The Federal Home Loan Bank of Chicago’s Board of Directors has approved the 2018 Affordable Housing Program Implementation Plan, which outlines requirements and guidelines applicable to the Bank’s Affordable Housing Program. The Affordable Housing Program includes both the homeownership set-aside program (Downpayment Plus^®) and the competitive program. Significant details of the 2018 Implementation Plan are described below:

Downpayment Plus (DPP^®) Programs

• The member limit is unchanged at $420,000, provided on a first-come, first-served basis.
• DPP continues to function as a matching program. Homebuyers must contribute a minimum of $1,000 toward the transaction. The maximum grant amount is the lesser of: three times the homebuyer’s net contribution; $6,000; or 25% of the first mortgage amount.
• For DPP Advantage^®, there is no homebuyer contribution or matching requirement. The grant amount is the lesser of 25% of the first mortgage amount or $6,000.
• Homebuyer education must now be provided by an organization that has adopted the education component of the National Industry Standards for Homeownership Education and Counseling or by an online platform approved by the Federal Home Loan Bank of Chicago.

Competitive Affordable Housing Program (AHP)

• In 2018, there will be one competitive application round with an application deadline of 5:00 p.m. CT on Friday, June 15, 2018. AHP Online will open for application initiation on May 7.
• The maximum subsidy per project is $750,000 or 75% of the total project costs, whichever is less.
• Changes to the Feasibility Guidelines include:
  • Operating cost-per-unit guidelines have increased by 3%.
  • The minimum Low Income Housing Tax Credit (LIHTC) price has decreased to $0.87.
  • Development cost-per-unit guidelines will be published prior to the opening of the 2018 competitive AHP round.
• Changes to Scoring Guidlines include:
  • Promotion of Empowerment/Pre-Purchase Homeownership Education: The provider of this service must have adopted the education component of the National Industry Standards for Homeownership Education and Counseling; adoption of the counseling component is no longer required to qualify for points in this category.
  • Subsidy-per-Unit: Guidance has been added regarding the subsidy-per-unit points scale applicable to owner-occupied new construction projects.
  • Community Stability/Rehabilitation of Existing Occupied Housing: Projects must now be ≤ 50% vacant at the time of application to qualify for points in this category.
  • Community Stability/Elimination of Blighting Influences: Projects must now be > 50% vacant at the time of application to receive points in this category.