2.1: AHP Subsidies
The FHLBanks promote timely use of the AHP subsidy for eligible households. Other Information:
Congress expanded the FHLBank System’s public policy mission in 1989 by establishing the AHP. The FHLBanks’ use AHP funds
to support affordable housing activities of their members. whether this requirement is met and will work with the FHLBanks
to promote timely use of AHP subsidy by approved projects to provide housing to eligible households. The AHP subsidizes the
cost of affordable owner-occupied and rental housing for very-low, low- and moderate-income households. The subsidy may be
in the form of a grant or a belowcost or subsidized interest rate on an FHLBank advance to a member. The Bank Act requires
each FHLBank to contribute at least 10 percent of its annual net earnings to the AHP, subject to a minimum annual combined
contribution by all 12 FHLBanks of $100 million. The AHP regulation requires that a project must be likely to draw down the
AHP subsidy or use it to procure other financing commitments within 12 months of the date of approval of the application.
The Finance Board will assess whether this requirement is met and will work with the FHLBanks to promote timely use of AHP
subsidy by approved projects to provide housing to eligible households.
Indicator(s):
|
