Frequently Asked Questions

About the Affordable Housing Program: Owner-Occupied Projects

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General Questions

  1. What is the source of Affordable Housing Program (AHP) funds?
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    • The AHP is fully comprised of private funds that are solely derived from a portion of the previous year’s net income of the Federal Home Loan Bank of New York (HLB). They are neither appropriated from the federal budget nor through taxpayer dollars. AHP subsidy is not to be considered taxable income.
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  2. Who may apply for AHP funds?
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    • Only banking institutions or insurance companies who are HLB stockholders in good standing (members) may submit AHP applications on behalf of private not-for-profit corporations, a state or a political subdivision of a state, state housing agencies, local housing authorities, or for-profit developers. (Please note that competitive scoring will vary depending on the governmental or non-profit status of the project’s primary sponsor.)
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  3. When are AHP applications due?
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    • The HLB customarily accepts competitive AHP application rounds on a semi-annual basis. The deadlines for submission of AHP applications are typically the first business day in March and September.
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  4. What is the maximum amount of AHP subsidy that the HLB provides to a homeowner project?
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    • $20,000 per dwelling or 10% of the total pool of AHP subsidy offered for a given competitive round, whichever is less.
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  5. How can AHP funds assist homebuyers and existing homeowners?
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    • First, AHP funds may be used to finance downpayments, closing costs, homeowner counseling (up to $500), and/or interest rate buydowns in connection with the acquisition of an owner-occupied dwelling. Second, AHP funds may also be used to finance the rehabilitation of an owner-occupied dwelling, including costs related to a developer’s fee. Third, AHP funds may also be used to finance hard construction costs and certain soft costs (subject to the consent of the HLB) associated with the erection of new homes or the renovation of abandoned dwellings for subsequent sale to eligible households. In any case, the AHP subsidy must directly benefit the owner-occupant household.
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  6. What is considered an eligible homeownership property?
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    • One-to-four-family owner-occupied homes, co-ops, condos, and mobile homes that are attached to a permanent foundation. All units within the project must be targeted to households who earn 80% or less of the area median, adjusted for family size. For AHP purposes, dwellings that contain one or more rental units must be owner-occupied and shall be considered a single residential unit.
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  7. May a sponsor apply to more than one Federal Home Loan Bank (FHLBank) for an AHP subsidy for the same project?
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    • Yes. However, the sponsor should disclose on the application form how much AHP subsidy has been requested from each FHLBank and reflect all AHP allocations on the appropriate Worksheet (see AHP/APP-104). If any AHP applications are pending, the project will need to demonstrate a continued need for each award if every AHP application is subsequently approved for funding.
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  8. Can AHP subsidy funds be used with other grant programs?
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    • Yes, AHP funds may be used in conjunction with other grant programs and are customarily used to leverage all types of funding sources. Competitive AHP subsidy funds may also be used to supplement the HLB’s First Home Clubsm (FHC), to a collective maximum of $20,000 per household. However, if the concept of combining an AHP and FHC subsidy was not originally specified and approved in the competitive AHP application, the sponsor must contact the HLB and request a project modification.
  9. Can competitive AHP subsidy funds be used to refinance owner-occupied dwellings?
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    • No.
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Household Eligibility Questions

