Final AHP Rule: Changes to the Downpayment Plus® Program

October 17, 2019  

For nearly 30 years, the Affordable Housing Program (AHP) has successfully helped Federal Home Loan Bank (FHLBank) members and their partners create affordable housing opportunities in the communities they serve. On November 28, 2018, the Federal Housing Finance Agency (FHFA) published its amended regulation (Final AHP Rule), giving the FHLBanks greater flexibility to identify and respond to the unique needs of their Districts. For an overview of the Final AHP Rule and comprehensive list of changes, visit our AHP Modernization webpage.   

The Final AHP Rule necessitates three significant changes to the Set-aside Program(s), known within the FHLBank Chicago’s District as the Downpayment Plus® Program (DPP®).  These changes are summarized below.
  1. In order to participate in the 2020 DPP programs, member institutions must submit a new Program Agreement, even if the member participated in the 2019 DPP programs. The Program Agreement must be signed by an authorized signatory of the member institution.
  2. The repayment worksheet, which should be used for repayments on or after January 1, 2020, has been updated to reflect:  
    • The new net proceeds calculation,
    • A de minimis exception to subsidy repayment when the amount subject to repayment is $2,500 or less, and
    • The use of a proxy method based on sales price to determine whether the subsequent homebuyer is a low- or moderate-income household. This may result in an exception to repayment.
We encourage members to review our brief recorded video providing guidance on how to complete the repayment worksheet. Members may also refer to the instructions tab of the repayment worksheet.
3. The retention agreement for properties located in Illinois and Wisconsin has been updated. This new retention agreement is required for all loan closings on or after January 1, 2020, even if the DPP grant is being funded out of the 2019 DPP program year. Since this retention agreement is for properties in Illinois or Wisconsin only, please review and update any retention agreement used for properties in other states.

A series of webinars introducing the 2020 DPP programs will be announced soon.

Please contact Community Investment at 312-565-5824 or with any questions.

Federal Home Loan Bank of Chicago
200 East Randolph Drive
Chicago, IL 60601
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"Downpayment Plus" and "DPP" are registered trademarks of the Federal Home Loan Bank of Chicago.