granted. Each FHC approved participating member must forward their endorsement of the syllabus and costs and confirm their decision to participate in the AHP set-aside grant program to defray the costs of each specific non-profit housing agency home ownership counseling program.
No. The grant amounts are independent of each other. Housing agency per household counseling expenses are the same regardless of the amount of the FHC closing cost and downpayment assistance grant.
No. As a condition of participation in the FHC program, members are expected to provide households certain financial assistance. Since the FHC program requires members to offer a homeownership counseling program, members may provide counseling or arrange for non-profit housing agencies to provide counseling. The set-aside is specifically intended to help defray the costs of non-profit housing agencies providing counseling.