  1. Who is an eligible household?
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    • A household who earns 80% or less of the applicable area median income, adjusted for family size.
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  2. When is a household’s income established to determine eligibility for AHP assistance?
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    • For Habitat-type projects, homeownership programs that employ Individual Development Accounts (IDA), and owner-occupied rehabilitation projects, a household’s income and AHP eligibility are determined at the time that they are enrolled and approved to participate in the project. For all other homebuyer initiatives, a household’s income and AHP eligibility are determined at the time that they are approved for mortgage financing (i.e., the issuance date of the loan commitment).
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  3. Should a household’s income calculation include court-ordered monthly child support payments, even if the estranged parent is in default for non-payment of such support?
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    • Yes.
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  4. Is a student eligible to purchase an AHP-assisted dwelling?
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    • No. An AHP-assisted homebuyer must be credit worthy and duly employed, or at least furnish evidence that they receive a recurring and reliable stream of income derived through a pension, disability award, Social Security, Individual Retirement Accounts, or other recurring sources.
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  5. If a household requires a co-bondsman in order obtain a mortgage to purchase the dwelling, will the co-borrower’s income be included in the income determination calculation?
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    • If the co-bondsman’s name will appear on the deed, even if the co-bondsman will not reside at the AHP-assisted property, the co-bondsman is actually a co-borrower and their income will be included when determining the household’s eligibility.  Conversely, if the co-bondsman’s name will not appear on the deed, and they will not reside at the AHP-assisted property, they are indeed a co-bondsman and, as such, their income will not be included to determine income household eligibility.
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  6. Is this an asset-based program?
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    • No. Eligibility is based solely on income.  As such, earnings derived from assets (such as interest or dividends) and imputed income from assets such as real estate must be added to other income sources in order to determine income eligibility.  Please refer to Guidelines for Determining Income Eligibility (AHP-103) for further details.
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  7. Must a household exhaust a certain level of personal assets prior to utilizing AHP funds?
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    • No.
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AHP Funding Requisition Questions

  1. When can a project sponsor begin to draw down committed AHP funds?
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    • Once the HLB approves a project for an allocation of AHP funds, the HLB issues an AHP commitment package to the member, which includes a tri-party AHP Subsidy Agreement and Memorandum of Understanding (AHP-108) which an authorized representative of the project’s sponsor must execute along with the member.  Once the HLB receives all necessary AHP commitment agreements, the project sponsor may requisition the AHP funds by submitting all required forms and supporting documentation specified in the AHP Application Drawdown Package (AHP-127 through AHP-133). 
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  2. Does the HLB disburse funds directly to the project sponsor or homeowner?
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    • No. AHP funds are credited to the Demand Deposit Account (DDA) that a member maintains at the HLB.  The member, in turn, should disburse the AHP funds to the project sponsor or homeowner within a 30-day period.
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  3. How long does the HLB maintain AHP funding reservations?
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    • The initial AHP commitment is issued for a period of approximately six months.  Thereafter, subject to adequate supporting documentation that the sponsor has a reasonable pipeline of households and the development of the project is satisfactorily progressing, the HLB may, in its sole discretion, approve subsequent extensions of the AHP commitment for a period of time not to exceed six months.  If the AHP funds have not been fully drawn within 3 years of the issuance date of the AHP commitment, the HLB reserves the right to cancel the AHP commitment.
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Homebuyer Project Questions

