The FHLBC’s Board of Directors recently approved the 2014 Affordable Housing Program Implementation Plan (Plan). The Plan sets forth certain policies, guidelines, and requirements applicable to the Affordable Housing Program (AHP) of the FHLBC, as required by the FHFA’s regulations. The FHLBC’s Affordable Housing Program consists of a homeownership set-aside program and a competitive program.

Significant changes from the 2013 Plan include:

Downpayment Plus® (DPP®) Homeownership Set-Aside

• The maximum grant to eligible households is $8,000.

• The member limit is $560,000.

• The property may be ‘out of district’ (i.e. not in Illinois or Wisconsin).

Competitive AHP

• There will be one online competitive application round with an application deadline of 5:00 p.m. Central Time on June 20, 2014.

• The maximum subsidy award per project is $850,000.

• The FHLBC limits the amount of subsidy for which a member may apply to a maximum of 25% of the subsidy announced for the application period. The limit was increased from 20% to 25% and will now be applied at the time of application instead of at the time of award.

• Changes to Project Feasibility Guidelines include:
  

  1. A simplified developer fee calculation.
  2. Established minimums and maximums for capitalized reserves; cash flow per unit/per year; and income, expense, and real estate tax trending.

• Development cost-per-unit guidelines will be published prior to the opening of the 2014 competitive application round.

• Changes to the Scoring Guidelines include:

  1. Any commitment tied to a number of units (e.g. special needs, homeless) will be calculated based on the total number of AHP-assisted units, as opposed to the total number of units in the project.

  2. Promotion of Empowerment: Providers of pre- and post-purchase homebuyer education and counseling must adopt the National Industry Standards for Homeownership Education and Counseling.

  3. Special Needs households are defined as having an individual with a physical, mental, and/or developmental disability. 

  4. Project Readiness is now limited to rental projects.

  5. Subsidy Per Unit: Rental projects requesting ≤$18,000/unit and homeownership projects requesting ≤$8,000/unit will receive the maximum number of points in this category.

  6. Community Stability has been expanded to include the rehabilitation of single family housing.

All potential users of the programs are encouraged to review the Plan. Additionally, potential users of the competitive program are encouraged to review the Plan’s accompanying exhibits: Project Feasibility and Cost Guidelines, Scoring Guidelines, and Monitoring Policies.

Please email the Community Investment Group or call 312-565-5824 with any questions.