  1. For households who receive AHP subsidy to purchase a home, how long will the HLB hold an interest in their property?
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    • AHP-assisted homebuyers must own and occupy their home in accordance with the federal AHP regulation for a period of 5 years (Retention Period), commencing with the closing date.  The member must publicly record a “soft” AHP subordinate lien against the property for a 5-year term (see AHP Long-Term Retention Documents For Homeowner Projects under AHP-111 and 112).   The AHP subordinate lien dissolves at the conclusion of the Retention Period. 
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  2. In what position will the AHP lien be?
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    • The AHP lien, by definition, is a subordinate lien.  Therefore, it is generally second or third in position, subject to the requirement(s) of the primary mortgage lender and the dollar value of any secondary loans and other grants. 
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  3. Does a standard HUD-1 Settlement Statement need to be prepared when a household receives AHP subsidy?
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    • The federal Real Estate Settlement Procedures Act (RESPA) pertains to all loans that are secured with a mortgage placed on a one-to-four-family residential property. In accordance with RESPA, a HUD-1 Settlement Statement is the standard, industry-wide accepted form that accounts for all closing costs and charges related to a home purchase. Since the AHP is a federally regulated program and our members are either regulated by or have deposits that are insured by an agency of the federal government, all AHP-assisted transactions must be memorialized using a standard HUD-1 Settlement Statement.
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  4. Is a household allowed to receive any cash back at closing?
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    • A member may permit cash back to an AHP-assisted homebuyer at closing on the mortgage loan in an amount not to exceed $250, in order to partially reimburse the household for any pre-closing expenses directly related to the acquisition of their dwelling, such as mortgage application fees, credit report fees, appraisal fees, or property inspection fees (but excluding earnest money). Households who qualify for rehabilitation assistance under the AHP subsidy should not receive any cash back at the time that the home renovations or other improvements are completed. HLB staff will subsequently evaluate the HUD-1 Settlement Statement in order to confirm that these limitations have been satisfied.
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  5. Is a sponsor who is using AHP funds to assist households purchase a home permitted to charge a developer’s fee or use AHP subsidy for administrative expenses?
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    • No.  However, as of the First Round 2008, subject to the approval of the HLB, AHP funds may be provided to the member at time of closing in order to directly reimburse the sponsor up to $500 per household for credit counseling and homebuyer education expenses.
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Owner-Occupied Rehabilitation Project Questions

  1. For households who receive AHP subsidy to rehabilitate their homes, how long will the HLB hold an interest in their property?
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    • AHP-assisted homebuyers must own and occupy their home in accordance with the federal AHP regulation for a period of 5 years (Retention Period), commencing with the date that the renovations and related rehabilitation work are completed.  The member must publicly record a “soft” AHP subordinate lien against the property for a 5-year term (see AHP Long-Term Retention Documents For Homeowner Projects under AHP-111 and 112).   The AHP subordinate lien dissolves at the conclusion of the Retention Period.
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  2. In what position will the AHP lien be?
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    • The AHP lien is, by definition, a subordinate lien.  Therefore, it is generally second or third in position, subject to the requirement(s) of the primary mortgage lender and the dollar value of any secondary loans and other grants.  In cases where a property is free of any encumbrances, the AHP lien would theoretically be in first position.
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  3. Must a household requesting subsidy to rehabilitate an existing home be current in their payments for real estate taxes, property insurance and existing mortgage(s)?
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    • Yes. Since the AHP subsidy is a recoverable grant, the owner-occupant must be creditworthy and financially responsible.  If an owner-occupant is in default for non-payment of taxes, insurance, or other home mortgages, the security of the AHP subsidy would be placed at risk.
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  4. May a household who is currently approved for forbearance or other workout agreement with a mortgage lender receive AHP subsidy to rehabilitate their home?
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    • No. Since the AHP subsidy is a recoverable grant, the owner-occupant must be creditworthy and financially responsible.  Any delinquency with a primary lender places the security of the AHP subsidy at risk.
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  5. What is a “life estate”? If a household has a life estate, is the household eligible to receive AHP subsidy in order to rehabilitate an existing home? How is the household’s income eligibility determined?
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    • A life estate designates the ownership of a person’s real property for the duration of his or her life.  It is typically used as an estate planning tool and may avoid probate, thereby ensuring that an intended heir will receive title to the property. AHP subsidy may be used to renovate or rehabilitate a property in life estate status.  The eligibility of the household is solely determined by the current income of the family member(s) who hold(s) the life estate and reside(s) at the property, exclusive of the designated heir(s).
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  6. Is a sponsor who is using AHP funds to assist households renovate their homes permitted to charge a developer’s retention or use AHP subsidy to finance the salary of an in-house rehabilitation specialist or other administrative expenses?
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    • A sponsor may retain up to 15% of the hard construction/rehabilitation costs as a developer’s fee.  Additional AHP funds cannot be requested to finance any other expenses such as a rehabilitation specialist’s salary or other administrative expenses.
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AHP Homeowner Retention Agreement Questions

  1. Who pays the cost of recording the AHP long term retention documents?
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    • For homebuyer assistance projects, all lien recording expenses should be itemized on the HUD-1 Settlement Statement and would be considered an eligible AHP expense.  If paid outside of the closing, the member and the sponsor have the discretion to determine whether the costs will be borne by the member, the sponsor or the household. For owner-occupied rehabilitation projects, the sponsor may not receive additional AHP funds in order to finance recording expenses. The member and the sponsor have the discretion to determine whether the costs will be borne by the member, the sponsor or the household.
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  2. If a homeowner sells their AHP-assisted dwelling prior to the conclusion of the Retention Period, must the AHP subsidy be repaid?
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    • In the event that the property is sold to another household whose documented income does not exceed 80% of the area median income, no AHP subsidy needs to be repaid.  Otherwise, the household must repay a pro rata share of the AHP subsidy to the member which, in turn, must be returned to the HLB forthwith.   For every month that the household owned and occupied their dwelling in accordance with the regulatory requirements of the AHP, 1/60th of the AHP subsidy shall be forgiven and not subject to recovery.   
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  3. If the homeowner dies before the conclusion of the Retention Period, is the estate responsible for repaying the AHP subsidy?
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    • If an income-eligible heir inherits the property, the AHP subsidy does not need to be repaid, provided that the heir will occupy the dwelling and comply with the AHP regulatory requirements for the duration of the Retention Period.  Otherwise, the estate is liable to the member for a pro rata share of the AHP subsidy which, in turn, must be returned to the HLB forthwith.   For every month that the household owned and occupied their dwelling in accordance with the regulatory requirements of the AHP, 1/60th of the AHP subsidy shall be forgiven and not subject to recovery. 
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  4. Who prepares a discharge of the AHP lien at the conclusion of the Retention Period?
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    • If the project has been duly managed in accordance with the requirements of the AHP regulation, the project sponsor or owner may request the member to prepare and execute a legal release that discharges the AHP subordinate lien upon completion of the Retention Period.
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  5. If the homeowner chooses to refinance any other mortgages on the property prior to the conclusion of the Retention Period, must the AHP subsidy be repaid??
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    • No, as long as the AHP subordinate lien remains in place and the household continues to occupy the dwelling in accordance with the regulatory requirements of the AHP.
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AHP Homeownership Monitoring Requirements and Member Concerns

  1. What are the benefits to Members who participate in the AHP?
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    • The benefits include receiving service award credits during the member’s CRA examination for serving as a conduit for the AHP grants; investment credit if they originate construction or permanent mortgages to the project assisted with AHP; the opportunity of new business with the sponsor and assisted households to open new accounts or apply for new permanent mortgages, second mortgages, home equity loans, and personal loans; the possibility of positive publicity; and enhanced political and community relations.
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  2. What are the risks to members who participate in the AHP?
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    • Generally, the only risks include that the grants the member served as a conduit for may be classified as "contingent liabilities" and thus impact the member’s balance sheet; and the time and expense that may be associated with resolving an event of non-compliance.  In the worst case, the HLB could debit the member’s DDA for the amount due in that event, but the member is only responsible to transmit the amount recovered through reasonable collection efforts, as long as the AHP retention agreements have been duly executed and placed on public record.
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  3. What are the member’s responsibilities in securing the AHP subsidy during the construction phase if AHP funds are used to construct or rehabilitate homes for subsequent sale to eligible households?
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    • Only in limited cases will the HLB and the member agree to disburse funds during the construction period for such projects. Instead, funds will be disbursed once the an owner-occupant executes the standard AHP retention agreements (see AHP-111 and AHP-112) at time of closing. However, if an agreement is made that funds will be disbursed to the sponsor during the construction phase, the AHP regulation does not address how AHP funds should be secured during the construction phase of development. Therefore, the member may, in their sole discretion, require that the project sponsor or developer execute a legally-enforceable mechanism that will adequately secure the AHP subsidy during the construction phase and facilitate a foreclosure action if the project is not brought to completion or encounters some other event of regulatory non-compliance. The HLB has not designed standard agreements for this situation. The member has the right to develop appropriate legal agreements. Once executed and recorded, the member may release a pro-rated share of the AHP lien once an owner-occupant executes the standard AHP retention agreements (see AHP-111 and AHP-112) at time of closing. Otherwise, the member may keep the existing mechanism in place and subordinate it to the new end loan when each respective owner-occupant takes title to a project unit.
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  4. What are the AHP monitoring requirements for owner-occupied projects?
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    • Most of the required supporting documentation is customarily submitted with the drawdown package.  Any supplemental documentation not previously provided with drawdown package is due with the initial AHP compliance monitoring report.  Homeownership projects are not required to submit long-term monitoring reports.  The member must simply report to the HLB regarding any sales or related recovery of AHP subsidy that arise during the Retention Period.  If an AHP-assisted owner-occupant defaults on a mortgage loan or commits any other act of non-compliance under the AHP regulation, the member, must exercise their legal rights as a subordinate lien holder and join in on any foreclosure action that is commenced against the AHP-assisted property.  Kindly refer to the AHP Compliance Monitoring Guidelines (AHP-102), the AHP Compliance Late Receipt Policy (AHP-104), and the AHP Recapture Guidelines (AHP-105) for complete details.
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About the Affordable Housing Program: Rental Projects

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General Questions

  1. What is the source of Affordable Housing Program (AHP) funds?
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    • The AHP is fully comprised of private funds that are solely derived from a portion of the previous year’s net income of the Federal Home Loan Bank of New York (HLB). They are neither appropriated from the federal budget nor through taxpayer dollars. Therefore, AHP-assisted projects are not inherently subject to the Davis-Bacon Act or other prevailing wage legislation.
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  2. Who may apply for AHP funds?
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    • Only banking institutions or insurance companies who are HLB stockholders in good standing (members) may submit AHP applications on behalf of private not-for-profit corporations, a state or a political subdivision of a state, state housing agencies, local housing authorities, or for-profit developers. (Please note that competitive scoring will vary depending on the governmental or non-profit status of the project’s primary sponsor.)
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  3. When are AHP applications due?
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    • The HLB customarily accepts competitive AHP application rounds on a semi-annual basis.  The deadlines for submission of AHP applications are typically the first business day in March and September. 
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  4. What is the maximum amount of AHP subsidy that the HLB provides to a rental project?
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    • $20,000 per unit (including any AHP subsidy that the HLB previously awarded to the project) or 10% of the total pool of AHP subsidy offered for a given competitive round, whichever is less.
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  5. How can a rental project use AHP funds?
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    • AHP funds may be used either for acquisition (in certain situations, subject to the consent of the HLB), hard costs associated with the rehabilitation or construction of residential units, certain soft costs (see AHP/APP-108, tab A for further details) or a developer’s retention. 
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  6. What is considered an eligible rental property?
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    • Single- and multi-family residences, apartment houses, single room occupancy facilities, group homes, shelters and transitional residences are eligible.  At least 20% of all units within the project must be targeted to households who earn 50% or less of the area median income, adjusted for family size.
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  7. May a sponsor apply to more than one FHLB for AHP subsidy for the same project?
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    • Yes. However, the sponsor should disclose on the application form how much AHP subsidy has been requested from each FHLBank and reflect all AHP allocations on the Development Budget (see tab B in AHP/APP-108).  If any AHP applications are pending, the project will need to demonstrate a continued need for each award if every AHP application is approved for funding.  
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  8. Can the AHP subsidy funds be used with other grant programs?
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    • Yes, AHP funds may be used in conjunction with other grant programs and are customarily used to leverage all types of funding sources.

Project-Specific Questions

  1. Does the HLB include the superintendent’s unit(s) when determining the project’s occupancy goals and AHP subsidy per unit?
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    • No. The superintendent’s unit(s) is(are) customarily excluded from the proposed targets and the average amount of AHP subsidy per unit.
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  2. Can a property management agent receive points as a non-profit sponsor even if they will not purchase the project until all funding sources have been procured?
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    • To qualify for points under the sponsorship category, the sponsor must submit appropriate evidence that they satisfy the definition of a government entity or not-for-profit corporation (see AHP/APP-106 and AHP/APP-107) as well as site control as of the date of the AHP application.  For projects that are utilizing low-income housing tax credits, the primary sponsor must satisfy the definition of a government entity or not-for-profit corporation and have an ownership interest in the partnership structure (also see AHP/APP-106 and AHP/APP-107) in order to qualify for points in this category.
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  3. Can AHP subsidy be used to pay rehabilitation costs for older projects?
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    • Yes, provided that the proposed renovations do not pre-date the AHP application.  Please also note that the application for such initiatives must include financial documentation that verifies the amounts available in the project’s replacement reserve accounts and any limitations on their use.  A contribution from the reserves should be listed as a source on the project’s development budget.
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  4. Can AHP subsidy be used to pay refinance debt for older projects?
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    • No. Older projects may only use AHP subsidy to finance renovations or other capital improvements, including the creation of new affordable units.
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  5. What are the limits on the amount of rent that can be charged in an AHP-assisted project?
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    • Use Rental Projects Worksheets tab D (AHP/APP-108) to calculate the maximum rent that can be charged which is 30% of the income of a household earning the maximum income in each targeting band for the household size given on the worksheet for each bedroom-type.  If a tenant receives some type of rental assistance, a higher rent level (such as the Fair Market Rent) may be used for the unit, subject to the consent of the agency that has agreed to provide the rental assistance.
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  6. In a special needs project, how are the number of units determined?
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    • For projects in which all residents are unrelated individuals who may share a room or a unit, the number of units is, in fact, the total number of beds.  In other words, the targets must correspond to the total number of residents served.  For projects that serve an adult with one or more dependents in which the household may share a room or unit with other households, the sponsor will need to estimate the minimum number of households they anticipate they may serve.   For example, if the project will have 10 beds, the project may serve 5 households which have a total of 5 dependents at most or 3 households with 3 to 4 children per household.  Three should be used as the number of units in order to ensure that the project remains in compliance throughout the Retention Period.
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AHP Funding Requisition Questions

  1. When can a primary sponsor begin to draw down committed AHP funds?
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    • Once the HLB approves a project for an allocation of AHP funds, the HLB issues an AHP commitment package to the Member, which includes a tri-party AHP Subsidy Agreement and Memorandum of Understanding (AHP-109) which an authorized representative of the project’s primary sponsor must execute along with the member.  Once the HLB receives all necessary AHP commitment agreements, the primary sponsor may requisition the AHP funds by submitting all required forms and supporting documentation specified in the AHP Application Drawdown Package (AHP-122 through AHP-126).
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  2. Does the HLB disburse funds directly to the project sponsor?
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    • No. AHP funds are credited to the Demand Deposit Account (DDA) that a member maintains at the HLB.  The member, in turn, should disburse the AHP funds to the project sponsor or related entity thereof within a 30-day period.
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  3. How long does the HLB maintain AHP funding reservations?
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    • The initial AHP commitment is issued for a period of approximately six months. Thereafter, subject to adequate supporting documentation that the sponsor has procured all necessary financing and the development of the project is satisfactorily progressing, the HLB may, in its sole discretion, approve subsequent extensions of the AHP commitment for a period of time not to exceed six months.  If the AHP funds have not been fully drawn within 3 years of the issuance date of the AHP commitment, the HLB reserves the right to cancel the AHP commitment.
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The AHP Compliance Retention Period for Rental Projects

  1. How long will the HLB have an interest in AHP-assisted projects?
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    • AHP-assisted projects must comply with the federal AHP regulation for a period of 15 years (Retention Period).  The Retention Period begins on the date that the Certificate of Occupancy is issued.  (For projects that are being rehabilitated, the AHP retention period customarily commences with the issuance date of a certificate of substantial completion.)  The member must publicly record an AHP subordinate lien against the property for a 15-year term (see AHP-113 through AHP-121).
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  2. In what position will the AHP lien be?
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    • The AHP lien may be subordinate to other funding sources, as required by the other lenders. The AHP lien is customarily subordinate to all loans and other repayable debt.  It should be positioned in accordance with its value compared with the project’s funding sources, including other grants.
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  3. Who pays the cost of recording the AHP long term retention documents?
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    • AHP funds may not be used to finance the cost of recording the AHP subordinate lien or related retention agreements. The member and the sponsor have the discretion to determine whether such costs will be borne by the member, the sponsor, or the project’s development budget.
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  4. If the owner of the project sells the project site prior to the conclusion of the Retention Period, how much AHP subsidy must be repaid?
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    • In the event that the property is sold to a party or entity that does not agree to assume the long-term affordability restrictions and other AHP regulatory requirements during the balance of the Retention Period, the entire amount of the AHP subsidy must be repaid.
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  5. What happens if the owner of project wants to alter the rank of the AHP subordinate lien?
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    • Both the HLB and the member must consent to such a request.  In such cases, HLB staff must receive an updated sources and uses of funds statement, along with a revised operating pro forma.  If the new financial statements confirm the rationale for a restructuring of the project’s debt, as well as the project’s continued need for AHP subsidy, the HLB may, in its sole discretion, authorize the member, as the AHP lien holder, to execute a subordination agreement.  (Either the member or an agent of the project’s sponsor or owner must prepare such an agreement.)
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  6. Who prepares a discharge of the AHP lien at the conclusion of the Retention Period?
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    • If the project has been duly managed in accordance with the requirements of the AHP regulation, the project sponsor or owner may request the member to prepare and execute a legal release that discharges the AHP subordinate lien upon completion of the Retention Period.
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Household Eligibility Questions

  1. Is this an asset-based program?
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    • No. Eligibility is based solely on income.  As such, earnings derived from assets (such as interest or dividends) and imputed income from assets such as real estate must be added to other income sources in order to determine income eligibility.  Please refer to Guidelines for Determining Income Eligibility (AHP-103) for further details.
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  2. When is a household’s income calculated to determine eligibility for AHP assistance?
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    • If a project is to be rehabilitated and existing tenants currently occupy the units, the sponsor should certify tenant incomes as of the AHP application date in order to ensure that the proposed income targets set forth in the AHP application are realistic and feasible.  In all other cases, household income is determined at the time that the household is approved to occupy a unit within the project.
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  3. What if a household’s income increases over the program’s allowable income level threshold after the household has moved in?
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    • Once a household’s income is initially certified, their income level remains in effect throughout the Retention Period or until they vacate the unit.  Annual re-certifications are not required.
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  4. What if a household’s size increases or decreases after the household has been approved to occupy a unit but before the household moves in?
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    • In this event, the sponsor or property manager must re-evaluate the household’s income to make appropriate adjustments based on the family members who will occupy the unit.
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  5. Should a household’s income calculation include court-ordered monthly child support payments, even if the estranged parent is in default for non-payment of such support?
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    • Yes.
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  6. Is a student eligible to occupy an AHP-assisted rental unit?
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    • Any student who is still a dependent child, whom a parent or guardian continues to claim on their federal income tax return, is not eligible to execute a lease agreement to rent an AHP-assisted unit.  The only students who may occupy an AHP-assisted unit are dependents of an income-qualified tenant or participants in a project that has been approved to target individuals who are aging out of foster care.  Children under the age of 18 who are wards of state are not eligible to occupy an AHP-assisted rental unit.
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AHP Monitoring Questions

  1. What are the initial monitoring requirements for rental projects?
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    • Much of the required documentation is submitted with the drawdown package.  Any remaining documentation that was not available at that time is due at the time of initial monitoring.  In addition, a final project certification form that has been duly executed by authorized representatives of the project sponsor and the member must be submitted along with evidence of timely disbursement of the AHP subsidy from the member to the project sponsor or its affiliate.  Kindly refer to the AHP Compliance Monitoring Guidelines (AHP-102) for further details. 
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  2. What are the long term monitoring requirements for rental projects?
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    • In the second year after project completion and annually thereafter until the end of the project’s Retention Period, the project sponsor must submit certifications in accordance with the reporting requirements set forth in the AHP Compliance Monitoring Guidelines (AHP-102).  In addition, more detailed reports and site visits may be required periodically depending on the amount of AHP subsidy that the project received or if the project was financed with proceeds from the sale of low- income housing tax credits.  Kindly refer to AHP Compliance Monitoring Guidelines (AHP-102) for further details. 
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  3. How will a sponsor know when to submit AHP monitoring reports?
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    • The HLB will initiate the request by sending out a letter or email that specifies which items are due and sets a submission deadline.  Kindly refer to the AHP Compliance Monitoring Guidelines (AHP-102) and AHP Compliance Late Receipt Policy (AHP-104) for complete details of the cycle for submission of various items. 
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  4. How long should tenant income documentation be retained?
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    • Sponsors and property managers should maintain income source documentation for at least one year following the intake process for any newly-certified tenants who appear on the rent roll.  The HLB reserves the right to periodically request such documentation, in accordance with the long-term monitoring requirements of the federal AHP regulation.  Kindly refer to AHP Compliance Monitoring Guidelines (AHP-102) for further details.  In any case, it is best to contact other funders and verify their requirements prior to discarding any income source documents.
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  5. If more than one tenant moves in and out of a unit between annual income certifications, does the HLB require income verifications on each tenant who occupied the unit during the year?
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    • No. You only need to report the initial occupancy date and income as of that date for all tenants in occupancy on the date the annual report is prepared.  It is recommended that sponsors and their property managers maintain available income source documentation for all new tenants who moved in during the year, including any who moved in and out during the same reporting period.
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Member Concerns

  1. What are the benefits to members who participate in the AHP?
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    • The benefits include receiving service award credits during the member’s CRA examination for serving as a conduit for the AHP grants; investment credit if they originate construction or permanent mortgages to the project assisted with AHP; the opportunity of new business with the sponsor and assisted tenants to open new accounts or receive construction, permanent or personal loans; the possibility of positive publicity; and enhanced political and community relations.
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  2. What are the risks to members who participate in the AHP?
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    • Generally, the only risks include that the grants the member served as a conduit for may be classified as "contingent liabilities" and thus impact the member’s balance sheet; and the time and expense that may be associated with resolving an event of non-compliance.  In the worst case, the HLB could debit the member’s DDA for the amount due in that event, but the member is only responsible to transmit the amount recovered through reasonable collection efforts, as long as the AHP retention agreements have been duly executed and placed on public record.
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  3. Is a member expected to participate in a project’s long-term AHP monitoring activities?
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    • No. Once a project has been placed into service and the HLB is in receipt of all required supporting documentation required under the initial AHP reporting requirements, all long-term monitoring is handled directly between the HLB and the sponsor, or its designated management entity.
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AHP Success Stories

Creation of Special Needs Housing in NJ
Member: RSI Bank
Sponsor: Volunteers of America-Greater NY

100 Housing Units for low-income Senior Citizens
Member: The Provident Bank
Project Name: South Plainfield Senior Housing

› Other Success Stories